The low rate home loan hit-list: May 2025
With home loan rates coming down following the May rate cut, there's never been a better time to compare how much you could save on your mortgage repayments.
Our analysis reveals that there is a huge difference between the average home loan rate and the lowest in our database. In fact, the average Big Four bank borrower with a $400k owner occupier home loan could save up to $6,684 a year by switching^^.
Mozo compares over 450 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, many of which have reduced rates in recent weeks.
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….
Low rate home loans in Australia: May 2025
Unloan - Variable Home Loan
- Rate cut now live!
- 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.
NRMA Insurance Variable Home Loan
- 5.78% p.a. variable rate (5.82% p.a. comparison rate*)
- Zero application fees to pay
- Free additional repayments and online redraw
Enjoy a competitive interest rate on up to a 30 year loan term with the NRMA variable home loan. There is no application fee to pay and you can make unlimited additional repayments to pay your home loan off sooner. You’ll get free online redraw and have the option to add a 100% offset account for a small fee. 10% minimum deposit. Fees & charges apply, Australian Credit Licence 237879 is held by Bendigo and Adelaide Bank Limited, the credit provider.
UBank - Neat Home Loan
- Variable rates from 5.84% (5.86% 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 5.79% p.a. (5.83% 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
- 5.79% p.a. variable rate (5.82% 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
NRMA Insurance 2 Year Fixed Home Loan
- 5.74% p.a. 2 year fixed rate (5.81% p.a. comparison rate*)
- Zero application fees to pay
- Free additional repayments up to $20,000 per year
Secure a competitive interest rate on up to a 30 year loan term with the NRMA 2 year fixed home loan. There is no application fee to pay and you can make unlimited additional repayments for up to $20,000 per year. You’ll get free online redraw and have the option to add a 100% offset account for a small fee. Fees & charges apply, Australian Credit Licence 237879 is held by Bendigo and Adelaide Bank Limited, the credit provider.
SWS Bank Premium 'Special' Fixed Rate
- Competitive 3 year fixed rate 4.99% p.a. (6.15% 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 2 year Fixed Rate Home Loan
- 5.69% p.a. 2 year fixed rate (6.00% 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.
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Want to compare more home loans? View the latest mortgage rates from over 80 lenders at Mozo's home loan comparison hub.
^^ Based on the Mozo database, an average big four variable rate of 6.60% p.a. vs leading variable rate of 5.60% p.a., a loan amount of $500,000, loan to value ratio (LVR) of 80%, a 25 year term, Principal & Interest loan, as at 7 May,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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