Borrowers could be saving close to $10,000 a year on their mortgage

Saving money in the housing market

Recent analysis from Mozo has found that owner-occupiers and investors could save big bucks by refinancing to a lower rate loan. Based on the most recent Core Logic Home Value Index (HVI) release, Mozo’s team of data experts found how much borrowers can save per year in each of the capital cities.

Using Core Logic’s HVI, Mozo analysed the median house price in each capital city with an average variable rate (6.96% for investors and 6.60% for owner-occupiers) to determine what borrowers spend on repayments. 

It was found that Sydneysiders could save the most by switching, with investors saving $786 a month or $9,440 a year. Owner-occupiers were not far behind, saving $703 a month or $8,439 a year. Canberrans were the next potential refinance savers, with owner occupiers saving $6,547 a year and investors saving $7,324 a year.

Owner-Occupier
(savings per year)
Investor
(savings per year)
Corelogic (HVI) median value
Sydney
$8,439
$9,440
$1,082,129
Canberra
$6,547
$7,324
$839,507
Melbourne
$5,981
$6,690
$766,912
Brisbane
$5,735
$6,415
$735,394
Adelaide
$5,238
$5,860
$671,755
Hobart
$5,115
$5,723
$655,984
Perth
$4,664
$5,217
$598,074
Darwin
$3,808
$4,260
$488,363

While there is some variation depending on the city, borrowers in all capitals can make significant savings by switching to a lower-rate loan. The numbers above also show that investors across the board could be making some serious savings compared to owner-occupiers. Across the eight capital cities, investors could save an average of $530 a month or $6,366 a year when switching from an average variable rate of 6.96% down to the lowest rate investor loan on the Mozo database of 5.79%. 

How can borrowers take advantage of these rates?

According to Mozo spokesperson, Rachel Wastell, “By switching from the average variable rate of 6.60% to the lowest rate of 5.54%, investors and homeowners across Australian capital cities could save $474 permonth, which equates to more than $5,691 per/year”. These extra savings can help with cost-of-living relief, savings goals, or even offset accounts.

So, investors and owner-occupiers alike might be wondering how they can find these low rate loans. One way they can get a lower interest rate is by comparing home loan interest rates on sites like Mozo. 

“By comparing home loan rates on offer, you really can save thousands, as that $400-700 difference in monthly repayments really adds up” Wastell said. “In Sydney, for example, investors switching from the average variable rate to the lowest rate could save almost $10,000 a year.”

Looking to refinance your loan? Check out some home loan refinance offers in the table below… 

Home loan comparisons on Mozo - last updated 21 May 2024

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure
  • Basic Home Loan

    Owner Occupier, LVR<60%, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    6.14% p.a. variable
    6.16% p.a.

    Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.

    Compare
    Details
  • Fixed Rate

    Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    6.54% p.a.
    fixed 2 years
    7.10% p.a.

    Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.

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    Details
  • Elevate

    Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    6.09% p.a. variable
    6.20% p.a.

    Get competitive rates on loan terms of 5 to 30 years with the Aussie Elevate Home Loan. Structure your loan with up to five splits. Make additional repayments (T&Cs apply). Offset accounts available. Unlimited redraw using your online banking account. Choose from weekly, fortnightly or monthly payments For loan amounts from $10,000 to $5 million.

    Compare
    Details
  • Offset Home Loan

    Package, Owner Occupier, LVR<60%, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    6.14% p.a. variable
    6.39% p.a.

    Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.

    Compare
    Details
  • Flex Home Loan

    Owner Occupier, Principal & Interest, LVR 60-70%

    interest rate
    comparison rate
    Initial monthly repayment
    6.24% p.a. variable
    6.48% p.a.

    Compare
    Details