Lenders cut variable rates to record-breaking lows

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In positive news for Australian home borrowers and refinancers this month, fierce competition amongst lenders has seen the average variable home loan rate drop to a new low of 3.12%.

A mortgage war has erupted amongst rival lenders, driving the continuing downwards trend in variable rates and resulting in a bonanza of jaw-dropping new variable home loan offers for savvy borrowers.

HSBC is the first major bank to offer a variable rate as low as 1.97% (1.98% comparison rate*) for borrowers with 30% deposit or equity, while Macquarie has cut its owner occupier variable rates by 15 basis points and BOQ has a new sub 2.00% variable rate for borrowers who meet its LVR and other criteria. Popular online lenders loans.com.au and Athena have also been making headlines with new low variable rates for borrowers with low LVRs.

So, if you'd like to take advantage of the latest rate cuts to snap up a killer new home loan deal, read on for the Mozo Editor’s rundown of these stellar new offers.


HSBC Discounted Home Value Loan
  • New 1.97% variable rate (1.98% comparison rate*) for borrowers with 70% LVR

  • Enjoy free extra repayments, online redraw and no ongoing fees

  • $3,288 cashback for refinancers - limited time only

The details:

HBSC is the first major bank in the Mozo comparison database to introduce a variable home loan rate this low for borrowers with 30% deposit or equity. The loan comes with all of the features you'd expect from a bank, including free extra repayments, a free online redraw facility, an optional split account and a dedicated relationship manager to guide you through the application process. And if you're refinancing $250,000 or more to HSBC, you can enjoy a generous $3,288 cashback for a limited time.

Macquarie Basic Home Loan
  • Rates starting from just 2.14% variable and comparison rate* (minimum 40% deposit)

  • No application or account management fees

  • Free extra repayments and redraw

The details:

Macquarie is now Australia’s 5th largest home lender, and with offerings like this it’s not hard to see why. The Macquarie Basic Home Loan now has even lower variable rates, plus zero upfront or ongoing fees and a range of flexible features such as free extra repayments, a free redraw facility and a split account option. To start the simple application process, simply request a call on the Macquarie website. Available for loans of up to $5 million.

Bank of Queensland Economy Variable Home Loan
Bank of Queensland
  • Variable rates from just 1.98% p.a. (2.15% p.a. comparison rate*)

  • Bonus $3,000 cashback for refinancers - limited time only

  • Available to borrowers with 70% LVR

The details:

BOQ is a favourite with borrowers looking to find value outside of the big four banks, and for good reason. This jaw-dropping new sub 2.00% variable home loan is available to borrowers who have an LVR of 70% or less and who meet BOQ's debt to income ratio criteria. Loan features include free extra repayments and free redraws for a $10 monthly service fee, plus refinancers can score a bonus $3,000 cashback for a limited only. Minimum loan size $250,000.


loans.com.au Smart Booster Home Loan
  • New 1.85% discounted variable rate for 2 years

  • Rolls over to low ongoing 2.25% (2.21% comparison rate*)

  • Optional offset account for 0.10%

The details:

Popular online lender loans.com.au is a perennial award winner, and with offerings like the Smart Booster Home Loan it's not hard to see why. This low rate, low fee home loan is packed with useful features like unlimited extra repayments, free redraws and an optional offset account to boost your savings. With all this value on offer and no pesky ongoing fees to boot, this loan is a must-see. Minimum 20% deposit required.

Tic:Toc Variable Home Loan
  • 1.89% variable rate (1.90% comparison rate*)

  • No upfront or ongoing fees

  • Optional offset account for $10 a month

The details:

Tic:Toc has made a name for itself as one of Australia's best value online lenders, and this seriously low variable rate is case in point. As you'd expect from a multiple Mozo Experts Choice 2021 Award Winner, the Tic:Toc Variable Home Loan is packed full of other benefits including zero fees, an optional 100% offset account and the flexibility to make free extra repayments towards the loan and redraw those repayments down the track. Available for loans of up to $2 million, minimum 10% deposit.

Athena Celebrate Variable Home Loan
  • New 1.99% variable and comparison rate*

  • Zero Athena fees + free extra repayments and redraw

  • Minimum 60% LVR

The details:

The Athena Variable Home Loan is one of the best value home loans to hit the market for borrowers with at least 40% deposit or equity. This mortgage features a killer variable rate that stays great from start to finish and zero upfront or ongoing fees. On top of that, to reward borrowers for paying down their home loan, Athena will now automatically lower your rate as you pay down your loan. Available to home buyers and refinancers buying an established property in a capital or major regional city.

*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 the amount and term you entered.

**Initial monthly repayment figures are estimates only, based on the advertised rate, and a loan of $500,000 repaid over 25 years. 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 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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