Home loan variable rates now start with a '2'

Mozo

04 Jul 2019

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In a rates dream for home borrowers, Australia's challenger lenders are racing to roll out variable and fixed home loans with a '2' in front, offering potential savings of tens of thousands of dollars for borrowers who are prepared to compare and switch.

Since the RBA cut the cash rate to a historical low of 1.00% on Tuesday, online lenders Homestar and Reduce Home Loans have raced out of the blocks with sub 3.00% variable home loans, while new big bank challenger Athena is not far behind with a cracking new 3.09% variable rate.

Fixed rates are also plunging, with UBank and BoQ are amongst a handful of lenders now offering fixed rates with a '2' in front. So if you’ve been holding out for the right home loan, here are some of the top variable and fixed rate loans currently on the market to get your search off to a smashing start.

Top Variable and Fixed Home Loans

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Athena Variable Home Loan
  • New 3.09% variable rate (3.05% comparison rate*)

  • Free extra repayments and redraw facility

  • No annual or application fees

Athena has made a habit of slashing rates. Following June’s RBA cut, we received word within minutes that it would be passing on the full 0.25% cut to its customers, effective immediately, and July was no different. Athena's commitment to low rates and treating customers fairly is winning borrowers over, and loan features like no application or ongoing fees, free extra repayments and a free redraw facility, make the Athena Variable Home Loan for refinancers a tough one to beat.

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Homestar Star Essentials Home Loan Refinance Special
  • New 2.99% variable and comparison rate*

  • Unlimited additional repayments and free online redraw

  • No application or ongoing fees

As Australia’s oldest online lender, Homestar knows it has a reputation to uphold, and it’s certainly doing a good job of it. Following the RBA's decision this month, it reduced rates by 0.25% for new and existing customers almost immediately. Owner occupiers can now secure a stellar sub 3.00% variable rate if the loan is between $150,000 and $850,000. On top of that, you can make repayments weekly, fortnightly or monthly, pay down your loan faster without incurring any penalties, and access a free redraw facility.

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UBank UHomeLoan
  • 2.99% fixed rate for 1 year (3.86% comparison rate*)

  • Free extra repayments up to $20,000 each year

  • Multiple Mozo Experts Choice 2019 winner

Borrowers with a 20% deposit can apply for this cracking 1 year fixed rate and pay no service fees plus have the opportunity to make free extra repayments of up to $20,000 every year. Just remember there is no redraw facility. The UBank UHome Loan also received two 2019 Mozo Experts Choice Awards in the Fixed Rate and Investor Fixed Home Loan categories, so you know you’ll be onto a winner. 

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loans.com.au Smart Home Loan
  • 3.28% variable rate (3.30% comparison rate*)

  • $0 application or ongoing fees

  • Unlimited free extra repayments and redraw facility Go to site

Looking for a loan with more bang for your buck? Then look no further than the Smart Home Loan from loans.com.au. With a great low rate, this competitive mortgage is packed with handy features like free extra repayments, unlimited free redraw and a split rate option. A huge contender in the low interest rate mortgage arena, this loan has all the perks you need and nothing you don’t.

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Bank of Queensland Discount Fixed Rate 300k+
  • 2.99% fixed three year rate (4.19% comparison rate*)

  • Borrow with a 5% deposit

  • $1,000 cash back offer for first home buyers

If you prefer the security of a fixed rate, this Bank of Queensland Fixed Rate offer is a cracker. Not only can you lock in a sub 3.00% rate for 3 years, but you can also make free additional repayments of up to $5,000 each year for the fixed term and borrow with as little as 5% deposit. What's more, first home buyers who apply and are approved by 31 August will receive $1000 cash back!

*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.

And if you’d like to compare even more home loan options, head on over to our home loan comparison tool

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