How these home loan lenders are helping customers save in ways that other banks don’t
Here at Mozo, we make it our mission to help you make your money count for more, and that’s why we want to draw your attention to some of the newer home loan providers that have entered the market in recent years and how they are helping customers to save in ways that other banks currently don’t.
Interest rates are now at their highest levels in years, so every little bit extra that can help reduce your repayments or shorten the length of your mortgage is well worth considering.
Unloan, the digital home loan brand of CommBank has Australia’s first home loan loyalty bonus which shaves an extra 0.01% off your rate for every year (up to a max of 30 years), while Athena, automatically drops the interest rate of your home loan the more you pay down your loan and reach lower LVR tiers and has an existing customer guarantee that ensures that you always get the same rates as new customers on like-for-like loans. Meanwhile, Up helps its borrowers save on interest repayments by pooling savings into up to 50 offset accounts, and newcomer Sucasa is removing the need for expensive Lender’s Mortgage Insurance for home buyers.
So if you’re in the market for a new home loan or looking to refinance, read on for our expert rundown of the home loans on offer from these innovative new players to find out if these options might be a suitable fit for you .
Unloan: A discount that gets better and better
Unloan
- Competitive 5.99% p.a. variable rate (5.90% p.a. comparison rate*)
- Loyalty discount each year (up to 30 years)
- Zero upfront or ongoing fees
- Low cost home loan winner - Mozo Experts Choice Awards 2023 & 2024^
- Only available for refinance with at least 20% deposit
- No offset account
Pros:
Cons:
Unloan is the digital home loan built by CommBank. In addition to the super low 5.99% p.a. variable rate (5.90% p.a. comparison rate*), it offers customers an additional discount of 0.01% p.a off the current interest rate for every year you hold the loan, up to a maximum of 0.30% p.a. Loan features include free extra repayments and redraw, and there are no pesky fees to pay. You can borrow up to $10M as long as you have the minimum 20% deposit. The maximum loan term is 30 years and you can opt to make repayments monthly, fortnightly or weekly. Unloan is also a two time Low Cost Home Loan award winner in the Mozo Experts Choice Awards 2023 & 2024.
Up: Reduce interest payments with up to 50 offset accounts
Up
- Low 5.95% p.a. variable rate (5.95% p.a. comparison rate*)
- Unique offset feature at no extra cost
- No application, monthly, annual, redraw, or discharge fees
- Multiple Mozo Experts Choice Award Winner 2024^
- Only available for owner-occupied properties in major Australian cities
Pros:
Cons:
This app only low fee, low rate home loan wowed our judges in the 2024 Mozo Expert Choice Awards^ taking out awards in two categories including Offset Home Loan and First Home Buyer Loan. You can borrow up to $10 million and will need to have a deposit of at least 10%. Repayments are monthly but you can make unlimited extra repayments anytime with access to a free redraw if you ever need. But that’s not the only way to save, this loan also has up to 50 free offsets, so any money that you have in your Spend or Save accounts get pooled to offset your loan, and this means less you’ll pay in interest. Up is 100% owned by Bendigo Bank.
Athena: Automatic rate drop and existing customer guarantee
Athena
- Your interest rate drops automatically the more you pay down your loan
- Free extra repayments and redraw facility
- No valuation, exit or monthly fees
- Existing customers rate guarantee on like-for-like-loans
- Only available to borrowers purchasing or refinancing properties in capital or major regional cities.
- Minimum 20% deposit required
- No offset account
Pros:
Cons:
Online lender Athena is on a mission to save borrowers money on their mortgage and the Straight Up loan has the key basics covered - competitive rates, no fees and free redraw. Interest rates are tiered depending on your Loan-to-value Ratio (LVR) and as you pay down your home loan you’ll automatically get a lower interest rate. Athena also rewards loyalty and existing customers are guaranteed to always get the same rates as new customers on like-for-like loans. Interest rates start at 6.24% p.a. (6.24% p.a. comp) for loans with an LVR of 50% and go up to 6.39% p.a. (6.35% p.a). The max loan amount is $2.5 million and according to Athena it just takes 15 minutes to apply.
Sucasa: Pay no lenders mortgage insurance and just 5% deposit required
Sucasa
- Only 5% deposit required
- No Lenders mortgage insurance
- Free extra repayments and redraw
- Metro borrowers only
- No offset account
Pros:
Cons:
The Ultra Low Rate loan from newcomer Sucasa is a low deposit home loan which requires a deposit of as little as 5% and waives the need for lenders mortgage insurance ( T&Cs apply). It allows unlimited extra repayments to pay down your loan faster, plus a free online redraw. The interest rate is 6.30% p.a. (6.58% p.a. comp) and there are no ongoing fees but it’s only available for borrowers in metro areas for purchases up to $2.5m. There are upfront fees of $790 to cover valuation and settlement. A $795 discharge fee applies.
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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
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