It's official: Home loan rates now start with a '1'


28 Jul 2020

Kirsty news headline 2 web content

Just when we were starting to get used to home loan rates that start with a '2', Australia's challenger lenders are now rolling out home loan rates with a '1' in front, offering even more opportunities for savvy borrowers to compare and save.

Popular online lender, which has been taking on the banks with low rate online home loans since 2011, is making waves with a new 1.99% variable 1 year home loan rate (2.55% comparison rate). Tasmanian-based lender Bank of Us has also dropped its 1, 2 and 3 year fixed home loan rates below 2%.

While we're yet to see other lenders go this low, HSBC is now offering a 2 year fixed home rate under 2.10%, while the likes of UBank and Homestar have both dropped their already competitive variable rates below 2.50%.

These ultra low rates offer potential savings of tens of thousands of dollars for borrowers who are prepared to shop around. Read on for the Mozo Expert guide to the new headline-grabbing home loan with a '1' and our round-up of the other top new rates on the market right now.

THE HOME LOAN THAT STARTS WITH A '1' Smart Booster Home Loan
  • 1.99% discount variable rate for 1 year

  • Rolls over to low ongoing 2.57% (2.55% comparison rate*)

  • No monthly fees plus unlimited free redraws and extra repayments

The details: has been taking on the banks with low rate loans for close to a decade, and the new Smart Booster Home Loan might just be their best yet. Available to borrowers with a 20% deposit, this headline-stealing home loan is designed to help you boost your savings, build your equity and own your own home, sooner. Flexible features include free extra repayments and redraw, multiple loan split options and the choice of weekly, fortnightly or monthly repayments. What's more, there are no ongoing monthly or annual fees.


HSBC Fixed Rate Home Loan
  • 2.09% fixed rate for 2 years (2.98% comparison rate*)

  • No upfront application or ongoing service fees

  • Free extra repayments up to $10,000 a year

The details:

This market leading new 2 year fixed rate home loan lets you guarantee your monthly repayments while still taking advantage of flexible features like the ability to make free extra repayments up to $10,000 a year and split your loan between fixed and variable rates. What's more, there are no upfront or ongoing fees and you'll get a relationship manager to help you through the application process. Available to borrowers with 20% deposit for loans of $50,000 or more. 


Tic:Toc Variable Home Loan
  • 2.39% variable rate (2.40% comparison rate*)

  • Optional offset account

  • 2020 Mozo Experts Choice Online Lender of the Year

The details:

Winner of the Mozo Experts Choice Online Lender of 2020 award, Tic:Toc is transforming the home loans process with a super streamlined 100% online approval process and simple, great value home loans. The Tic:Toc Variable Home Loan offers all of the features you want (think ultra low rate, free extra repayments and redraw plus an optional offset account) and none you don't like annoying fees.

*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 the amount and term you entered.

**Initial monthly repayment figures are estimates only, based on the advertised rate, and a loan of $500,000 repaid over 25 years. 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 loans Awards

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

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