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

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 loans.com.au, 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 loans.com.au 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'
loans.com.au 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:
Loans.com.au 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.
TOP FIXED RATE BANK HOME LOAN
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.
ULTRA LOW NEW VARIABLE RATE
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.
^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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