The low rate home loan hit-list: December 2025
Competition in the home loan market has been heating up in recent months, especially around fixed rates, and 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 $3,500 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: December 2025
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Unloan Variable Home Loan
- Variable rate from 5.19% p.a. (5.10% 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 5.19% p.a. variable rate (5.10% 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.
Loans.com.au Variable Home Loan 90
- 5.29% p.a. variable rate (5.33% 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
- 5.29% p.a. variable rate (5.32% 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. Plus, there’s only a 5% deposit required (though higher rates will apply) and the ability to split your home loan. No offset account.
^^ Source: Mozo database on 26 September, 2025. Average Big Four variable rate of 6.13% p.a. vs leading variable rate of 5.14% p.a., for owner occupiers with a 20% deposit (80% LVR), making principal and interest repayments on a $500,000 home loan over 25 years.
* 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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