Lenders slash home loan rates despite RBA hold

Home borrower and refinancer alert: New Mozo research reveals that lenders are slashing home loan rates even though the Reserve Bank has elected to keep the official cash rate on hold again for the third month in a row.

Fixed rates have hit new record lows, after a whopping 578 cuts in the past two months. HSBC and ING are leading the charge, cutting their 2 year fixed rates to the lowest on the market at just 2.09%.

Some of Australia’s most competitive lenders are also slashing variable rates, with Homestar and Tic:Toc now offering a variable rate of 2.39% for owner occupiers. That’s currently the lowest in the Mozo comparison database. 

With lenders competing so hard for borrower attention, now is the ideal time to take advantage of the latest wave of rate cuts to find yourself a better value home loan. Start by comparing some of the top new rates on the market below…


HSBC - Fixed Rate Home Loan
  • 2.09% fixed rate for 2 years (2.98% comparison rate*)
  • No upfront application or ongoing service fees
  • Free extra repayments up to $10,000 a year
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The details:

This market leading new 2 year fixed rate home loan lets you guarantee your monthly repayments while still taking advantage of flexible features like the ability to make free extra repayments up to $10,000 a year and split your loan between fixed and variable rates. What's more, there are no upfront or ongoing fees and you'll get a relationship manager to help you through the application process. Available to borrowers with 20% deposit for loans of $50,000 or more. 

Mortgage House - Switch and Save Special - Fixed Rate Home Loan
  • 2.19% fixed rate for 3 years (2.65% comparison rate*)
  • Free extra repayments and redraw facility
  • No ongoing fees
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The details:

Mortgage House has just dropped this stellar 3 year fixed rate special, offering long term protection against sudden rate rises and peace of mind over your mortgage repayments. In addition to an ultra low fixed rate, you'll also enjoy flexible home loan features like free additional repayments and a redraw facility. What's more, there are no ongoing package fees, meaning you pay less and can actually pay off more of your home loan. Available to borrowers with a 20% deposit for loans of $150,000 or more.

Homestar - Star Essentials Home Loan
  • New low 2.39% variable and comparison rate*
  • No ongoing fees plus free extra repayments and redraw facility
  • Best Low Cost Home Loan - Mozo Experts Choice Awards 2020
Find out more
The details:

Boasting one of the lowest variable rates on the market plus no ongoing fees, this super sharp loan also comes neatly packaged with a number of great features including unrestricted extra repayments and free online redraws. If saving thousands on your mortgage is your thing, then Experts Choice award winner Homestar might just be your lender of choice. This popular Australian non-bank lender has been offering low-cost home loans since 2004, and the Star Essentials home loan is no exception.

ME - Flexible Home Loan
  • 2.39% fixed rate for 1 year (3.45% comparison rate*)
  • Extra repayments up to $30K during fixed rate period
  • Option to split into fixed and variable, with free offset on variable portion
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The details:

If you like the sound of being able to lock in a low rate without having to sacrifice loan flexibility, this competitive new offer from ME could be for you. Flexible loan features include free extra repayments up to $30,000 during the fixed rate period, free redraws above $500 when you're ahead on repayments, a split loan option and a free offset facility on the variable portion of the loan. Available to borrowers with a 20% deposit.

UBank - UHomeLoan - Discount Offer
  • 2.59% variable & comparison rate*
  • $0 annual or upfront application fee
  • Free extra repayments and redraw facility
Find out more
The details:

Borrowers with a 20% deposit can apply for this cracking variable loan and enjoy no upfront or ongoing fees. You can choose to make monthly, fortnightly or weekly repayments to suit your budget plus take advantage of free extra repayments and redraw. No wonder it was a slam dunk for a Best Low Cost Home Loan Award. UBank is backed by NAB and its UHomeLoan is available for loans of $200,000 or more.

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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. 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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