Find out how much refinancing now, might save you by next Easter

Tara McCabe

09 Apr 2020

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Following not one but two RBA cash rate cuts this year and a series of cash rate cuts last year, home loan interest rates are the lowest they’ve ever been. So if you’re feeling restless this weekend and want to take a little break from R&R time, why not figure out how much you could save by refinancing your home loan!

How much could you save by refinancing?

After crunching some numbers, our team of data experts figured out that you could save approximately $2,727 in one year, by switching from the average variable home loan rate to the most competitive variable rate in the Mozo database. 

How did we figure out the savings?

The good news is it’s fairly straightforward and you can do it too.

We simply took the example of a $400,000 30-year home loan^ and compared how much someone could save by switching from the average 3.45% p.a.^^ variable home loan rate to Reduce Home Loans Rate Slasher Variable Home Loan, for which rates start competitively low at 2.39% p.a. (2.39% p.a. comparison rate*).

Want to do the same? You can use Mozo’s home loan comparison calculator to compare more home loan interest rates and see how much you could save.

A few fees to remember when refinancing

Before you sign on the dotted line, you’ll want to make sure that the savings are worth it, especially when measured against the fees.

Fees you may be faced with when refinancing include:

  • • A break fee from your current home loan.

  • • An application fee for the home loan you want to switch to.

  • • A valuation fee - should your new lender want a more up-to-date valuation done on your property.

  • • A settlement/legal fee. Once everything is settled, you may have to pay a settlement fee.

Keen to learn more about refinancing? Check out our guide to refinancing your home loan for more tips and tricks.

^The example given is for a $400,000 30-year, principal and interest, owner-occupier home loan with an LVR of 80%.

^^Average variable home loan interest rate correct as of Thursday 9th April 2020.


Compare refinance home loans - rates updated daily

  • Promoted

    Macquarie

    2.54% p.a.

    2.81% p.a.

    $1234

    Product details Close details
    Offset Home Loan Package

    Handy offset account to help pay your home loan off sooner. Up to 10 offset accounts per loan account available. Fee free access at ATMs. Waived credit card annual fee. $0 international purchase fees.

    • $248.00 yearly

    • $400.00

    • yes - free

    • yes - free

    • yes

    • $0

    • 2.54% p.a.

    • 2.81% p.a.

    • $0

    • 70.00%

    • $150,000

    • $5,000,000

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Monthly

    Read our Mozo Review to learn more about the Offset Home Loan

  • Promoted

    loans.com.au

    2.48% p.a.

    2.50% p.a.

    $1234

    Product details Close details
    Smart Home Loan 80

    A low-rate home loan that could save you thousands, with no ongoing fees plus unlimited extra repayments and free redraws. Mozo Experts Choice Low Cost Home Loan 2020.^ You'll need to be borrowing $1 million or less and have at least a 20% deposit required.

    • $0.00

    • $0.00

    • yes - free

    • yes - free

    • Optional - with 0.10% additional interest

    • $520

    • 2.48% p.a.

    • 2.50% p.a.

    • $520

    • 80.00%

    • $50,000

    • $1,000,000

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Smart Home Loan 80

  • Promoted

    HSBC

    p.a.

    2.95% p.a.

    $1234

    Product details Close details
    Fixed Rate Home Loan

    Have the security of a fixed rate for 2 years with the option to split with one of the HSBC variable Home Loans. No ongoing monthly service fees or annual fees. Mozo Experts Choice Fixed Home Loan 2020^

    • $0.00

    • $300.00

    • yes - free up to $10,000 p.a.

    • no

    • no

    • $0

    • p.a.

    • 2.95% p.a.

    • $0

    • 80.00%

    • $50,000

    • $7,500,000

    • Fixed

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Fixed Rate Home Loan

  • Promoted

    Athena

    2.34% p.a.

    2.34% p.a.

    $1234

    Product details Close details
    Celebrate Variable Home Loan

    Fast online application with no fees. Free extra repayments and redraw facility. Min 40% deposit. Crowned Best New Home Loan for 2020 by the Mozo Experts.^

    • $0.00

    • $0.00

    • yes - free

    • yes - free

    • no

    • $0

    • 2.34% p.a.

    • 2.34% p.a.

    • $0

    • 60.00%

    • $100,000

    • $2,000,000

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Celebrate Variable Home Loan

  • Promoted

    Homestar

    2.29% p.a.

    2.32% p.a.

    $1234

    Product details Close details
    Star Essentials Home Loan

    Low Cost Home Loan 2020 winner.^ A home loan packed with all the essentials and offering up to $1500 cashback and no ongoing fees. No Construction loans.

    • $0.00

    • $535.00

    • yes - free

    • yes - free

    • no

    • $515

    • 2.29% p.a.

    • 2.32% p.a.

    • $515

    • 80.00%

    • $150,000

    • $850,000

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    • Refinances receive up to $1,500 cashback or upfront fees waived on purchases for applications received by 31 October 2020 and settled by 31 January 2021.

    Read our Mozo Review to learn more about the Star Essentials Home Loan

*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 the amount and term you entered.

**Initial monthly repayment figures are estimates only, based on the advertised rate, and a loan of $500,000 repaid over 25 years. 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.

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