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 rateMonthly repayment^^
Big four variable rate average3.56%$2,015
Mozo variable rate average3.31%$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 9 August 2022

Search promoted home loans below or do a full Mozo database search . Advertiser disclosure
  • Smart Booster Home Loan

    2 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    3.60% p.a.variable for 24 months and then 4.00% p.a. variable
    3.96% p.a.

    Already includes July RBA rate increase. New super low introductory rate home loan for two years. Min 20% deposit. No monthly or ongoing fees. Fast settlement times. Mozo award-winning online lender. Friendly, local Australian based team.

  • Unloan Variable

    Owner Occupier, Refinance Only

    interest rate
    comparison rate
    Initial monthly repayment
    3.14% p.a. variable
    3.06% p.a.

    For refinancers only. Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply in as little as 10 minutes.

  • PAYG Home Loan

    Owner Occupier, Principal & Interest, LVR<80%

    interest rate
    comparison rate
    Initial monthly repayment
    3.29% p.a. variable
    3.33% p.a.

    Low variable rate. Ideal for new home buyers or refinancers. Unlimited additional repayments. Unlimited free redraw. Application completely online. Optional 100% offset can be added for $120 p.a.. 20% deposit required.

  • Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    3.79% p.a. variable
    3.79% p.a.

    Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required.


* 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

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.