Borrowers dump banks as rivals slash rates

As the property market sizzles and rival lenders slash rates in some of the fiercest mortgage competition we’ve seen in years, borrowers are flocking to comparison sites to hunt out bargain home loan deals.

Interest in cheaper home loans is soaring, putting the big banks under pressure to keep their customers. Competition is particularly fierce on variable rates, with led by the likes of Macquarie Bank which cut its variable rates not once but twice in 2021.

Digital lenders 86 400 and OneTwo have also slashed variable rates to new lows, while has been making waves with its Smart Booster variable home loan starting with a '1' for owner occupier borrowers.

Mozo Money Expert Tom Godfrey said, “Savvy borrowers could save tens of thousands on their home loan by taking the opportunity to shop around and switch.  Given the savings on offer, it's hardly surprising we're seeing a shift to challenger lenders away from the big four banks.”


Macquarie - Offset Home Loan
  • Variable rates from just 2.14% (2.42% comparison rate*) - minimum 40% deposit
  • 100% offset account, redraw facility and extra repayments
  • No upfront fees ($248 annual package fee applies)
The details:

Macquarie is now Australia’s 5th largest home lender, and with offerings like this it’s not hard to see why. The Macquarie Offset Home Loan now has even lower variable rates along with a range of flexible features such as 100% offset (up to 10 free offset accounts per loan account), free extra repayments and online redraw and a split account option. To start the simple application process, simply request a call on the Macquarie website. Available for loans of up to $5 million. - Smart Booster Home Loan
  • 1.85% discounted variable rate for 2 years
  • Rolls over to low ongoing 2.25% (2.21% comparison rate*)

  • Optional offset account for 0.10%
Find out more
The details:

Looking for a loan that's easy on your wallet? Look no further than the Smart Booster Home Loan from popular online lender This low rate, low fee mortgage is packed with handy features like free extra repayments, unlimited free redraw, an optional offset account and a split rate option. With all this value on offer and no pesky ongoing fees to boot, it's no surprise the Smart Booster is a multi-year Mozo Experts Choice Award winner.^ Minimum 20% deposit.

86 400 - Neat Home Loan
  • Variable rates from just 1.89% (1.90% comparison rate*) - min 40% deposit
  • No Lenders Mortgage Insurance for borrowers with 15% deposit / equity
  • Fast and paperless online application process
Find out more

The details:
Australia's first Smart Bank 86 400 has ticked a lot of boxes with a low rate, low fee digital home loan for borrowers looking to keep their costs to a minimum. The Neat Home Loan rewards borrowers with lower loan-to-value-ratios (LVRs) with its most competitive rates, while also being light on fees. There's a $250 settlement fee but no application fees or ongoing fees. Features include free extra repayments and redraw, and repayments can be made weekly, fortnightly or monthly.

Greater Bank - Discount Great Rate Home Loan Fixed
  • 2.59% fixed rate for 1 year (2.23% comparison rate*)
  • Mozo Experts Choice Awards - Home Lender Bank of the Year 2022^
  • Borrow with just 10% deposit
Find out more

The details:

With an ultra-low fixed 1 year rate and no ongoing fees, this competitive fixed home loan from Greater Bank is a great option for borrowers looking to secure home loan repayment certainty and protect against future rate rises. It's available with just a 10% deposit and there's a guarantor option available. NSW, QLD and ACT residents only.

OneTwo - Variable Rate Home Loan
  • 1.89% variable rate (1.79% p.a. comparison rate*)
  • Zero fees + score discounts as you pay off your loan
  • $2,000 refinance cashback for loans over $250K (t&cs apply)
Find out more

The details:
Australia’s newest lender, OneTwo Home Loans, has launched an innovative variable home loan that combines a low rate and zero fees with features that reward you for paying down your loan. Each time you pay off 5% of your original loan, OneTwo will drop your rate by 0.03% (discount capped at 0.15%). On top of this, OneTwo will match any extra repayments made in the first 6 months (up to $2,500).  Available to refinancers in metro NSW and Victoria. 80% LVR.

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Looking for more options? Head over to our home loan comparison table to compare 500+ home loans from more than 80 lenders.

* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

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