Lenders cut variable rates to record-breaking lows

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 3.05%.

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.

Athena just cut its variable rates for the 9th time in 3 years, releasing a 1.89% variable home loan (1.89% comparison rate*) for borrowers with at least 40% deposit or equity. Macquarie recently cut its owner occupier variable rates by 15 basis points while HSBC has a new sub 2.00% variable rate for borrowers with 30% deposit or equity.

Digital lenders 86 400 and OneTwo have also been making waves with new low variable rates for refinancers and 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.


Athena - Celebrate Variable Home Loan
  • 1.89% p.a. variable and comparison rate*
  • Zero Athena fees + free offset, extra repayments and redraw
  • Available to borrowers with 60% LVR
The details:

Variable home loan rates don’t get much lower than this stellar new offer from Athena. The Celebrate Variable Home Loan has zero fees but is jam-packed with features like a free 100% offset account plus free extra repayments and redraw. What’s more, the automatic rate drop feature means the more you pay down your loan, the lower your rate becomes. Available to refinancers and new borrowers purchasing in capital or major regional cities, with a minimum 40% deposit or equity.

OneTwo - Variable Rate Home Loan
  • 1.89% variable rate (1.79% p.a. comparison rate*)
  • Zero fees + score discounts as you pay off your loan
  • $2,000 refinance cashback for loans over $250K (t&cs apply)
Find out more

The details:
Australia’s newest lender, OneTwo Home Loans, took out a Low Cost Home Loan Award^ for this innovative variable home loan that combines a low rate and zero fees with features that reward you for paying down your loan. Each time you pay off 5% of your original loan, OneTwo will drop your rate by 0.03% (discount capped at 0.15%). On top of this, OneTwo will match any extra repayments made in the first 6 months (up to $2,500).  Available to refinancers in metro NSW and Victoria. 80% LVR.

86 400 - Neat Home Loan
  • Variable rates from just 1.89% (1.90% comparison rate*) - min 40% deposit
  • No Lenders Mortgage Insurance for borrowers with 15% deposit / equity
  • Fast and paperless online application process
Find out more

The details:
Australia's first Smart Bank 86 400 has ticked a lot of boxes with a low rate, low fee digital home loan for borrowers looking to keep their costs to a minimum. The Neat Home Loan rewards borrowers with lower loan-to-value-ratios (LVRs) with its most competitive rates, while also being light on fees. There's a $250 settlement fee but no application fees or ongoing fees. Features include free extra repayments and redraw, and repayments can be made weekly, fortnightly or monthly.


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.

Newcastle Permanent - Special Real Deal Home Loan
  • 2.22% p.a. variable rate (2.26% p.a. comparison rate*)
  • Bonus $2,000 cashback for refinancers - limited time only
  • Available to borrowers with 80% LVR
Find out more
The details:

Newcastle Permanent is a popular option for borrowers looking to find value outside of the big four banks, and for good reason. In addition to a competitive new variable rate, you'll also enjoy $2,000 cashback when you refinance your home loan from another financial institution when you apply by 30 June 2022 (t&cs apply)

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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, 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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