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 6.75% 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 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, continues to impress with its low variable rate, no fees and unique loyalty discount. Bendigo Bank’s Express home loan comes with money-savings features like free offset and redraw and just a 10% deposit needed, while member owned IMB has a cash back offer of up to $4000 depending on the loan amount and LVR up to 80%.
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 $10 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.
IMB Bank Budget Home Loan
- 6.04% p.a. variable rate (6.07% p.a. comparison rate*)
- Up to $4,000 cashback (T&Cs apply)
- Unrestricted additional repayments
Enjoy the benefits of a discounted variable home loan from IMB and score up to $4,000 cashback in your pocket once approved (T&Cs apply). You’ll get a Life-of-loan discount off IMB’s standard variable interest rate and the ability to make unrestricted additional repayments to pay your mortgage off sooner. Make free Internet and Mobile Banking redraws (T&Cs apply) and pay no monthly fees on a flexible loan term of up to 30 years. Plus, there’s only a 5% deposit required and the ability to split your home loan. No offset account.
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^
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
Macquarie Basic 5 year Fixed Home Loan
- Competitive 5 year fixed rate of 5.69% p.a (5.97% p.a. comparison) for live in borrowers with a 70% LVR
- No annual or application fee
- Fast turnaround times
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 5 year rate is a low 5.69% p.a. (5.97% 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.
IMB Bank 2 year Fixed Rate Home Loan
- 5.69% p.a. 2 year fixed rate (6.28% p.a. comparison rate*)
- Up to $4,000 cashback (T&Cs apply)
- Free Internet and Mobile Banking redraws
Get the peace of mind of a competitive fixed rate home loan for 2 years with IMB and score up to $4,000 cashback in your pocket once approved (T&Cs apply). You have the freedom to make up to 12 months repayments in advance without penalties, plus you’ll have free Internet and Mobile Banking redraws (T&Cs apply). There’s only a 5% deposit required and you have the flexibility to split your home loan as required. No offset account.
Bendigo Bank Express Fixed Home Loan
- 5.54% p.a. 2 year fixed rate (6.11% p.a. comparison rate*)
- Offset account and redraw facility
- 2024 Mozo Experts Choice Exceptional Home Lender^
The online-only Express Home Loan allows live-in borrowers to lock in a 2 year fixed rate of 5.54% p.a. (6.11% p.a. comparison rate*). Other fixed rate terms are available up to 5 years. You'll also net features to help you save on interest including an offset account, redraw facility and the ability to make free extra repayments (of up to 20% in fixed period). You can borrow up to $10 million and have the flexibility to split. Only a 10% deposit is required. Keep in mind that there is a $10 monthly service fee and a $134 electronic valuation fee.
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* According to the Mozo Database as at 31/10/2024 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
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