Mortgage shake-up! Meet the lenders taking on the big banks
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 7.48% 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.
For first time buyers struggling to save huge deposits, digital newcomer Sucasa is helping Aussies with a home loan that only requires a 5% deposit and no lender’s mortgage insurance. Other home loan innovators include Up with its 50 free offset accounts, and Unloan, the digital brainchild of CommBank that has a unique loyalty discount of an additional 0.01% p.a. every year.
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.
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^
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.
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
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.
Ubank - Neat Home Loan
- Variable rates from 6.14% (6.16% comparison rate*) - min 40% deposit
- Fast and paperless online application process
- Free extra repayments
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.
HSBC - Home Value Loan
- 6.09% variable rate (6.09% 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^
Interested in a HSBC home loan? Lendi specialists can help you refinance your home loan.
You can this discuss this option and compare against 25+ lenders with our trusted partner Lendi.
Answer a few questions online about your current loan and Lendi will connect you with one of their experienced home loan specialists, who can guide you every step of the way.
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.
Calculate your home loan repayments
We can show you the monthly repayment amount for a range of loans
* According to the Mozo Database as at 4/3/2024 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
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.