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
Get product update alerts
We’ll keep an eye on rates, fees, and product updates and send you an email as soon as we see a change. Notify me for changes on:
You're all set!
We’ll keep you in the loop and email you as soon as there are any product changes.
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.
Greater Bank Discount Great Rate Home Loan
- Variable rate from 5.19% p.a. (5.20% 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 5.19% p.a. (5.20% 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 5.19% p.a. (5.21% 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 1,000 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 (LVR) with the best option for those with 20% or more equity or deposit at 5.19% p.a. (5.21% 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.
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).
Fixed rate deals
Get product update alerts
We’ll keep an eye on rates, fees, and product updates and send you an email as soon as we see a change. Notify me for changes on:
You're all set!
We’ll keep you in the loop and email you as soon as there are any product changes.
BCU Fixed Rate Home Loan
- 5.09% p.a. for 2 years (5.43% p.a. comparison rate*)
- No monthly or annual fees
- 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.
^^ 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
Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.
While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.