Lenders unveil ultra low new home loan rates

Kirsty Lamont

02 Jun 2020


The Reserve Bank is expected to keep the cash rate on hold today, but some of Australia’s top lenders are forging ahead with their own home loan rate cuts in a bid to entice bargain hunting refinancers and first home buyers.

CommBank, ING, HSBC and ME are just a few of the big name lenders to cut their fixed rates to new ultra low levels, with ING and HSBC now leading the market with the lowest 2 year fixed rate on offer at 2.09%. Meanwhile online lender Homestar has just cut its variable home loan rate to a new jaw dropping low of 2.39% (variable and comparison rate*).

With the average variable home loan rate sitting at 3.44%, there are now huge savings to be gained by shopping around. Start by comparing some of the top new rates on the market below….



Commonwealth Bank Fixed Rate Home Loan
  • 2.29% fixed rate for 2 years (3.99% comparison rate*)

  • $2000 cashback bonus for refinancers

  • No establishment or ongoing fees

The details:

Enjoy the security of a 2 year fixed package with one of the four banks with Commonwealth Bank's Fixed Rate Home Loan. There are no establishment or ongoing fees to think about, and you'll have the flexibility to make repayments either weekly, fortnightly or monthly. But that's not all! Aside from enjoying the security of a great low rate, refinancers can reap the rewards of a $2000 cashback if they switch by August 3, 2020.


HSBC Fixed Rate Home Loan
  • 2.09% fixed rate for 2 years (2.98% comparison rate*)

  • No upfront application or ongoing service fees

  • Mozo Experts Choice Fixed Home Loan 2020

The details:

HSBC means business with this killer new fixed home loan deal. Going head to head with ING to offer the lowest 2 year fixed home loan rate on the market, HSBC is sure to win over plenty of borrowers eager to save on monthly repayments and protect against future rate rises. There are no upfront or ongoing fees and you can also make free extra repayments of up to $10,000 each year. Available to borrowers with at least 20% deposit. 


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

The details:

Competitive new 1 year fixed rate? Tick. Free extra repayments during fixed rate period, with free redraw option? Double tick. Option to split your loan into fixed and variable portions, and take advantage of a free offset facility on the variable loan? That's a triple tick. With all of these bells and whistles and more, this fixed rate loan from ME is a great option for borrowers wanting to lock in a low rate without having to sacrifice flexibility.


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

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.


ING Fixed Rate Loan
  • 2.09% fixed rate for 2 years (3.77% comparison rate*)

  • Free extra repayments up to $10,000 a year

  • Borrow with just a 5% deposit

The details:

ING is Australia’s most recommended bank, and with offerings like this it’s not hard to see why. This market leading 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, it's available to borrowers with just 5% deposit or more. 

*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.

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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