Home lenders slash variable rates despite RBA hold

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Australia’s average variable home loan rate has hit a jaw-dropping new low of 3.14% this month despite the Reserve Bank keeping rates on hold, as the battle for borrowers intensifies amongst the nation’s top rival lenders.

The crown for lowest major bank variable rate is now held by Bank of Queensland with its stellar new 1.98% p.a. (2.15% p.a. comparison rate*) Economy Variable Home Loan for borrowers who meet the bank's LVR and debt to income ratio criteria.

Macquarie has just slashed 15 basis points off its already competitive variable rates, in a move that is sure to cement its status as Australia’s 5th largest mortgage lender, while new digital lender Nano is wooing refinancers with a compelling 1.99% variable and comparison rate* home loan.

So, if you'd like to take advantage of the latest rate cuts to snap up a killer new home loan deal, read on for the Mozo Editor’s rundown of these stellar new offers.


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

  • Free extra repayments and redraw

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, plus 100% offset (up to 10 free offset accounts per loan account), free extra repayments and online redraws, a split loan option and even repayment holidays for those times in life when you need to hit pause. There's a $248 annual package fee but no upfront fees to worry about.

Where do I get it? Head over to Macquarie to find out more >>

Bank of Queensland Economy Variable Home Loan
Bank of Queensland
  • New variable rates from just 1.98% p.a. (2.15% p.a. comparison rate*)

  • Bonus $3,000 cashback for refinancers - Limited time only!

  • Available to borrowers with 70% LVR

The details:

BOQ is a favourite with borrowers looking to find value outside of the big four banks, and for good reason. This jaw-dropping new sub 2.00% variable home loan is available to borrowers who have an LVR of 70% or less and who meet BOQ's debt to income ratio criteria. Loan features include free extra repayments and free redraws for a $10 monthly service fee, plus refinancers can score a bonus $3,000 cashback for a limited only. Minimum loan size $250,000.


Nano Variable Home Loan
  • 1.99% variable and comparison rate* (owner occupier refinancers only)

  • Zero upfront or ongoing service fees

  • Free 100% offset sub account

The details:

The Nano Variable Home Loan offers one of the lowest variable rates in town for refinancers with 75% LVR, and refreshingly it doesn't ask borrowers to sacrifice flexibility or features for the opportunity to save thousands. This feature-packed home loan comes with unlimited additional repayments, free redraw and a free 100% offset account, plus there's zero Nano fees to boot. It's available to refinancers with 75% LVR for loans of up to $2,500,000.

Where do I get it? Head over to Nano to find out more >>

Well Home Loans Equity Plus
Well Home Loans
  • 1.87% variable rate (1.90% comparison rate*)

  • Optional offset account and free online redraw

  • Available to borrowers with 40% equity in their property

The details:

This jaw-dropping new variable rate from online lender Well Home Loans is one of the lowest available for borrowers with 40% deposit or equity, making it a great choice for both equity release or refinancers looking to save money on their home loan. Flexible features include an offset account option, free extra repayments and free online redraw. There's an upfront fee of $750 but no valuation or ongoing fees.

Where do I get it? Head over to Well Home Loans to find out more >>

*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.

^See information about the Mozo Experts Choice Home loans Awards

Want to compare more home loans? View the latest mortgage rates from over 80 lenders at Mozo's home loan comparison hub.

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