How to get a home loan rate starting with a ‘3’

Rate rise pain is now a reality for millions of Aussie home borrowers, with the Reserve Bank forecast to continue raising rates for much of 2022. While the golden era of record low home loan rates is over, the good news is that it’s still possible to find super-low variable home loans well under 4.00%.

The average big 4 bank variable rate currently sits at 4.68%, but at the super competitive end of the market top online lenders like UBank, and Unloan are scooping up savvy borrowers with variable rates that still start with a ‘3’.

Mozo Money Expert Kirsty Lamont said, "With more rate hikes coming down the line and borrowers facing significantly higher mortgage repayments, now is the time to ensure that you’re not overpaying on your home loan. Switching to a cheaper loan is a sure-fire way to offset the pain of rising rates.”

Read on for the Mozo Editor’s rundown of some of the top low-rate home loans on the market and see how much you could save by switching.


TOP HOME LOANS THAT START WITH A '3' - Variable Home Loan 70
  • 3.10% variable rate (3.12% comparison rate*)
  • Free extra repayments and redraw + optional offset account
  • Available to borrowers with 70% LVR

The details:
This low rate, low fee home loan could help you save thousands on your mortgage and is packed with useful features like unlimited free extra repayments and redraw, multiple loan split options and an optional offset account for 0.10%. You can borrow up to $2 million with 30% deposit or equity, and pay no monthly or ongoing fees. What's more,'s streamlined online process lets you find out if you pre-qualify in less than a minute and complete your application online.

Unloan - Variable Home Loan
  • 3.14% variable rate (3.06% comparison rate*)
  • Zero upfront or ongoing fees
  • Refinancers only

The details:
Unloan is a stellar new digital home loan built by CommBank, offering owner-occupiers a low 3.14% variable rate (3.06% comparison rate*) along with a loyalty discount that shaves 1 basis point off your interest every year for up to 30 years. Loan features include free extra repayments and redraw, and there are no pesky fees to pay. Available for refinance loans of up to $3M. Minimum 80% LVR.

Yard - Variable Home Loan
  • 3.34% variable rate (3.38% comparison rate*)
  • 100% offset account option + free extra repayments and redraw
  • Available to borrowers with 60% equity in their property

The details:
Looking for a home loan that could save you in the long run without having to sacrifice flexible features like an offset account and redraw facility? Then don’t miss this variable home loan from competitive online lender Yard. Benefits include unlimited additional repayments, free redraw and zero ongoing fees, plus you can choose to add a 100% offset account for an extra $10 a month. What's more, Yard's simple online application makes it easy to apply.

UBank Neat Home Loan
  • New variable rates from 3.64% (3.66% comparison rate*) - min 40% deposit
  • Free extra repayments and redraw facility
  • Fast and paperless online application process

The details:
UBank ticks all the boxes with this low rate, low fee digital home loan for borrowers looking to keep their costs to a minimum. The Neat Home Loan rewards borrowers with lower loan-to-value-ratios (LVRs) with its most competitive rates, while also being light on fees. There's a $250 settlement fee but no application fees or ongoing fees. Features include free extra repayments and redraw, and repayments can be made weekly, fortnightly or monthly.

Macquarie - Offset Home Loan
  • New Variable rates from 3.69% (3.94% comparison rate*) - minimum 40% deposit
  • 100% offset account, redraw facility and extra repayments
  • No upfront fees

This competitive packaged home loan from Macquarie has all the bells and whistles you'd expect of Australia's fifth largest lender, including 100% offset (up to 10 free offset accounts per loan account), free extra repayments and online redraws, a split loan option and even repayment holidays for those times in life when you need to hit pause. There's a $248 annual package fee but no upfront fees to worry about.

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Want to compare more home loans? View the latest mortgage rates from over 80 lenders at Mozo's home loan comparison hub.

* 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, loan amount and term entered. 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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