Home loan increased this month? See if you could save by refinancing

A middle-aged man compares home loan rates on his laptop. He stands in front of a plain, green backdrop.

The December Reserve Bank of Australia (RBA) rate hold last week was the ointment to last month’s 25 basis-point sting in the wallets of homeowners around the country. 

But it doesn’t change the fact that variable home loan rates have skyrocketed since the RBA began hiking the cash rate. 

While it’s tempting to just accept each rate rise your lender sends and move on with life, choosing to compare home loans and refinance instead could help save you a pretty penny. 

The average rate is costly, but there are cheaper options available

At the time of writing, the Mozo database tracks 297 variable rate home loans. The average variable rate in the database is 6.85% p.a. (P&I, OO, $400k, <80% LVR), as of 13 December 2023. 

Currently, the lowest rate we track is The Capricornian’s Country to Coast Variable Rate Offset Home Loan, offering rates from 5.69% p.a. (5.70% p.a. comparison rate*). 

Comparing the average rate to the lowest rate in the Mozo database shows you could save as much as $287 per month if you were to switch from paying 6.85% p.a. to 5.69% p.a. 

The potential savings don’t only apply to your monthly repayments either. The difference that’s often overlooked comes from the total interest you end up paying along the way.

For this one, we’ll need to break out the mortgage repayment calculator.

A screenshot of the Mozo mortgage repayment calculator
Mozo's mortgage repayment calculator

If your interest rate is 6.85% p.a., you’re up for monthly repayments of $2,789, with the total amount of interest you have to pay being a whopping $436,687. This takes your home loan bill, when you add the $400,000 loan and the interest together, to $836,687 after 25 years.

A screenshot of the Mozo mortgage repayment calculator
Mozo's mortgage repayment calculator

Now, if you take the same loan over the same amount of time, but you’ve got a lower interest rate of 5.69% p.a., your interest payable comes down by $86,104 to $350,583 – or, $750,583 in total. 

A difference of $86,104 at the end of your 25-year home loan, or about $3,444 per year, is hardly loose change.

If you’re currently with a Big 4 bank for your home loan, the average variable rate in the Mozo database is 7.48% p.a., as of 12 December 2023 (P&I, OO, $400k, 80% LVR). So, you can imagine the savings you might make if you refinance to a low-rate home loan.

Which lenders offer low variable home loan rates in December?

There are plenty of lenders in the Mozo database that currently offer variable rate home loans below the average rate of 6.85% p.a. 

Some of the lowest rates we track come from customer-owned banks and credit unions, like The Capricornian and Police Bank, but there are also several digital lenders offering interest rates far below the average:

Mozo may receive payment if you click to the website of one of the products below. Mozo does not compare the entire market.
Important disclosures and comparison rate warning*
Variable
  • Variable rates from 5.74% p.a. (5.65% p.a. comparison rate*)
  • Rate discount annually (T&Cs apply)
  • Free extra repayments and redraws
  • 2023 Mozo Experts Choice Award^ winner

The Unloan Variable home loan offers refinancers a competitive interest rate starting at 5.99% p.a. (5.90% p.a. comparison rate*), with an annual rate discount of 0.01% p.a. (up to 0.30% p.a.) for up to 30 years. It also comes with nifty features like fee-free extra repayments and a redraw facility. 

So, if you’re a refinancer with a loan-to-value ratio (LVR) of less than 80%, and you like the idea of an annual rate discount, this could be one to shortlist. 

Did we mention that it comes with no application, discharge, or account-keeping fees?

Variable Home Loan
  • Variable rates from 6.04% p.a. (6.06% p.a. comparison rate*)
  • Secure a home loan with a 10% deposit
  • No application fees
  • Offset account available
  • 2023 Mozo Experts Choice Award^ winner
Find out more

If you’re after a competitive variable interest rate, then digital lender loans.com.au is one to consider – especially if you’re working with a 10% deposit. There are no application, ongoing, or additional repayment fees, plus you can make unlimited free redraws. However, it should be noted that there is a $300 settlement fee you’ll need to pay. Also, if you’d like to add an offset account to your loan, it will bump up your rate by 0.10% p.a.

Home Variable Rate
  • Variable rates from 6.15% p.a. (6.15% p.a. comparison rate*)
  • No application, ongoing, redraw, extra repayment or discharge fees
  • Fee-free offset account
  • For buyers in capital cities or major regional centres only
Find out more

If you’re familiar with Up’s savings account, you might be interested in checking out their competitive variable rates. Starting at 6.15% p.a. (6.15% p.a. comparison rate*), Up’s Home Variable Rate loan offers free unlimited repayments, redraws and up to 50 free offset accounts (with the option to use your Up savings account as an offset, if you like). 

Up will also cover the first $400 of your property valuation, which is a nice touch. 

The Home Variable Rate from Up is only available to owner-occupiers looking to buy in a capital city or major regional centre. For more information about eligibility, check the Up website.

Mozo compares 297 variable rate home loans, 191 of which are below the average rate of 6.85% p.a. (as of 13 December 2023). 

If you’re looking to break into the market for the first time using a competitive rate, or if your existing home loan rate is rising, compare home loans to find a cheaper rate that could save you serious cash. 

Check out some of the featured products below.

Home loan comparisons on Mozo

Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can compare more home loans here.
Last updated 25 July 2024 Important disclosures and comparison rate warning*
  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    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.

  • Basic Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    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.

  • Neat Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.11 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.

  • Special Real Deal Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <80%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.13 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    Refinancers or first home buyers pay no monthly or annual fees. Up to $3,000 cashback when you complete your home loan application online. $2,000 cashback on loans ≥$250K; or $3,000 cashback on loans ≥$500K. LVR ≤80%. T&Cs and credit criteria apply.

  • Optimum Fixed Rate Home Loan

    • Owner Occupier
    • Principal & Interest
    Interest rate
    5.69 % p.a.
    Fixed 3 years
    Comparison rate
    6.34 % p.a.
    Initial monthly repayment
    $2,899
    Go to site

    Lock in a competitive interest rate and enjoy peace of mind for the fixed period. Available for owner occupied new and refinanced home loans with at least 20% deposit. Split option available as well as offset and redraw. Noapplication, ongoing or banking fees. Third Party fees may be applicable - payable within loan repayments. Extra repayments up to $20K per annum permitted. Apply online, 100% member owned credit union.

  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    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.

  • OMG Home Loan

    • Owner Occupier
    • Principal & Interest
    • <60% LVR
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    6.02 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    BCU Bank’s OMG owner occupied home loan offers a variety of great low rates depending on your deposit. Save with no ongoing annual fees. Access your extra payments when you need to through the redraw facility. Pre-approval valid for 3 months.

  • Flex Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    5.99 % p.a.
    Fixed 3 years
    Comparison rate
    6.34 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Competitive Fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.

  • Express Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <90%
    Interest rate
    6.01 % p.a.
    Variable
    Comparison rate
    6.14 % p.a.
    Initial monthly repayment
    $3,001
    Go to site

    Get 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.

  • Neat Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.11 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.

  • Special Real Deal Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <80%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.13 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    Refinancers or first home buyers pay no monthly or annual fees. Up to $3,000 cashback when you complete your home loan application online. $2,000 cashback on loans ≥$250K; or $3,000 cashback on loans ≥$500K. LVR ≤80%. T&Cs and credit criteria apply.

  • Basic Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    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.

  • Flex Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.38 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Competitive variable rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.

  • Offset Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.39 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    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.

  • Basic Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR<70%
    Interest rate
    6.25 % p.a.
    Fixed 3 years
    Comparison rate
    6.20 % p.a.
    Initial monthly repayment
    $3,079
    Go to site

    No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $10,000,000.

  • Offset Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR <70%
    Interest rate
    6.25 % p.a.
    Fixed 3 years
    Comparison rate
    6.42 % p.a.
    Initial monthly repayment
    $3,079
    Go to site

  • Fixed Rate

    • Owner Occupier
    • Principal & Interest
    • <80% LVR
    Interest rate
    6.54 % p.a.
    Fixed 2 years
    Comparison rate
    7.10 % p.a.
    Initial monthly repayment
    $3,174

    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.

image of houses

Need help with refinancing?

You might have questions that need personal answers. We’ve teamed up with the mortgage brokers at Lendi to get you the answers you need, and a home loan deal you deserve.

Learn 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 $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.