February home loan snapshot: Athena and ANZ lead variable rate drops
While plenty of Australians have been hitting the beach and putting their feet up for a much deserved rest over the past month, there’s been no pause to rate changes in the mortgage market.
So which lenders have recently altered their rates, what are some of the lowest home loan rates around at present, and could we be in for a hike from the Reserve Bank rate later in the year? Let’s get into it.
Recent variable and fixed rate changes
Generally, home loan rates have continued on the divergent course we’ve witnessed over the past few months: lenders have been cutting variable rates and they’ve been lifting fixed rates. Here are some of the more significant rate changes from recent weeks:
- NAB subsidiary 86 400 trimmed the variable rate on its Neat Home Loan (owner occupier, 70-80% LVR) by five basis points to 2.29% p.a. (2.30% p.a. comparison rate*).
- Online lender Athena took 10-30bp off of its AcceleRATES Variable Home Loan. The lowest variable rate available to owner occupiers (<60% LVR) is now 1.89% p.a. (1.89% p.a. comparison rate*).
- ANZ cut 20bp off of its Simplicity PLUS Special Offer loan, meaning the lowest variable rate for owner occupiers (<80% LVR) is now 2.29% p.a. (2.33% p.a. comparison rate*) - on par with NAB and Westpac.
- On the fixed rate front, former Mozo database rate leader Greater Bank lifted fixed rates across all terms. The lowest rate on offer with its Discount Great Rate Loan for owner occupiers (LVR<90%) is still a competitive 1.89% p.a. (2.17% p.a. comparison rate*) for a 1-year term though.
- Westpac also increased a number of fixed rates. The lowest fixed rate offered by the major bank for owner occupiers (<80% LVR) is now 2.49% p.a. (3.64% p.a. comparison rate) for a 1-year term on the Fixed Options Home Loan (Premier Advantage Package).
Lowest home loan rates
Those are just a selection of recent changes, but how do they compare to some of the lowest interest rates available at present? Here’s a look at the lowest variable and fixed mortgage rates available from lenders being tracked in our database for owner occupiers with an LVR <80%.
Lowest variable rates — Mozo database (February 1, 2022)^^
Lender | Loan | Variable rate |
Reduce Home Loans | Super Saver | 1.77% p.a. (1.86% p.a. comparison rate*) |
Well Home Loans | Well Balanced | 1.85% p.a. (1.88% p.a. comparison rate*) |
Homeloans360 | Owner Variable | 1.87% p.a. (1.87% p.a. comparison rate*) |
Pacific Mortgage Group | Standard Variable | 1.87% p.a. (1.87% p.a. comparison rate*) |
Tic:Toc | Variable | 1.89% p.a. (1.90% p.a. comparison rate*) |
Lowest fixed rates — Mozo database (February 1, 2022)^^
Term | Rate leader | Fixed rate |
1-year | UBank | 1.79% p.a. (2.18% p.a. comparison rate*) |
2-year | Qudos Bank | 1.99% p.a. (2.41% p.a. comparison rate*) |
3-year | Bank of us | 2.19% p.a. (2.45% p.a. comparison rate*) |
4-year | BankVic | 2.49% p.a. (3.49% p.a. comparison rate*) |
5-year | BankVic | 2.59% p.a. (3.43% p.a. comparison rate*) |
Will there be an RBA rate rise in 2022?
We know that fixed rates are on the rise, but could variable rates start to head in the direction before too long?
Given that variable rates are at some of the lowest levels we’ve seen in years, it’s almost inevitable that they’ll start ticking up at some point, but the question of when could depend on any moves from the Reserve Bank.
The RBA has previously indicated that a lift to the cash rate before 2024 would be unlikely, but following its November 2021 meeting it indicated that an earlier move could be a possibility.
Some banks, including CBA and Westpac, are now speculating that the Reserve Bank could move on rates as soon as later this year, but Mozo Banking Expert, Peter Marshall, thinks the RBA will be more cautious.
“While things are different in the US - where they have an extended period of increased inflation - we haven’t seen that here in Australia yet. So the RBA will not be looking to move until they have a high level of confidence that inflationary pressure is going to stick around, and it will take some more quarters for that to happen.”
With the Reserve Bank Board meeting for the first time in 2022 this afternoon, we may find out more about its thinking on interest rates sooner rather than later. And you can find coverage on that decision on our dedicated Reserve Bank page.
RELATED: Median house prices in Australian capital cities surpass $1 million
Thinking about purchasing a property or refinancing your existing mortgage in 2022? With loans from a range of lenders side-by-side, make Mozo’s handy comparison tables the first place you compare home loans.
^^Interest rates are based on an owner occupier making principal and interest repayments on a $400,000 loan with an 80% LVR. For more information on average mortgage rates, check out our dedicated Australian home loan statistics page.
Home loan comparison - February 2022 - last updated 28 March 2024
-
Offset Home Loan
Package, Owner Occupier, LVR<60%, Principal & Interest
interest rate
comparison rate
Initial monthly repayment6.15% p.a. variable6.40% 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.
CompareCompareOffset Home Loan
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.
- interest rate
- 6.15% p.a. variable
- comparison rate
- 6.40% p.a.
- interest rate
- 6.15% p.a. variable
- comparison rate
- 6.40% p.a.
- Upfront fees
- $350
- Ongoing fees
- $248.00 yearly
- Discharge Fee
- $400.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- yes
- Maximum loan to value ratio
- 60.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- $10,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Macquarie Offset Home Loan
-
Mozo experts choice awards won:
- Exceptional Value Home Lender - 2024
Express Home Loan
Owner Occupier, Principal & Interest, LVR <90%
interest rate
comparison rate
Initial monthly repayment6.01% p.a. variable6.14% p.a.Get fast online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.
CompareCompareExpress Home Loan
Get fast online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.
- interest rate
- 6.01% p.a. variable
- comparison rate
- 6.14% p.a.
- interest rate
- 6.01% p.a. variable
- comparison rate
- 6.14% p.a.
- Upfront fees
- $134
- Ongoing fees
- $10.00 monthly
- Discharge Fee
- $350.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- yes
- Maximum loan to value ratio
- 90.00%
- minimum borrowing amount
- $5,000
- maximum borrowing amount
- $3,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Bendigo Bank Express Home Loan
-
Mozo experts choice awards won:
- Fixed Rate Home Loan - 2024
- Investor Fixed Home Loan - 2024
Fixed Rate Home Loan
Owner Occupier, Principal & Interest
interest rate
comparison rate
Initial monthly repayment5.99% p.a.
fixed 2 years6.24% p.a.Secure a low rate and enjoy the certainty of repayments, with the BCU Fixed Rate Home Loan. Save with no ongoing annual fees. Pay up to $25,000 extra during a fixed period (T&Cs apply). Lock in for up to 5 years.
CompareCompareFixed Rate Home Loan
Secure a low rate and enjoy the certainty of repayments, with the BCU Fixed Rate Home Loan. Save with no ongoing annual fees. Pay up to $25,000 extra during a fixed period (T&Cs apply). Lock in for up to 5 years.
- interest rate
- 6.29% p.a.
fixed 3 years
- comparison rate
- 6.30% p.a.
- interest rate
- 6.29% p.a.
fixed 3 years
- comparison rate
- 6.30% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $395.00
- Extra repayments
- yes, up to $25,000 during fixed period - fee applies
- Redraw facility
- no
- Offset account
- no
- Maximum loan to value ratio
- 95.00%
- minimum borrowing amount
- $20,000
- maximum borrowing amount
- $2,500,000
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the BCU Bank Fixed Rate Home Loan
-
Featured Product
Ultra Low Rate <95% LVR
Owner Occupier, Principal & Interest
interest rate
comparison rate
Initial monthly repayment6.30% p.a. variable6.58% p.a.Only 5% deposit required to apply. Low upfront costs to pay. No LMI Required. Unlimited Redraw and additional repayments. No Application or ongoing fees. No guarantors or equity sharing required. New Purchase - Metro only.
CompareCompareUltra Low Rate <95% LVR
Only 5% deposit required to apply. Low upfront costs to pay. No LMI Required. Unlimited Redraw and additional repayments. No Application or ongoing fees. No guarantors or equity sharing required. New Purchase - Metro only.
- interest rate
- 6.30% p.a. variable
- comparison rate
- 6.58% p.a.
- interest rate
- 6.30% p.a. variable
- comparison rate
- 6.58% p.a.
- Upfront fees
- $790
- Ongoing fees
- $0.00
- Discharge Fee
- $795.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 95.00%
- minimum borrowing amount
- $350,000
- maximum borrowing amount
- $2,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Sucasa Ultra Low Rate <95% LVR
-
Featured Product
Mozo experts choice awards won:
- Low Cost Home Loan - 2024
Unloan Variable
Owner Occupier, Refinance Only, LVR <80%
interest rate
comparison rate
Initial monthly repayment5.99% p.a. variable5.90% p.a.For refinancers only. Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply in as little as 10 minutes.
CompareCompareUnloan Variable
For refinancers only. Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply in as little as 10 minutes.
- interest rate
- 5.99% p.a. variable
- comparison rate
- 5.90% p.a.
- interest rate
- 5.99% p.a. variable
- comparison rate
- 5.90% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $10,000
- maximum borrowing amount
- $10,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Unloan Unloan Variable
-
Basic Home Loan
Fixed, Owner Occupier, Principal & Interest, LVR<70%
interest rate
comparison rate
Initial monthly repayment5.99% p.a.
fixed 3 years6.13% p.a.No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.
CompareCompareBasic Home Loan
No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.
- interest rate
- 5.99% p.a.
fixed 3 years
- comparison rate
- 6.13% p.a.
- interest rate
- 5.99% p.a.
fixed 3 years
- comparison rate
- 6.13% p.a.
- Upfront fees
- $350
- Ongoing fees
- $0.00
- Discharge Fee
- $400.00
- Extra repayments
- yes - up to $10,000 p.a.
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 70.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- $10,000,000
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Macquarie Basic Home Loan
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* 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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