Interest in low-rate home loans is surging as the Spring property market heats up, lenders cut rates to jaw-dropping new lows and savvy borrowers looking to save money on their home loan refinance in record numbers.
And with so many lenders cutting rates, offering cashbacks and introducing new offers for refinancers, it’s no wonder a growing wave of borrowers are hitting comparison sites like Mozo right now to check the latest rates and secure a great value deal.
Mozo compares over 500 home loans from more than 80 lenders, and our experts have done the hard work for you by scouring our database to uncover some of the lowest rate home loan on the market right now.
Read on for our expert reviews of some of Spring’s lowest home loans and see how much you could be saving….
5 of the lowest home loans in Australia: October 2021
1.85% fixed rate for 3 years (2.24% comparison rate*)
Free extra repayments up to $20,000 during the fixed term
3 year fixed home loan rates don’t get any lower than this stellar new offer from UBank. Owner-occupier borrowers will be able to grab this rate on loans between $100,000 and $2,000,000 and have the upfront $395 rate lock fee waived, for a limited time. What's more, there are no other upfront or ongoing fees to worry about and UBank even lets customers make extra repayments towards the loan of up to $20k during the fixed term, for free!
HSBC Discounted Home Value Loan
2.19% variable rate (2.20% comparison rate*) for borrowers with 70% LVR
Free extra repayments and online redraw plus no ongoing fees
$3,288 cashback for refinancers - limited time only
HBSC became the first major bank in the Mozo comparison database to introduce a variable home loan rate this low for borrowers with 30% deposit or equity. The loan comes with all of the features you'd expect from a bank, including free extra repayments, a free online redraw facility, an optional split account and a dedicated relationship manager to guide you through the application process. And if you're refinancing $250,000 or more to HSBC, you can enjoy a generous $3,288 cashback.
loans.com.au Smart Booster Home Loan
1.85% discounted variable rate for 2 years
Rolls over to low ongoing 2.25% (2.21% comparison rate*)
Popular online lender loans.com.au is a perennial award winner, and its new Smart Booster Home Loan delivers outstanding value. This low rate, low fee variable home loan is packed with useful features like unlimited extra repayments, free redraws and an optional offset account to boost your savings. With all this value on offer and no pesky ongoing fees to boot, this loan is a must-see. Minimum 20% deposit required.
Bank of Queensland Economy Variable Home Loan
Variable rates from just 1.98% p.a. (2.15% p.a. comparison rate*)
Bonus $3,000 cashback for refinancers - Apply by 31 October
Available to borrowers with 70% LVR
BOQ is a favourite with borrowers looking to find value outside of the big four banks, and for good reason. This jaw-dropping new sub 2.00% variable home loan is available to borrowers who have an LVR of 70% or less and who meet BOQ's debt to income ratio criteria. Loan features include free extra repayments and free redraws for a $10 monthly service fee, plus refinancers can score a bonus $3,000 cashback for a limited only. Minimum loan size $250,000.
Athena Celebrate Variable Home Loan
1.99% variable and comparison rate*
Zero Athena fees plus free extra repayments and redraw
The Athena Variable Home Loan is one of the best value home loans to hit the market for borrowers with at least 40% deposit or equity. This mortgage features a killer variable rate that stays great from start to finish and zero upfront or ongoing fees. On top of that, to reward borrowers for paying down their home loan, Athena will now automatically lower your rate as you pay down your loan. Available to home buyers and refinancers buying an established property in a capital or major regional city.
*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 the amount and term you entered.
**Initial monthly repayment figures are estimates only, based on the advertised rate, and a loan of $500,000 repaid over 25 years. 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.