Give yourself a Christmas bonus with this easy home loan trick

By Tom Watson · · 2 min read
Fact Checked
Advertiser disclosure

The clock’s ticking down to Christmas. In fact, there are just ten days to go.

If you’re organised that means your presents for the family have been bought, wrapped and are now sitting under the tree. But why not keep that festive cheer going with a present of your own in the form of a Christmas bonus.

For Aussies with a home loan that may be easier to achieve than than you would think, and it all comes down to one word - refinancing.

RELATED: Bargains to record breakers: Australia’s cheapest and most expensive properties of 2018

While the idea of refinancing your home loan might not get you quite as excited as unwrapping a new smart tv or concert tickets, with thousands of dollars in potential savings in store Mozo Director, Kirsty Lamont, suggested it could be well worth the effort - especially if you’ve seen your rate hiked recently.

“From the big banks to the smaller lenders, many Aussie homeowners will have been whacked with one, if not more rate increases from their banks during the year,” she said.

“The good news is that it’s never too late in the year to take action. Homeowners looking to refinance can still take advantage of one of the many low rate deals on the market and give themselves a real Christmas bonus to end 2018.”

Home loan offers 2018 - last updated 24 April 2024

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure
  • Featured Product
    Mozo Expert Choice Badge
    Unloan Variable

    Owner Occupier, LVR <80%

    interest rate
    comparison rate
    Initial monthly repayment
    5.99% p.a. variable
    5.90% p.a.

    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 online in minutes.

    Compare
    Go to site
    Details
  • Mozo Expert Choice Badge
    Express Home Loan

    Owner Occupier, Principal & Interest, LVR <90%

    interest rate
    comparison rate
    Initial monthly repayment
    6.01% p.a. variable
    6.14% 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.

    Compare
    Go to site
    Details
  • Basic Home Loan

    Fixed, Investment, Interest Only, LVR <70%

    interest rate
    comparison rate
    Initial monthly repayment
    6.49% p.a.
    fixed 2 years
    6.56% p.a.

    Compare
    Go to site
    Details

How much could refinancing your home loan save you?

According to APRA figures published by Guardian Australia earlier this year, around 80% of all owner occupier home loans are controlled by either ANZ, Commonwealth Bank, NAB or Westpac.

And given that, according to the Mozo database, the average big four variable package rate for a $400,000 owner-occupier home loan, with an 80% LVR over 30 years is currently 4.58%, it makes sense that many homeowners could potentially save.

By comparison, the average variable rate in the Mozo database for the same loan scenario above is currently 4.35%, while Reduce Home Loans’ Rate Lovers Variable Home Loan, currently the lowest rate in the Mozo database, is even lower at 3.44% (3.51% comparison rate*).

But just how much could that rate difference translate to when it comes to your back pocket?

According to the Mozo home loan repayments calculator, a borrower with a $400,000 home loan making principal and interest repayments over 30 years would need to pay $2,046 a month on a loan with the average big bank packaged interest rate of 4.58%.

However, if they were to take up a home loan with the average rate in the Mozo database of 4.35%, that monthly repayment would fall to $1,991, and it would drop even further to $1,783 each month with the Reduce Home Loans rate of 3.44% (3.51% comparison rate*).  

RELATED: Crush your mortgage in 2019 with these top value home loans

Think now’s the time to finally think about refinancing your home loan? See what’s out there by checking out some of the hot home loan deals in the table above, or compare even more offers using Mozo’s handy refinance comparison tables. 

* 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

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.