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

By Jack Dona · · 2 min read
Fact Checked
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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:

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

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.

Last updated 25 May 2025 Important disclosures and comparison rate warning*
What are your home loan needs?
Loan purpose
Buying or Refinancing
  • Promoted

    Unloan Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    5.49 % p.a.
    Variable
    Comparison rate
    5.40 % p.a.
    Initial monthly repayment
    $2,836
    Go to site
    • RATE CUT NOW LIVE!
    • The first home loan with an increasing discount (conditions apply)
    • No application or banking fees
  • Promoted

    Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 10% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.78 % p.a.
    Variable
    Comparison rate
    5.82 % p.a.
    Initial monthly repayment
    $2,927
    Go to site
    • NRMA Home Loans has confirmed a rate cut of 0.25% p.a. effective 6 June
    • $0 application fee to pay
    • Apply in as little as 15 minutes
  • Promoted

    Home Loan

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Redraw available
    Interest rate
    5.69 % p.a.
    Variable
    Comparison rate
    5.70 % p.a.
    Initial monthly repayment
    $2,899
    Go to site
    • Regional Australia Bank has confirmed a rate cut of 0.25% p.a. effective 4 June
    • No application and monthly account keeping fees
    • Get up to $4,000 cashback (T&Cs apply)
  • Promoted

    Fixed Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 10% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.74 % p.a.
    Fixed 2 years
    Comparison rate
    5.81 % p.a.
    Initial monthly repayment
    $2,915
    Go to site
    • $0 application fee to pay
    • Additional repayments up to $20,000/year
    • Apply in as little as 15 minutes

  • Unloan Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    5.49 % p.a.
    Variable
    Comparison rate
    5.40 % p.a.
    Initial monthly repayment
    $2,836
    Go to site
    • RATE CUT NOW LIVE!
    • The first home loan with an increasing discount (conditions apply)
    • No application or banking fees

  • Fixed Rate Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 5% min deposit
    Interest rate
    5.49 % p.a.
    Fixed 2 years
    Comparison rate
    5.91 % p.a.
    Initial monthly repayment
    $2,836
    Go to site
    • No ongoing annual fees
    • Make up to $25,000 extra repayments during a fixed period, fee free (T&Cs apply)
    • Lock in for up to 5 years.

  • Fixed Rate Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • Interest only
    • 20% min deposit
    Interest rate
    5.49 % p.a.
    Fixed 2 years
    Comparison rate
    5.96 % p.a.
    Initial monthly repayment
    $2,836
    Go to site
    • Free extra repayments of up to $25,000 during the fixed rate period.
    • Split loan available
    • Weekly, fortnightly, or monthly repayment options

  • Home Loan

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Redraw available
    Interest rate
    5.69 % p.a.
    Variable
    Comparison rate
    5.70 % p.a.
    Initial monthly repayment
    $2,899
    Go to site
    • Regional Australia Bank has confirmed a rate cut of 0.25% p.a. effective 4 June
    • No application and monthly account keeping fees
    • Get up to $4,000 cashback (T&Cs apply)

  • Fixed Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 5% min deposit
    • Redraw available
    • Cashback
    Interest rate
    5.69 % p.a.
    Fixed 2 years
    Comparison rate
    6.00 % p.a.
    Initial monthly repayment
    $2,899
    Go to site
    • Get up to $4,000 cashback (T&Cs apply)
    • Up to 12 months repayments in advance without penalties
    • Split loan available

  • OMG Home Loan

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Redraw available
    Interest rate
    5.74 % p.a.
    Variable
    Comparison rate
    5.77 % p.a.
    Initial monthly repayment
    $2,915
    Go to site
    • BCU Bank has confirmed a rate cut of 0.25% p.a. effective 10 June
    • No ongoing annual fees
    • Pre-approval valid for 3 months

  • Fixed Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 10% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.74 % p.a.
    Fixed 2 years
    Comparison rate
    5.81 % p.a.
    Initial monthly repayment
    $2,915
    Go to site
    • $0 application fee to pay
    • Additional repayments up to $20,000/year
    • Apply in as little as 15 minutes

  • Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 10% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.78 % p.a.
    Variable
    Comparison rate
    5.82 % p.a.
    Initial monthly repayment
    $2,927
    Go to site
    • NRMA Home Loans has confirmed a rate cut of 0.25% p.a. effective 6 June
    • $0 application fee to pay
    • Apply in as little as 15 minutes

  • Budget Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    • Cashback
    Interest rate
    5.79 % p.a.
    Variable
    Comparison rate
    5.82 % p.a.
    Initial monthly repayment
    $2,931
    Go to site
    • IMB Bank has confirmed a rate cut of 0.25% p.a. effective 30 May
    • Get up to $4,000 cashback (T&Cs apply)
    • Split loan available

  • Variable Home Loan 90

    • Owner occupier
    • Principal & Interest
    • 10% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.79 % p.a.
    Variable
    Comparison rate
    5.83 % p.a.
    Initial monthly repayment
    $2,931
    Go to site
    • No monthly or ongoing fees
    • Option to add an offset for 0.10% p.a.

  • Flex Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.79 % p.a.
    Fixed 2 years
    Comparison rate
    6.07 % p.a.
    Initial monthly repayment
    $2,931
    Go to site
    • Multiple offset accounts available
    • Free extra repayments
    • Easy redraw facility

  • Neat Home Loan

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Redraw available
    Interest rate
    5.84 % p.a.
    Variable
    Comparison rate
    5.86 % p.a.
    Initial monthly repayment
    $2,947
    Go to site
    • ubank has confirmed a rate cut of 0.25% p.a. effective 29 May
    • Easy redraw facility
    • No annual fee to pay

  • Flex Home Loan

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.84 % p.a.
    Variable
    Comparison rate
    6.08 % p.a.
    Initial monthly repayment
    $2,947
    Go to site
    • ubank has confirmed a rate cut of 0.25% p.a. effective 29 May
    • Free extra repayments
    • Multiple offset accounts available

  • Home Loan with Offset

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.88 % p.a.
    Variable
    Comparison rate
    5.89 % p.a.
    Initial monthly repayment
    $2,959
    Go to site
    • Regional Australia Bank has confirmed a rate cut of 0.25% p.a. effective 4 June
    • No application and monthly account keeping fees
    • Get up to $4,000 cashback (T&Cs apply)

  • Basic Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Redraw available
    Interest rate
    5.88 % p.a.
    Variable
    Comparison rate
    5.91 % p.a.
    Initial monthly repayment
    $2,959
    Go to site
    • P&N Bank has confirmed a rate cut of 0.25% p.a. effective 10 June
    • No ongoing monthly loan maintenance fees
    • Weekly, fortnightly, or monthly repayment options

  • Offset Home Loan

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.89 % p.a.
    Variable
    Comparison rate
    5.92 % p.a.
    Initial monthly repayment
    $2,962
    Go to site
    • BCU Bank has confirmed a rate cut of 0.25% p.a. effective 10 June
    • No ongoing monthly loan maintenance fees to pay.
    • Pre-approval valid for 3 months
Showing 16 results from 415 home loans. Use the filters to see more

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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

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.

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