Top lenders unveil ultra low new home loan rates

Mozo

02 Jul 2021

Falling house percents article image content

The Reserve Bank has so far kept the cash rate on hold in 2021, 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 home buyers.

Macquarie, HSBC, loans.com.au and Athena are just a few of the rival lenders to drop their rates to new ultra low levels in recent weeks. Macquarie has cut variable rates by 15 basis points for low LVR borrowers, while HSBC now has the equal lowest variable rate of any major bank at 2.19% (2.20% comparison rate*) for borrowers with 30% deposit or equity.

Not to be left out, popular online lenders have also been wielding the scissors, led by loans.com.au and Athena with its new 1.99% p.a. comparison rate* for borrowers under 60% LVR. According to the mortgage challenger, this is now the lowest fee-free variable rate in the country.

With the average variable home loan rate sitting at 3.22%, 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 JULY 2021

Macquarie Basic Home Loan
Macquarie
  • Rates starting from just 2.34% 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.

loans.com.au Smart Booster Home Loan
loans.com.au
  • 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 its new Smart Booster Home Loan delivers outstanding value. This low rate, low fee variable 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 30% deposit required.

HSBC Home Value Loan
HSBC
  • New 2.19% variable rate (2.20% comparison rate*) for borrowers with 70% LVR

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

  • $3,288 cashback for refinancers - Apply by 31 July

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.

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

  • Mozo Experts Choice Home Loan Innovation Winner 2021^

  • 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.

Bank of Queensland Discount Fixed Rate
Bank of Queensland
  • 1.89% fixed rate for 2 years (3.05% comparison rate*)

  • Bonus $3,000 cashback for refinancers - Apply by 29th August

  • Mozo Experts Choice Fixed Rate Home Loan 2021^

The details

BOQ is a favourite with borrowers looking to find value outside of the big four banks, and for good reason. The BOQ Discounted Fixed Home Loan lets you lock in a super low rate for two years while still having the flexibility to pay down your mortgage faster with free extra repayments of up to $5,000 a year. Plus, refinancers who apply before the 29th of August can score a bonus $3,000 cashback. Minimum loan size $250,000, 80% LVR or less.

*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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