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

By Tom Watson · · 3 min read
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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.

Home loan comparisons on Mozo

Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can compare more home loans here.
Last updated 27 July 2024 Important disclosures and comparison rate warning*

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  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    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 online in minutes.

  • Basic Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.

  • Neat Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.11 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.

  • Special Real Deal Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <80%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.13 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    Refinancers or first home buyers pay no monthly or annual fees. Up to $3,000 cashback when you complete your home loan application online. $2,000 cashback on loans ≥$250K; or $3,000 cashback on loans ≥$500K. LVR ≤80%. T&Cs and credit criteria apply.

  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    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 online in minutes.

  • OMG Home Loan

    • Owner Occupier
    • Principal & Interest
    • <60% LVR
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    6.02 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    BCU Bank’s OMG owner occupied home loan offers a variety of great low rates depending on your deposit. Save with no ongoing annual fees. Access your extra payments when you need to through the redraw facility. Pre-approval valid for 3 months.

  • Express Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <90%
    Interest rate
    6.01 % p.a.
    Variable
    Comparison rate
    6.14 % p.a.
    Initial monthly repayment
    $3,001
    Go to site

    Get online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.

  • Neat Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.11 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.

  • Special Real Deal Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <80%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.13 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    Refinancers or first home buyers pay no monthly or annual fees. Up to $3,000 cashback when you complete your home loan application online. $2,000 cashback on loans ≥$250K; or $3,000 cashback on loans ≥$500K. LVR ≤80%. T&Cs and credit criteria apply.

  • Basic Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.

  • Flex Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.38 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Competitive variable rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.

  • Offset Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.39 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.

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^^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. 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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