June home loan snapshot: Bendigo, Citi and Macquarie lower variable rates


Winter’s finally here and so too are the colder days and longer nights. For many of us that means taking life at a slower pace and indulging in the pleasures of food and warmth that come indoors.

There’s no slowdown on the home loan rate front though! The latest edition of the Mozo Banking Roundup, which was released this morning, shows that lenders are continuing to chop and change both fixed and variable home loan rates at a steady pace.

So what’s changed and how does your own rate stack up? Find out in our latest snapshot.

Variable rate competition intensifies

Earlier last month we reported on the renewed rise in variable rate cuts following a long period in which attention from lenders was largely focused on fixed rate cuts. This trend has continued to play out in recent weeks, with a number of additional lenders announcing reductions to variable home loan rates. Some of the highlights include:

  • Athena cut its AcceleRATES Variable Home Loan by 10-20bp for owner occupiers, meaning rates are as low as 1.99% (1.99% comparison rate*) for <60% LVR or 2.19% (2.08% comparison rate*) for <80% LVR
  • Bendigo Bank reduced its Express Home Loan by 50bp, meaning the lowest rate on offer to owner occupiers (<90% LVR) is 2.19% (2.36 comparison rate*)
  • Citi took 15bp off its Basic Variable loan which means its lowest rate for owner occupiers (<80% LVR) is 2.29% (2.34% comparison rate*)
  • Homestar cut its Star Essentials Home Loan by 10bp, meaning owner occupiers (<80% LVR) can access rates as low as 2.04% (2.09% comparison rate*)
  • Macquarie reduced its Basic Home Loan by 15bp to 2.49% (2.49% comparison rate*) for owner occupiers (<80% LVR)
  • Tic:Toc cut its owner occupier (<90% LVR) Variable Home Loan rate by 15bp to 2.04% (2.05% comparison rate*) and its investor (<90% LVR) rate by 14bp to 2.19% (2.20% comparison rate*)

As a result of the various cuts the average variable home loan rates^^ in the Mozo database for owner occupiers (3.26%) and investor (3.66%) making principal and interest repayments both dropped to the lowest points recorded since we began tracking in 2015.

Competition at the lowest end of the market has also become even fiercer. There are now 41 lenders in our database with a headline variable rate below 2.50% for owner occupiers (<80% LVR), though as the table below shows, there are even lower rates available.

Lowest variable rates - Mozo database (June 1, 2021)^^

Variable rateLenderLoan
1.99% (2.05% comparison rate*)Reduce Home LoansSuper Saver Variable
2.04% (2.05% comparison rate*)Tic:TocVariable Home Loan
2.04% (2.09% comparison rate*)HomestarStar Essentials
2.09% (2.09% comparison rate*)Pacific Mortgage GroupStandard Variable
2.17% (2.17% comparison rate*)FreedomLendVariable Home Loan

Fixed rate divide continues

For the past few months we’ve been witnessing a growing divide between shorter (1-3 years) and longer (4-5 years) fixed rate home loans, with the former remaining relatively stable and the latter increasing.

According to the Mozo Roundup that trend continued to play out in May, with the likes of Citi, Commonwealth Bank, Greater Bank, ING, Macquarie, NAB, Qudos Bank, Tic:Toc and Well Home Loans among the lenders to have lifted 4 or 5-year fixed rates in the past month.

ING was also one of the more notable lenders to reduce its shorter rates. The bank shaved 15-35bp off of its 1-3 year Fixed Rate Loan (with Orange Advantage) offer, with the lowest rate now 1.84% (3.73% comparison rate*) for owner occupiers (<80% LVR) for two years.

So what’s the landscape looking like at the sharpest end of the fixed rate market? Here’s a snapshot of the lowest fixed rates currently on offer to owner occupiers in the Mozo database, as well as our owner occupier averages for 1-5 year terms:

Lowest and average fixed rates - Mozo database (June 1, 2021)^^

TermRate leaderFixed rateAverage
1-yearbcu1.67% (3.84% comparison rate*)2.32%
2-yearbcu1.78% (3.67% comparison rate*)2.27%
3-yearCredit Union SA1.79% (3.33% comparison rate*)2.31%
4-yearBankVic1.95% (2.72% comparison rate*)2.49%
5-yearUBank2.24% (2.33% comparison rate*)2.70%

The Reserve Bank board is also announcing its monthly Monetary Policy Decision this afternoon which always has the potential to create some upheaval in the home loan rate market, though it's generally thought that it will continue to stay its hand for the time being.

To stay up to date with that decision plus the latest property stories check out the Mozo home loan news hub, or if you’re interested in comparing loans then you’ll want to take a look at our home loan comparison tables for the latest rates.

Compare variable rate home loans - last updated 13 August 2022

Search promoted home loans below or do a full Mozo database search . Advertiser disclosure
  • Variable Home Loan 70

    variable rate
    comparison rate
    Initial monthly repayment
    3.10% p.a.
    3.12% p.a.

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  • Unloan Variable

    Owner Occupier, Refinance Only

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

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

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

  • Smart Booster Home Loan

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

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

  • PAYG Investor Loan

    Investment, Principal & Interest, LVR<80%

    variable rate
    comparison rate
    Initial monthly repayment
    3.64% p.a.
    3.68% p.a.

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


^^Interest rates are based on an owner occupier making principal and interest repayments on a $400,000 loan with an 80% LVR. For more information on average mortgage rates, check out our dedicated Australian home loan statistics page.

* 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

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