Loyalty to Big 4 costs home loan customers $6 billion in savings each year

By Kirsty Timsans ·

Mozo has calculated that borrowers who remain with a Big 4 home loan despite recent interest rate hikes are missing out on a collective $6.08 billion of cash savings each year or $17 million a day.

Mozo Director Kirsty Lamont said that big bank customers should be compelled to look around because they are missing out on a potential pile of cash savings by sticking with what they know instead of taking the opportunity to shop around for a better deal.

“Knowing you could be up for a share of $6 billion should be enough of an incentive to switch to the lowest going rate on the market,” she said.

According to our home loan database the lowest rate on the market available now is 3.84% from online lender iMortgage, where monthly repayments would be $305 less than the new average Big 4 standard variable rate.

RELATED:

Lamont said Westpac customers would receive the largest windfall, saving as much as $3,816 a year by switching to the lowest rate, followed by CBA and NAB customers.

While ANZ’s new variable rate is the lowest of the Big 4 at 5.56%, homeowners could still save more than $3,500 annually by switching to the lowest home loan rate.

Are you looking for a better deal on your home loan? Use our home loan comparison tool to search for the most competitive rates in the market right now or head on over to our refinance hub for helpful articles, tools and tips for making the home loan switch.

Home loan comparisons on Mozo - last updated January 23, 2021

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure.
  • Smart Booster Home Loan

    1 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a.variable for 12 months and then 2.48% p.a. variable
    2.47% p.a.

    A super low introductory rate home loan with no monthly or ongoing fees. Unlimited free redraws and unlimited additional repayments to help you build your equity and own your home sooner. Multiple loan splits available. (Rates revert after introductory period ends). 20% minimum deposit required.

    Compare
    Details
  • mozo-experts-choice-2020
    UHomeLoan - Discount Offer

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    2.34% p.a. variable
    2.34% p.a.

    Enjoy a super low rate, $0 fees and easy application with the Mozo Experts Choice Home Lender Bank of the Year.^ Free redraw with flexible repayments. Min 20% deposit.

    Compare
    Details
  • mozo-experts-choice-2020
    Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    2.19% p.a. variable
    2.19% p.a.

    Fast online application with no fees. Free extra repayments and redraw facility. Min 40% deposit. Crowned Best New Home Loan for 2020 by the Mozo Experts.^

    Compare
    Details
  • Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR 70-80%

    interest rate
    comparison rate
    Initial monthly repayment
    2.09% p.a.
    fixed 2 years
    2.56% p.a.

    Flexible loan structure – create up to six loan accounts with different rate and repayment types. Free redraw from your loan using Macquarie Online.

    Compare
    Details
  • Fixed Home Loan Special Offer

    Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    1.89% p.a.
    fixed 2 years
    2.94% p.a.

    Competitive low rates starting from 1.89% (2.94% comparison rate) 2 years fixed for owner occupiers. No monthly account keeping fees & No loan establishment fee.

    Compare
    Details
placeholder

Talk to a Mozo home loans expert

Buying your first home, refinancing your existing home or thinking of investing? Speak to Steve, our home loans expert today!

Get Started

^See information about the Mozo Experts Choice Home Loans 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.