The low rate home loan hit-list: August 2025
Home loan rates have been falling following the RBA’s cut in May and if the experts are right we could be in for another rate cut this month. This means it’s a good time to see how much you could save on your mortgage repayments by switching to a better rate.
Our analysis reveals there is a huge difference between the average home loan interest rate and the lowest in our database. In fact, the average Big Four bank borrower with a $500,000 owner occupier home loan could save up to $3,000 in their first year by switching^^.
Mozo compares over 400 home loans from more than 90 lenders, and our experts have done the hard work for you by scouring our database to uncover some top home loan deals in the market right now.
Read on for our Mozo Expert reviews of some of this month’s low cost home loans and see how much you could be saving, and if you don’t find what you’re looking for, you can compare all home loans in our database.
Low rate home loans in Australia: August 2025
Unloan Variable Home Loan
- 5.49% p.a. variable rate (5.40% p.a. comparison rate*)
- Zero upfront or ongoing fees
- Low cost home loan winner – Mozo Experts Choice Awards 2023, 2024 & 2025^
Unloan’s Variable Home Loan has taken out a low cost home loan award for an impressive third year running in the Mozo Experts Choice Awards^. Built by CommBank, Unloan offers owner occupiers a super low 5.49% p.a. variable rate (5.40% p.a. comparison rate*) along with a loyalty discount that shaves 1 basis point off your interest every year for up to 30 years. Loan features include free extra repayments and redraw, and there are no pesky fees to pay. Available for loans of up to $10M. Minimum 20% deposit.
Greater Bank Discount Great Rate Home Loan
- Variable rate from 5.49% p.a. (5.50% p.a. comparison rate*)
- Get up to $3,000 cashback when you apply online (T&Cs apply)
- Mozo Experts Choice Awards winner for Low Cost Home Loan in 2025^
Greater Bank has one of the most competitive variable rates in our database at 5.49% p.a. (5.50% p.a. comparison rate*), and it also won a Mozo Experts Choice Award for Low Cost Home Loan.
Sweetening the deal is Greater’s cashback offer, which can land you up to $3,000 back in your pocket when you apply for this loan online (T&Cs apply).
There’s no offset account with this loan, but you’re able to make extra repayments and can redraw those funds at any time. There are no ongoing fees, but you will need to pay a $180 application fee.
Virgin Money Lite Variable Home Loan
- Variable rate from 5.54% p.a. (5.56% p.a. comparison rate*) up to 80% LVR
- Earn Virgin Money Points every month
- No ongoing fees
This basic home loan from Virgin Money has perks as well as great features like no set up or ongoing fees. Like being rewarded for paying off your home loan? You could earn 1000 Virgin Money Points each month just for making your home loan repayments on time. Interest rates are scaled depending on your loan-to-value ratio with the best option for those with 20% or more equity or deposit at 5.54% p.a. (5.56% p.a. comparison rate*). You can choose the repayment schedule that best suits you - weekly, fortnightly or monthly and there is also the option to split your loan between variable and fixed rates. This loan doesn’t have an interest offset but you can make extra repayments at any time fee free and dip into those funds whenever you need to. There is a $150 loan settlement fee and Virgin Money cover valuation costs up to $300.
Ubank Neat Home Loan
- Variable rates from 5.64% (5.66% comparison rate*) – min 40% deposit
- Fast and paperless online application process
- Free extra repayments
Ubank has made a name for itself as one of Australia’s best-value online lenders, and its new Neat Home Loan is a case in point. This low cost variable home loan rewards borrowers with lower loan-to-value-ratios (LVRs) with competitive rates, while also being light on fees. Features include free extra repayments and redraw. Plus, Ubank is backed by NAB so you get all of the savings an online lender can offer, as well as the security of big bank backing.
Loans.com.au Variable Home Loan 90
- Variable interest rate from 5.54% p.a. (5.58% p.a. comparison rate*) for LVR < 90%
- No application fees to pay
- First Home Buyer Loan winner – Mozo Experts Choice Awards 2025^
If you’re in the market for a competitive rate on a variable home loan, online lender loans.com.au has come through with the goods. There are no application fees to pay and you only require a 10% deposit to get started. You can borrow between $50,000 to $2,000,000, plus, you’ll have the freedom to make free extra repayments, and redraw them without penalty too. $300 settlement fee applies. (T&Cs apply).
IMB Bank Budget Home Loan
- 5.54% p.a. variable rate (5.57% p.a. comparison rate*) for borrowing up to 80% loan to value ratio
- Up to $4,000 cashback (T&Cs apply)
- Unrestricted additional repayments
Enjoy the benefits of a discounted variable home loan from IMB and score up to $4,000 cashback in your pocket once approved (T&Cs apply). You’ll get a life-of-loan discount off IMB’s standard variable interest rate and the ability to make unrestricted additional repayments to pay your mortgage off sooner. Make free Internet and Mobile Banking redraws (T&Cs apply) and pay no monthly fees on a flexible loan term of up to 30 years. No offset account.
Fixed Rate Deals
BOQ Discount Fixed Rate Home Loan
- 4.89% p.a. for 2 years (5.62% comparison rate*)
- $2,000 cashback for new loans refinanced from another lender until 30 September 2025 (T&Cs apply)
- Up to $10,000 extra repayments annually
Want the certainty of fixed repayments, but with a bit of extra flexibility? BOQ’s Discount Fixed Rate Home Loan lets you lock in a rate for two to five years, with a sharp 2 year 4.89% p.a. interest rate (5.62% p.a. comparison rate*) that ranks among the lowest in our database for borrowers with at least 20% deposit or equity. You can still make up to $10,000 in extra repayments each year and choose a repayment schedule that works for you. Refinance from another lender by 30 September 2025 and you can pocket $2,000 cash back (T&Cs apply). There’s no application fee, but there is a $150 settlement fee and an ongoing $10 monthly service fee to keep in mind.
SWS Bank Premium 'Special' Fixed Rate
- Competitive 3 year fixed rate 4.99% p.a. (5.79% p.a. comparison rate*)
- Free redraw
- Available on loans from $800k up to $2.5 million
Lock in a competitive fixed interest rate and enjoy peace of mind for the fixed period with SWS Bank’s Premium Special Fixed Rate Home Loan. Get the flexibility of loan split options and redraw facility. There are no application, ongoing or banking fees to pay and first home buyers and refinancers can apply with a 20% deposit and a speedy online application. No offset account. 800k minimum loan up to $2.5 million. Other fees may be applicable. T&Cs apply.
IMB Bank Fixed Rate Home Loan (2 years)
- 5.09% p.a. 2 year fixed rate (5.69% p.a. comparison rate*)
- Up to $4,000 cashback (T&Cs apply)
- Free Internet and Mobile Banking redraws
Get the peace of mind of a competitive fixed rate home loan for 2 years with IMB and score up to $4,000 cashback in your pocket once approved (T&Cs apply). You have the freedom to make up to 12 months repayments in advance without penalties, plus you’ll have free Internet and Mobile Banking redraws (T&Cs apply). There’s only a 5% deposit required and you have the flexibility to split your home loan as required. No offset account.
BCU Fixed Rate Home Loan
- 5.29% p.a. for 2 years (5.67% p.a. comparison rate*)
- No establishment or annual ongoing fee
- Just 5% deposit required
Member-owned BCU’s fixed rate home loan has no establishment fee, no ongoing annual fee, and competitive rates. You can lock in up to 5 years (rates may vary) and there is an option to make weekly, fortnightly or monthly repayments. During the fixed period you can also make extra repayments of up to $25,000. The loan is also available with just a 5% deposit. Other fees may apply. No offset account.
^^ Based on the Mozo database, an average Big Four variable rate of 6.35% p.a. vs leading variable rate of 5.39% p.a., a loan amount of $500,000, loan to value ratio (LVR) of 80%, a 25 year term, principal & interest loan, as at 1 July, 2025.
* 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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