Leading customer-owned lenders are smashing the big banks on cost post RBA cut
Home loan interest rates are starting to settle following the Reserve Bank’s August rate cut, and top customer-owned lenders are smashing the big banks with leading rates.
Some highlights include Greater Bank, which has the third-lowest variable rate without conditions in the Mozo database for those with a 20% deposit (on 15 September, 2025).
When it comes to fixed rate home loans, we’re seeing a growing number of lenders drop rates below the 5% mark. BCU and P&N Bank are among the customer-owned lenders with leading rates for one- and two-year fixed loans.
Whether you’re looking for a home loan for the first time or you’re planning to refinance, it’s worth paying close attention to leading customer-owned banks. They tend to have lower rates than the Big Four banks, and they’re known for reinvesting profits back into their communities.
Not only that, 50% of the winners in our Experts Choice Awards for Home Loans in 2025 were mutual banks, and 15% were credit unions. If you’re keen to start your search and weigh up some of the best home loans, we’ve got a sampling of top customer-owned banks.
Customer-owned banks on our radar
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Greater Bank Discount Great Rate Home Loan
- Variable rate from 5.19% p.a. (5.20% p.a. comparison rate*)
- Get up to $3,000 cashback when you apply online (T&Cs apply)
- Mozo Experts Choice Awards winner for Low Cost Home Loan in 2025^
- No offset account
Greater Bank is based in Newcastle, and it has one of the most competitive variable rates in our database at 5.19% p.a. (5.20% p.a. comparison rate*). It’s just one of the reasons why it won a Mozo Experts Choice Award for Low Cost Home Loan in 2025.
Sweetening the deal is Greater’s cashback offer, which can land you up to $3,000 back in your pocket when you apply for this loan online (T&Cs apply).
There’s no offset account with this loan, but you’re able to make extra repayments and can redraw those funds at any time. There are no ongoing fees, but you will need to pay a $180 application fee.
BCU Bank OMG Home Loan
- 5.29% p.a. variable rate (5.32% p.a. comparison rate*) for 80% LVR
- Deposit as little as 5% required (interest rates vary)
- Fee-free redraw
- Offset account not included
BCU has been a member-owned bank for just over 50 years, and it prides itself on reinvesting profits back into its communities. BCU operates from Queensland and regional NSW, but you can apply for its home loans from anywhere in Australia.
Those with a 20% deposit can get a variable rate of 5.29% p.a. (5.32% p.a. comparison rate*), but you can apply for a home loan with a deposit as little as 5% (note that higher interest rates apply).
An offset account isn’t included with this loan, but it does come with free redraw so you can take out extra repayments you’ve made without paying a fee.
First Option Bank Simple Home Loan Variable
- 5.24% p.a. variable rate (5.24% p.a. comparison rate*) for 60% LVR
- First $1,000 worth of legal and valuation costs covered for owner-occupied loans (T&Cs apply)
- Mozo Experts Choice Awards winner 2024 & 2025^ for Low Cost Home Loan
- Higher interest rates for 80% LVR
- No offset account
If you’re further into your mortgage and you want to refinance, or you happen to have a larger deposit, this home loan from First Option Bank is worthy of your shortlist. Those with a loan-to-value ratio (LVR) of 60% – that’s a 40% deposit – get a variable rate of 5.24% p.a. (5.24% p.a. comparison rate*).
Plus, it’s won a Mozo Experts Choice Award for Low Cost Home Loan two years running, which means it’s consistently among the lowest rates in the Mozo database for 60% LVR.
While First Option’s rate is excellent for borrowers with 60% LVR, it’s not quite as strong for those with smaller deposits that sit around the 80% LVR bracket. If you want an offset account with your home loan, you’ll need to look elsewhere.
P&N Bank Fixed Rate Home Loan
- 4.75% p.a. for 2 years (5.42% p.a. comparison rate*)
- Free extra repayments up to $25,000 during the fixed period
- Split loan available
- $300 upfront fees
P&N Bank is based in WA, and it has one of the lowest two-year fixed rates in the Mozo database at 4.75% p.a. (5.42% p.a. comparison rate*), available to those with a loan-to-value ratio of less than 80%.
Despite being a fixed rate, you can still get ahead of your home loan by making extra repayments of up to $25,000 during the two-year term – and you won’t pay a penalty. Plus, P&N allows you to split your loan, so you can get the benefits of both rate types.
Keep in mind that there’s a $300 upfront fee, and once the fixed period ends, you’ll automatically rollover onto P&N’s revert rate. Revert rates may not be competitive, so it may be in your best interest to refinance.
* 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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