May home loans snapshot: HSBC and ING emerge as new fixed rate leaders
In good news for Australian borrowers and refinancers, the recent downward trend in home loan interest rates has continued, according to new Mozo research released this morning.
Figures from the latest Mozo Banking Roundup reveal that mortgage lenders continued to drop both home loan rates throughout May, but as in previous months, changes to fixed rates largely outweighed those to variable rates.
Among the most significant recent fixed rate movements, AMP slashed 35 - 185 basis points off select fixed package loan rates while neobank 86 400 cut its own fixed rate offers by between 15 - 25 basis points.
On the flip side, ANZ increased fixed rates on its Breakfree Package loan by up to 10 basis points, while online lenders Reduce Home Loans and Well Home Loans also increased what were previously rate-leading offers.
The increases from Reduce and Well now leave HSBC and ING sitting pretty as the rate leaders in the Mozo database in four of five fixed rate terms. Here are the five database-leading fixed rates and the Mozo averages as of June 1, 2020:
| Term | Rate leader | Fixed rate | Average |
|---|---|---|---|
| 1 year | Newcastle Permanent | 2.18% (3.83% comparison rate*) | 3.03% |
| 2 year | HSBC and ING | 2.09% (3.09% and 3.77% comparison rates*) | 2.98% |
| 3 year | ING | 2.14% (3.62% comparison rate*) | 3.01% |
| 4 year | HSBC | 2.40% (3.13% comparison rate*) | 3.36% |
| 5 year | ING | 2.54% (3.50% comparison rate*) | 3.38% |
Variable rates trend down
While there was a lower volume of variable home loan rate changes in May compared to fixed changes, cuts continued to flow.
There was a bit of jostling at the most competitive end of the market, with three lenders - Homestar, Reduce Home Loans and Tic:Toc - now offering a variable rate of 2.39% for owner occupiers. That’s currently the lowest in the Mozo database.
Online lender Homestar has cut its Star Essentials loan by 5 basis points to 2.39% (2.39% comparison rate*) and Tic:Toc shaved 15 basis points off its Variable Home Loan meaning that it also sits at 2.39% (2.40% comparison rate*).
The Reduce Home Loan Rate Slasher rate of 2.39% (2.40% comparison rate*) remains unchanged.
As a result of the various rate changes, the average variable rate in the Mozo database (based on a $400k, OO, P&I loan with an 80% LVR) dropped fractionally over the month from 3.44% to 3.43%.
RELATED: Macquarie Bank slashes fixed rates by up to 0.35%
Don’t think your current home loan rate is up to scratch anymore? Find out just how much you could save by using our handy switch and save calculator, or see how it stacks up against some of the hot offers in the table below.
Compare fixed home loans - last updated 13 August 2022
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Featured Product
Own Home Loan
Fixed, Owner Occupier, Principal & Interest, LVR <60%
interest rate
comparison rate
Initial monthly repayment5.19% p.a.
fixed 1 year4.27% p.a.Competitive Fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.
CompareCompareOwn Home Loan
Competitive Fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.
- interest rate
- 5.59% p.a.
fixed 3 years
- comparison rate
- 4.60% p.a.
- interest rate
- 5.59% p.a.
fixed 3 years
- comparison rate
- 4.60% p.a.
- upfront fees
- $250
- Ongoing fees
- $250.00 yearly
- Discharge Fee
- $300.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- yes
- Maximum loan to value ratio
- 60.00%
- minimum borrowing amount
- -
- maximum borrowing amount
- -
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
Read our Mozo Review to learn more about the Own Home Loan
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Basic Home Loan
Fixed, Owner Occupier, Principal & Interest, LVR<70%
interest rate
comparison rate
Initial monthly repayment4.49% p.a.
fixed 1 year3.81% p.a.No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.
CompareCompareBasic Home Loan
No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.
- interest rate
- 5.29% p.a.
fixed 3 years
- comparison rate
- 4.14% p.a.
- interest rate
- 5.29% p.a.
fixed 3 years
- comparison rate
- 4.14% p.a.
- upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $400.00
- Extra repayments
- yes - up to $10,000 p.a.
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 70.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- $750,000
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly
- Special Offers
Read our Mozo Review to learn more about the Basic Home Loan
-
Fixed Rate Home Loan
Home Loan Package, Owner Occupier, Principal & Interest, LVR <80%
interest rate
comparison rate
Initial monthly repayment5.57% p.a.
fixed 1 year4.03% p.a.Ability to split your home loan between Fixed and Variable. Dedicated Relationship Manager. Min 20% deposit. Receive $3,288 cashback when you refinance an existing home loan of $250,000. Must apply by 31 August 2022 and settle by 31 October 2022.
CompareCompareFixed Rate Home Loan
Ability to split your home loan between Fixed and Variable. Dedicated Relationship Manager. Min 20% deposit. Receive $3,288 cashback when you refinance an existing home loan of $250,000. Must apply by 31 August 2022 and settle by 31 October 2022.
- interest rate
- 5.87% p.a.
fixed 3 years
- comparison rate
- 4.48% p.a.
- interest rate
- 5.87% p.a.
fixed 3 years
- comparison rate
- 4.48% p.a.
- upfront fees
- $0
- Ongoing fees
- $390.00 yearly
- Discharge Fee
- $300.00
- Extra repayments
- yes - free up to $10,000 p.a.
- Redraw facility
- no
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- $7,500,000
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- Receive $3,288 cashback when you refinance an existing home loan of $250,000. Must apply by 31 August 2022 and settle by 31 October 2022.
Read our Mozo Review to learn more about the Fixed Rate Home Loan
-
Basic Home Loan
Fixed, Owner Occupier, Principal & Interest, LVR 70-80%
interest rate
comparison rate
Initial monthly repayment4.55% p.a.
fixed 1 year3.91% p.a.Get a flexible loan structure with up to six loan accounts with different rate types. Make free extra repayments. Enjoy free redraw facility. No upfront or ongoing fees. Option to earn Qantas points.
CompareCompareBasic Home Loan
Get a flexible loan structure with up to six loan accounts with different rate types. Make free extra repayments. Enjoy free redraw facility. No upfront or ongoing fees. Option to earn Qantas points.
- interest rate
- 5.35% p.a.
fixed 3 years
- comparison rate
- 4.23% p.a.
- interest rate
- 5.35% p.a.
fixed 3 years
- comparison rate
- 4.23% p.a.
- upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $400.00
- Extra repayments
- yes - up to $10,000 p.a.
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- $750,000
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly
- Special Offers
Read our Mozo Review to learn more about the Basic Home Loan
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Mozo experts choice awards won:
- Split Home Loan - 2022
- Australia's Best Large Mutual Bank - 2022
Fixed Rate Home Loan
Owner Occupier, Principal & Interest, LVR<80%
interest rate
comparison rate
Initial monthly repayment4.99% p.a.
fixed 1 year3.63% p.a.Competitive fixed rates across 1 to 5 year terms. No application fee or annual fee. Free extra repayments (up to $10,000 per year). Winner of Australia's Best Large Mutual Bank 2022.
CompareCompareFixed Rate Home Loan
Competitive fixed rates across 1 to 5 year terms. No application fee or annual fee. Free extra repayments (up to $10,000 per year). Winner of Australia's Best Large Mutual Bank 2022.
- interest rate
- 5.59% p.a.
fixed 3 years
- comparison rate
- 4.04% p.a.
- interest rate
- 5.59% p.a.
fixed 3 years
- comparison rate
- 4.04% p.a.
- upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $275.00
- Extra repayments
- yes - free up to $10,000 p.a.
- Redraw facility
- no
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- -
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly, Fortnightly, Weekly
- Special Offers
Read our Mozo Review to learn more about the Fixed Rate Home Loan
Interested in a Qudos Bank home loan? Great choice!
Qudos Bank home loan includes:
-
Competitive rates
-
No application fee or annual fee
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Borrow up to 80% of the property value
Next step: fill out your details below, so Qudos Bank can get in touch for an obligation-free chat about your needs.
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* 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, loan amount and term entered. 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
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