Lenders unveil ultra low new home loan rates

Kirsty Lamont

03 Aug 2020

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The Reserve Bank has kept the cash rate on hold again this month, 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.

ING, HSBC, loans.com.au, Suncorp and UBank are just a few of the big name lenders to cut their rates to new ultra low levels, with HSBC now leading the market with the lowest 2 year fixed rate on offer at 2.09%. Not to be left out, popular online lenders like loans.com.au and UBank have been busy cutting their variable and fixed rates to jaw dropping new lows.

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….


TOP NEW HOME LOAN OFFERS SEPTEMBER 2020 

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ING Fixed Rate Loan
  • 2.19% fixed rate for 2 years (3.79% 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 cracking 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.

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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

The details:

This market-leading 2 year fixed rate home loan from 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 choose to make free extra repayments of up to $10,000 each year and split your loan with one of HSBC's competitive variable loans. It's available to borrowers with at least 20% deposit. 

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loans.com.au Smart Home Loan 80
  • New 2.48% variable rate (2.50% comparison rate*)

  • Free extra repayments and unlimited redraw

  • No application or ongoing fees

The details:

This super low new variable rate from popular online lender loans.com.au is a bona fide mortgage crusher, and they've done away with pesky fees as well. With unlimited free extra repayments, free redraw and a split rate option, you'll enjoy lots of flexibility without having to pay a premium for bells and whistles like an offset account. If you’re borrowing $1 million or less and have at least a 20% deposit saved up, the award-winning Smart Home Loan really is a smart choice.

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Suncorp Fixed Home Loan Special Offer
  • 2.29% fixed rate for 2 years (3.28% comparison rate*)

  • Free extra repayments - up to $500 each month

  • $2,000 cashback bonus - limited time offer

The details:

If you like the idea of being rewarded for locking in an ultra low rate with a trusted bank lender, this fixed home loan from Suncorp ticks all the right boxes. With one of the lowest fixed rates in the Mozo database, plus no establishment fee and up to $500/month in extra repayments, this one’s a real winner. What’s more, you’ll even receive a $2,000 cash bonus when you take out a loan of $250,000 or more (T&Cs apply). 

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UBank UHomeLoan
  • New 2.14% fixed rate for 3 years (2.41% comparison rate*)

  • Free extra repayments up to $20,000 p.a.

  • Zero ongoing fees

The details:

Fixed rates don’t get much lower than those available with UBank’s UHomeLoan Fixed offer, with rates as low as 2.14% (2.59% comparison rate*) for borrowers happy to lock in for three years. Owner-occupier borrowers will be able to grab that rate on loans between $100,000 and $2,000,000 and while there is an initial $395 application fee to consider, there are no other fees to worry about. UBank even lets customers make extra repayments towards the loan of up to $20k per year, for free!

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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.

*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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