Mortgage shake-up! Meet the lenders taking on the big banks

By Kylie Moss · Last updated Tuesday, 23 July 2024 · 1 min read

Fact Checked

Aussie borrowers looking for lower home loan rates, faster approval processes and flexible lending terms could find that looking beyond the big banks has its benefits.

The average big 4 home loan rate according to our database^ is 7.31% p.a., and the good news is that many rival lenders have rates well below this. But with so many different options available, it can be hard to know which rival lenders really stand out from the pack.

That’s where Mozo’s money experts come in. We compare home loans for a living and know a good home loan deal from a dud.

Unloan, the digital brainchild of CommBank, in addition to its low rate has a unique loyalty discount of an additional 0.01% pa. every year, Bendigo Bank’s Express home loan comes with money-savings features like free offset and redraw and Newcastle Permanent and just a 10% deposit, while those looking to lock in a low rate and fast turnaround times could consider Macquarie Bank with its 3 year fixed rate deal.

To learn more about these players and some of the other rival banks taking on the big 4, read on for our expert rundown of top home loans currently on offer.

Mozo may receive payment if you click to the website of one of the products below. Mozo does not compare the entire market.

Important disclosures and comparison rate warning*

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Comparison rate warning

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.

How Initial Monthly Repayments figures are estimated

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.

Unloan - Variable Home Loan

5.99% p.a. variable rate (5.90% p.a. comparison rate*)
Zero upfront or ongoing fees
Low cost home loan winner - Mozo Experts Choice Awards 2023 & 2024^

Go to site

Unloan’s Variable Home Loan has taken out a low cost home loan award for the second year running in the Mozo Experts Choice Awards^. Built by CommBank, Unloan offers owner-occupiers a super low 5.99% p.a. variable rate (5.90% p.a. comparison rate*) along with a loyalty discount that shaves 1 basis point off your interest every year for up to 30 years. Loan features include free extra repayments and redraw, and there are no pesky fees to pay. Available for loans of up to $10M. Minimum 20% deposit.

Where do I get it? Head over to Unloan to find out more >>

Macquarie - Basic Variable Home Loan

6.15% and (6.17% comparison rate*)
Zero application or ongoing fees
Free redraw and extra repayments

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With competitive variable interest rates starting at 6.15% p.a. (6.17% p.a. comparison rate*), Macquarie’s Basic Home Loan brings with it minimal fees and a range of features like free extra repayments and a free redraw facility. Together with a split account option so you can split your loan between variable and fixed, the Basic Home Loan from Macquarie is available to owner occupiers and investors alike. 30% deposit required.

Where do I get it? Head over to Macquarie to find out more >>

Bendigo Bank Express Home Loan

6.01% p.a. variable rate (6.14% p.a. comparison rate*)
Offset account and redraw facility
2024 Mozo Experts Choice Low Cost Home Loan winner

Go to site

The Express Home Loan is only available online and has the lowest variable rate of Bendigo Bank home loans at 6.01% p.a. (6.14% p.a. comparison rate*). It also comes with generous features to help you save on interest including an offset account, redraw facility and the ability to make free extra repayments. You’ll be able to borrow up to $3 million and have the flexibility to split. Just a 10% deposit is required and Bendigo says you could get fast online approval in as little as an hour.

Where do I get it? Head over to Bendigo Bank to find out more >>

Ubank - Neat Home Loan

Variable rates from 6.09% (6.11% comparison rate*) - min 40% deposit
Fast and paperless online application process
Free extra repayments

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Ubank has made a name for itself as one of Australia's best value online lenders, and its new Neat Home Loan is a case in point. This low cost variable home loan rewards borrowers with lower loan-to-value-ratios (LVRs) with its best rates, while also being light on fees. Features include free extra repayments and redraw. Plus, Ubank is backed by NAB so you get all of the savings an online lender can offer, as well as the security of big bank backing.

Where do I get it? Head over to Ubank to find out more >>

Newcastle Permanent - Real Deal Home Loan

6.09% variable rate (6.13% comparison rate*)
Free extra repayments
Get up to $3,000 cashback by applying for a new purchase or refinancing online.

Go to site

Featuring a competitive interest rate and no ongoing service fees, the Newcastle Permanent Real Deal Home Loan is just that: the real deal. Not only is it easy on the wallet, but this loan also comes with features like the option to make free extra repayments, split your loan between fixed and variable rates and use a partial offset account. Plus, you could get up to $3,000 cashback by applying for a new purchase or refinancing online if approved.

Where do I get it? Head over to Newcastle Permanent to find out more >>

HSBC - Home Value Loan

6.14% variable rate (6.14% comparison rate*)
Enjoy free extra repayments, online redraw and no ongoing monthly service fees
Settlement fee waived for promotional offer (T&Cs apply)
2024 Mozo Experts Choice Award - Low Cost Home Loan^

Compare 25+ lenders with our trusted partner, Lendi.

Talk to one of their experienced home loan specialists by answering a few questions online.

I want to refinance

HSBC is a favourite with borrowers looking to find value outside of the big four banks, and for good reason. In addition to a low variable rate for borrowers with 70-80% LVR, this loan is loaded with features, 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. $300 variation fee for changes to your loan. It also took out a 2024 Mozo Experts Choice Award^ in the low cost home loan category.

Fixed Rate Deals

Mozo may receive payment if you click to the website of one of the products below. Mozo does not compare the entire market.

Important disclosures and comparison rate warning*

Advertiser disclosure

'Sponsored', 'Hot deal' and 'Featured Product' labels denote products where the provider has paid to advertise more prominently.

We provide only general advice

Comparison rate warning

How Initial Monthly Repayments figures are estimated

Macquarie Basic Fixed Home Loan

Competitive 3 year fixed rate of 6.25% p.a (6.20% p.a. comparison) for live in borrowers with a 70% LVR
No annual or application fee
Fast turnaround times

Go to site

The key essentials of a great value home loan are low rates and low fees, and the Macquarie Fixed Basic home loan has both. For owner-occupiers, you’ll have a range of fixed terms to choose from 1 to 5 years and interest rates are scaled depending on your loan to value ratio. The 3 year rate is a low 6.25% p.a. (6.20% p.a.) for borrowers with at least 30% deposit or equity. The loan also does away with common fees so you won’t pay an application, monthly or an annual loan fee (but there are break cost fees if you do need to exit the loan early). You can make up to $10,000 a year in extra repayments and access them via a redraw. There is also a split loan option but no offset account. The loan is 100% digital and Macquarie boasts market-leading turnaround times and a straightforward application.

Where do I get it? Head over to Macquarie to find out more >>

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* According to the Mozo Database as at 11/7/2024 based on an owner occupied variable rate home loan of $400,000 over 25 years with a LVR <80%.

^* 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

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.