It's official: Variable home loan rates should start with a '1'

Just 12 months ago, mortgage borrowers around Australia were getting excited about home loan rates starting with a '2'' in front. Now, the nation's top challenger lenders are cementing a new benchmark: the variable home loan that starts with a '1', offering even more opportunities for savvy borrowers to compare and save.

Popular non-bank lender, which has been taking on the banks with low rate online home loans since 2011, is making waves with its 1.85% variable 2 year home loan rate (2.21% comparison rate*) for borrowers with 20% deposit.

Online lender Well Home Loans has a new Equity Release home loan offering a 1.87% variable rate (2.02% comparison rate*) for borrowers with a 60% LVR, while Athena, Nano and Yard are all offering variable rates starting with a '1' for refinancers with low LVRs.

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 LOANS THAT START WITH A '1' - Smart Booster Home Loan
  • 1.85% discount variable rate for 2 years
  • Rolls over to low ongoing 2.25% (2.21% comparison rate*)
  • No monthly fees plus unlimited free redraws and extra repayments
Find out more
The details: has been taking on the banks with low rate loans for close to a decade, and the 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, unlimited free redraw, an optional offset account and a split rate option. What's more, there are no ongoing monthly or annual fees.

Nano - Variable Home Loan
  • 1.99% variable and comparison rate* (refinancers only)
  • Zero upfront or ongoing service fees
  • Free 100% offset sub account
Find out more
The details:

New digital lender Nano is winning over refinancers with an ultra low variable rate for borrowers with a 75% LVR plus unlimited additional repayments, free redraw and a free 100% offset account. There are no upfront or ongoing service fees to pay and Nano's simple online application makes it easy to apply and refinance in a matter of minutes, not weeks. What's more, if you refinance by 29 October you can enter the draw to win your home loan interest free.

Athena - Celebrate Variable Home Loan
  • 1.99% variable and comparison rate*
  • Zero Athena fees + free extra repayments and redraw
  • Available to borrowers with 40% deposit or equity
Find out more

The Athena Celebrate Variable Home Loan boasts one of the lowest variable rates on the market for borrowers with at least 40% equity in their property, and charges zero fees to boot. What’s more, the automatic rate drop feature means the more you pay down your loan, the lower your rate becomes. It's available to refinancers and new borrowers purchasing in capital or major regional cities, with a minimum 40% deposit or equity.

Well Home Loans - Equity Plus
  • 1.87% variable rate (1.90% comparison rate*) - 60% LVR required
  • No ongoing fees ($785 upfront fee)
  • Free extra repayments and redraw plus optional offset account
Find out more

The new Equity Plus home loan from Well offers a jaw dropping variable rate of 1.87% (1.90% comparison rate*) for owner occupier borrowers with at least 60% equity in their property, making it a top choice for either refinance or equity release. Borrowers will also enjoy free online redraw, free extra repayments, an optional offset account for an extra $10 a month and free valuations up to $300. Minimum loan size $200,000.

Yard - Variable Home Loan Special
  • 1.99% variable rate (2.02% comparison rate*) - Apply by 31 October
  • Unlimited additional repayments, free redraw + 100% offset account
  • 30% deposit required
Find out more
The details:

Winner of a Mozo Experts Choice Low Cost Home Loan 2021 Award^, Yard is transforming the home loans process with a super streamlined 100% online approval process and simple, great value home loans. The Yard Variable Home Loan offers all of the features you want (think ultra low rate, free extra repayments and redraw plus an optional offset account for $10 a month) with none of the premium cost. There's an upfront fee of $794 but no ongoing fees.

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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. You can change the loan amount and term in the input boxes at the top of this table. 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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