The low rate home loan hit-list: May 2025

By Mozo Editorial · · 1 min read
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Photo montage of big 4 banks

With home loan rates finally coming down following the February 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 $3,684 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.

See below some of this month's low cost home loans and find out how much you could be saving...

Low rate home loans in Australia: May 2025

  • Unloan Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    5.49 % p.a.
    Variable
    Comparison rate
    5.40 % p.a.
    Go to site
    • The first home loan with an increasing discount (conditions apply)
    • No application or banking fees
    • Built by CommBank

  • Variable Basic Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    5.53 % p.a.
    Variable
    Comparison rate
    5.57 % p.a.
    No Partner link

  • Neat Home Loan

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Redraw available
    Interest rate
    5.64 % p.a.
    Variable
    Comparison rate
    5.66 % p.a.
    Go to site
    • Free extra repayments
    • Easy redraw facility
    • No annual fee to pay

  • Variable Home Loan 90

    • Owner occupier
    • Principal & Interest
    • 10% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.54 % p.a.
    Variable
    Comparison rate
    5.58 % p.a.
    Go to site
    • No monthly or ongoing fees
    • Option to add an offset for 0.10% p.a.

  • Budget Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    • Cashback
    Interest rate
    5.54 % p.a.
    Variable
    Comparison rate
    5.57 % p.a.
    Go to site
    • Get up to $4,000 cashback (T&Cs apply)
    • Split loan available

  • Fixed rate deals

  • Fixed Basic Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    5.29 % p.a.
    Fixed 2 years
    Comparison rate
    5.52 % p.a.
    No Partner link

  • Optimum Fixed Rate Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    5.34 % p.a.
    Fixed 3 years
    Comparison rate
    5.89 % p.a.
    No Partner link

  • Fixed Home Loan

    • Fixed rate
    • Investor
    • Principal & Interest
    • 10% min deposit
    • Redraw available
    • Cashback
    Interest rate
    5.49 % p.a.
    Fixed 2 years
    Comparison rate
    6.00 % p.a.
    Go to site
    • Get up to $4,000 cashback (T&Cs apply)
    • Up to 12 months repayments in advance without penalties
    • Split loan available

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 7.15% p.a. vs leading variable rate of 5.89% p.a., a loan amount of $400,000, loan to value ratio (LVR) of 80%, a 25 year term, Principal & Interest loan, as at 9th of Jan 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

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.

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