Low rates abound for refinancers with lower LVRs


Have you heard the news? In the last few years Australian mortgage lenders have sharpened their home loan interest rates to some of the lowest levels they’ve ever been!

It’s hardly a surprise then that plenty of Australians are making the most of this low rate environment to refinance. In fact, recent figures from the Australian Bureau of Statistics reveal that $24 billion worth of home loans were refinanced in May alone. 

But did you know that some lenders have even lower rates on offer for borrowers with lower loan-to-value ratios (LVRs) - ie. greater levels of home equity? 

So if you’re looking to see if you can refinance to a lower rate, you might be interested in the competitive fixed and variable rate loan deals for lower LVRs that we’ve wrapped up below.


<60% LVR home loans

Athena - Celebrate Variable Home Loan
  • Variable rates from 1.99% p.a. (1.99% p.a. comparison rate*)
  • Free extra repayments and redraws
  • Zero fees
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Online lender Athena has thrown down one of the sharpest rates in the Mozo database for owner occupiers with a <60% LVR: a super low variable rate of just 1.99% p.a. (1.99% p.a. comparison rate*) with its Celebrate Variable Home Loan. Aside from the compelling rate, there are no loan fees, plus the loan comes with handy features like a free redraw facility and extra repayments option. Just bear in mind that it's only available for properties in capital cities and major population centres.

86 400 - Own Home Loan (Fixed)
  • 1-year fixed rate of 1.84% p.a. (2.63% p.a. comparison rate*)
  • $2,000 cashback deal
  • Extra repayments allowed
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Looking to refinance to a fixed rate? Digital bank 86 400 has competitive fixed rates on offer to owner occupiers with an LVR below 60%, the lowest currently being 1.84% p.a. (2.63% p.a. comparison rate*) for a 1-year term. The Own Home Loan (Fixed) also lets borrowers make extra repayments (free up to $20k per fixed rate term) and redraws, though it's worth noting a $250 annual loan service fee applies. There’s even a cashback offer! Eligible refinancers can score $2,000 cashback by refinancing a loan of $250,000+ when they apply by 30 September and settle by 31 November, 2021.

<70% LVR home loans

Macquarie - Basic Home Loan (Fixed)
  • 3-year fixed rate of 2.09% p.a. (2.32% p.a. comparison rate*)
  • No upfront or ongoing fees
  • Earn 10k Qantas Points per 100k borrowed (interest loading applies)

Macquarie has put together a tempting offer for borrowers looking to lock in their rate with its Basic Home Loan (Fixed). Owner occupiers with an LVR below 70% can access rates as low as 2.09% p.a. (2.32% p.a. comparison rate*) for a 3-year fixed term, plus they can take advantage of additional features like extra repayments and a redraw facility. There are also no upfront or ongoing fees with the loan, though there is a $400 discharge fee. Plus, for an extra interest rate loading of 0.05% p.a., borrowers can earn 10k Qantas Points for every $100k they borrow and 25k Qantas Points on the third and fifth loan anniversary (terms and conditions apply).

Yard - Variable Home Loan Special
  • Variable rates from 1.99% p.a. (2.02% p.a. comparison rate*)
  • Optional offset account ($10/month)
  • No ongoing service fee
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Variable rates don’t get much lower than the 1.99% p.a. (2.02% p.a. comparison rate*) rate on offer to owner occupiers with an LVR below 70% through online lender Yard’s Variable Home Loan Special. While there are one-off legal, valuation and settlement fees to consider, there’s no ongoing service fee, plus there are a range of useful features including extra repayments, an online redraw facility and even an optional offset account (for $10 per month). But if you want to grab this special offer you’d better get in quick because applications must be submitted by 31 October, 2021.

<75% LVR home loans

Nano - Variable Home Loan
  • Variable rates from 1.99% p.a. (1.99% p.a. comparison rate*)
  • Offset sub-account
  • Lightning fast online approval process
Find out more

One of the newest players around, digital lender Nano has burst onto the scene with a super low variable rate just for refinancers. Rates on the Variable Home Loan start at just 1.99% p.a. (2.99% p.a. comparison rate*) for owner occupiers with an LVR below 75% and there are no fees to worry about. Borrowers also have a few flexible features available to them, including an offset sub-account and the ability to make extra payments towards the loan. Nano also prides itself on the speed of its online approval process, which it says can be completed (paper-free) in a matter of minutes.

Want to see how these great offers stack up against other refinancing deals? Then you’ll want to head on over to the Mozo refinance home loans hub where you’ll be able to compare an even greater selection of loans on interest rates, fees, features and more.

* 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.

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