How to beat home loan rate rises

By Mozo Editorial · Thursday, 4 October 2018 · 3 min read

Fact Checked

Mortgage rates are going up, with Westpac becoming the first big bank to raise rates out of cycle and other lenders set to follow their lead. Home loan customers will be justifiably upset, but the good news is that you don’t have to just swallow it.

Rates may be going up for existing borrowers, but lenders are actively wooing new home loan customers with rate discounts, cashbacks and other Spring incentives. So, rather than sucking up a rate rise, now could be the perfect time to consider your options and switch to a better deal.

To get you started, here are five great value refinance home loans from Mozo Experts Choice winning lenders.

Low Cost Refinance Home Loans - Spring 2018

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Important disclosures and comparison rate warning*

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Comparison rate warning

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.

How Initial Monthly Repayments figures are estimated

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.

loans.com.au - Essentials Variable 90

3.64% interest rate (3.66% comparison rate*)
No application or ongoing service fee
Free extra repayments and redraw facility

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With a super low variable rate, no application or annual fees and flexible features like unlimited extra repayments and free redraw, the loans.com.au Essentials Variable 80 is a top pick for refinancers borrowing between $50,000 and $2 million. You can apply online, refinance and start saving with minimum hassle thanks to loans.com.au's streamlined online process. Plus it’s got the expert seal of approval, taking out a Mozo Experts Choice Award for Low Cost Home Loan this year.

UBank - UHomeLoan - Discount Offer

Discounted 3.59% variable and comparison rate*
$0 application or annual fees
Fast and easy to apply online

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Refinancers could save thousands with this razor sharp variable rate home loan from UBank, on offer for a limited time to owner occupiers borrowing $200,000 or more. There's $0 bank fees and you can make extra repayments for free, plus choose from weekly, fortnightly or monthly repayments.

NAB - Base Variable Rate Home Loan Special Offer

3.69% variable rate (3.73% comparison rate*)
Free extra repayments and redraw, plus $0 ongoing fees
$1,250 bonus with an eligible NAB home loan banking bundle

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If you’re looking for seriously competitive rate from a big bank, plus a heap of other perks, it’s hard to look past the NAB Base Variable Rate home loan. Not only will you pay no ongoing service fees and have access to free extra repayments and a redraw facility, you could also take advantage of NAB’s $1,250 bonus offer if you apply for a new loan over $250,000 before December 2 and open a NAB Transaction Account for your bonus to be paid into.

Bank Australia - Basic Home Loan Special

3.65% variable rate (3.66% comparison rate*) special
$0 establishment fee until 30 September 2018
Australia's responsible banking alternative

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Bank Australia looks after its customers by returning profits through better rates and fees and a commitment to responsible causes, like not lending to the fossil fuel industry. In addition to a competitive interest rate, you'll be able to take advantage of flexible features like free redraw, extra repayments, the option to split your loan between fixed and variable rates and a loan repayment pause option. What's more, you'll pay no establishment fees if you apply by 30 September.

See how much you could save by refinancing

We can show you the monthly repayment amount for a range of loans

Want to compare more great value home loan options? Head over to our home loan comparison table to check them out.

^* 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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How to beat home loan rate rises