Mozo reveals how Aussies can save up to $106,000 in just five days

Whether it’s earning a free coffee, using a coupon code to save at the checkout or scoring a two for one deal on cookies, most Aussies know a good bargain when they see one. 

But according to new Mozo research, there’s one mega bargain opportunity majority Aussies are forgetting: their home loan.

The data revealed that despite half of Aussie homeowners proudly calling themselves bargain hunters, a whopping 75% admitted they had not refinanced their home loan, potentially missing out on up to $106,000 in savings

“There are hundreds of ways to keep costs down from chasing rewards to joining loyalty programs or buying in bulk. This may save you a few dollars here and there but the reality is, by not going with the most competitive lenders in the market, you could be losing tens of thousands of dollars over the course of your loan,” said Mozo Director, Kirsty Lamont.

“The average amount of time it takes to refinance is five days, meaning that you could be saving major amounts of money in less than a week.”

How to beat the home loan loyalty tax 

Earlier this month the Reserve Bank lowered the official cash rate to 0.50%, which resulted in many lenders pass on the full rate cut to customers. 

However, Mozo data has shown that the average big four home loan rate still remains 1% higher than the lowest rate in the market, leaving many Aussie homeowners stuck with a dud deal. 

70% of homeowners even admitted they felt they were being hit with a loyalty tax by staying with their current lender, while 95% said they should be comparing and making the switch or pushing their lender for a better deal. 

Lamont explained that while having a variety of lenders at your fingertips is an easy way to guarantee yourself the best deal, for many Aussies, it may also be the reason holding them back. 

“For any bargain hunter, the prospect of saving up to $100k should be enough motivation to pick up the phone and start talking to their bank,” says Lamont. 

“Admittedly it can feel overwhelming with hundreds of lenders fighting for your attention. This is why Mozo has done the hard yards through the Mozo Experts Choice Awards, identifying the top low cost lenders in the market.”

Launched today, the 2020 Mozo Experts Choice Home Loan Awards are designed to give Aussie borrowers an insight into the lenders our expert judges believe are worthy of consideration. 

Analysing more than 400 home loans from over 80 providers, our judges uncovered award-winning products for every type of borrower, from investors to first home buyers. 

So if you’d like to find out who made it onto this year’s winners list, head on over to our 2020 Mozo Experts Choice Home Loan Awards winners page. 

And if you’d like to check out how our winners were chosen, have a read of our methodology report

Compare home loans - last updated 12 August 2022

Search promoted home loans below or do a full Mozo database search . Advertiser disclosure
  • Variable Home Loan 70

    interest rate
    comparison rate
    Initial monthly repayment
    3.10% p.a. variable
    3.12% p.a.

    Affordable home loan rate for buyers or refinancers.. No monthly or ongoing fees. Option to add an offset for 0.10%. Access to savings with unlimited redraws available. Minimum 30% deposit required.

    Details
  • Unloan Variable

    Owner Occupier, Refinance Only

    interest rate
    comparison rate
    Initial monthly repayment
    3.14% p.a. variable
    3.06% p.a.

    For refinancers only. Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply in as little as 10 minutes.

    Details
  • PAYG Home Loan

    Owner Occupier, Principal & Interest, LVR<80%

    interest rate
    comparison rate
    Initial monthly repayment
    3.29% p.a. variable
    3.33% p.a.

    Low variable rate. Ideal for new home buyers or refinancers. Unlimited additional repayments. Unlimited free redraw. Application completely online. Optional 100% offset can be added for $120 p.a.. 20% deposit required.

    Details
  • Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    3.79% p.a. variable
    3.79% p.a.

    Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required.

    Details

* 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

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.