How you can engineer yourself a Christmas bonus with your home loan
We’re just two weeks out from Christmas which means peak present buying season is upon us, but instead of only watching cash leave your wallet over the holiday period, could you organise yourself a festive bonus as well?
For many Australian homeowners that’s not just wishful thinking, it’s a real possibility if they’re able and willing to refinance their home loan.
Now that might not sound as thrilling as opening a present from under the Christmas tree, but it could put hundreds of dollars back in your pocket every month and save you thousands over the life of your loan.
That’s because home loan interest rates have plummeted since June 2019, and even in the past month with the most recent Reserve Bank cut. So, if you haven’t switched home loans really recently you’re probably paying more than you need to.
Need convincing? Let’s crunch the numbers.
How much could you save by refinancing?
According to the ACCC, nearly 80% of the Australian home loan market is accounted for by ANZ, Commonwealth Bank, NAB and Westpac.
The thing about the major banks is that they don’t always offer the sharpest rates though. In fact, the average big four variable rate for owner occupiers is currently 3.56% - a decent way above the average variable rate in our database.
Interest rate | Monthly repayment^^ | |
Big four variable rate average | 3.56% | $2,015 |
Mozo variable rate average | 3.31% | $1,962 |
Lowest variable rate in our database^ | 1.99% (2.05% comparison rate*) | $1,693 |
This isn’t just limited to big bank customers either. The sizeable gap between the lowest and average variable rate in our database means that there’s likely to be plenty of opportunity for borrowers to switch and save - especially those who haven’t refinanced in the past few years.
And a difference in rates can equate to substantial savings.
The Mozo home loan repayments calculator shows that a borrower with a $400,000 loan being paid off over 25 years with P&I repayments could save $269/month by switching from the average to lowest rate - that would be $80,549 interest saved over the life of the loan.
RELATED: 19 lenders are offering refinancers up to $3,000 cashback to switch home loans
Ready to compare rates to see if you could benefit from refinancing? Check out the great offers in the table below, or head on over to the Mozo home loan comparison hub for an even larger range of offers.
^Currently available with the Super Saver Variable loan from Reduce Home Loans for owner occupier borrowers with an LVR below 80%.
^^Monthly repayment calculations based on an owner occupier borrower making principal and interest repayments on a loan of $400,000 over 25 years.
Refinance home loans - last updated January 23, 2021
Smart Booster Home Loan
1 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR
interest rate
comparison rate
Initial monthly repayment
1.99% p.a.variable for 12 months and then 2.48% p.a. variable2.47% p.a.CompareCompareSmart Booster Home Loan
A super low introductory rate home loan with no monthly or ongoing fees. Unlimited free redraws and unlimited additional repayments to help you build your equity and own your home sooner. Multiple loan splits available. (Rates revert after introductory period ends). 20% minimum deposit required.
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- Optional - with 0.10% additional interest
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $50,000
- maximum borrowing amount
- $1,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Smart Booster Home Loan
UHomeLoan
Owner Occupier, Principal & Interest
interest rate
comparison rate
Initial monthly repayment
1.75% p.a.
fixed 3 years2.22% p.a.CompareCompareUHomeLoan
$0 fees and easy application with the Mozo Experts Choice Home Lender Bank of the Year.^ Choose between weekly, fortnightly or monthly repayments. 3 year fixed rates are for new Owner Occupier Principal & Interest loans.
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free up to $20,000 p.a.
- Redraw facility
- no
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $100,000
- maximum borrowing amount
- $2,000,000
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- $395 Establishment fee waived for fixed rate loans that settle by 31 March 2020. Receive 1.75% Receive 1.75% 3 year fixed rate when you apply by 26 February 2021 and settle within 90 days.
Read our Mozo Review to learn more about the UHomeLoan
Celebrate Variable Home Loan
<60% LVR, Owner Occupier, Principal & Interest
interest rate
comparison rate
Initial monthly repayment
2.19% p.a. variable2.19% p.a.CompareCompareCelebrate Variable Home Loan
Fast online application with no fees. Free extra repayments and redraw facility. Min 40% deposit. Crowned Best New Home Loan for 2020 by the Mozo Experts.^
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 60.00%
- minimum borrowing amount
- $100,000
- maximum borrowing amount
- $2,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Celebrate Variable Home Loan
Basic Home Loan
Fixed, Owner Occupier, Principal & Interest, LVR 70-80%
interest rate
comparison rate
Initial monthly repayment
2.19% p.a.
fixed 3 years2.53% p.a.CompareCompareBasic Home Loan
Flexible loan structure – create up to six loan accounts with different rate and repayment types. Free redraw from your loan using Macquarie Online.
- Ongoing fees
- $0.00
- Discharge Fee
- $400.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- $750,000
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Basic Home Loan
Fixed Home Loan Special Offer
Owner Occupier, Principal & Interest, <80% LVR
interest rate
comparison rate
Initial monthly repayment
1.89% p.a.
fixed 2 years2.94% p.a.CompareCompareFixed Home Loan Special Offer
Competitive low rates starting from 1.89% (2.94% comparison rate) 2 years fixed for owner occupiers. No monthly account keeping fees & No loan establishment fee.
- Ongoing fees
- $375.00 yearly
- Discharge Fee
- $350.00
- Extra repayments
- yes - free up to $500 per month
- Redraw facility
- no
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- -
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Fixed Home Loan Special Offer
^See information about the Mozo Experts Choice Home Loans Awards
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