New lender OneTwo rewards customers with ongoing discounts on home loans

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OneTwo is one of the newest lenders in the country and is on a mission to reward borrowers for their loyalty. The lender has launched its own automatic rate-reducing home loan, where you receive discounts the more you pay off your mortgage.

It’s an approach that helps OneTwo stand out from the crowd.

“We are hell-bent on doing something different in the market,” said OneTwo’s chief marketing officer, Liz McCarthy.

While a loyalty discount is one aspect of OneTwo’s offering, it also has a focus on customers. The company says it wants to make the process of applying for a home loan as easy as ‘one-two’ by starting a conversation rather than an application. To help with this, customers use interactive video where they can get help from the OneTwo customer service team face to face.

While OneTwo is not the first Australian lender to try to make home loans easier, it is one of the few lenders rewarding their customers for paying off their loans.

Related: homeloans.com.au rewarding customers with home loan rate drops

Let’s have a look at its Rate Reducing loan in more detail.

The OneTwo Rate Reducing Variable Rate Home Loan

The OneTwo Rate Reducing Variable Rate Home Loan
  • 1.99% p.a. (1.89% p.a. comparison rate*)
  • Receive discounts as you pay down your loan
  • Extra repayments matched up to $2,500 after the first six months

OneTwo offers a low starting variable rate of 1.99% p.a. (1.89% p.a. comparison rate*) for owner occupiers looking to refinance their home loan. Just as the name suggests, you’ll receive discounts as you pay off your loan over time: OneTwo says your interest rate will be reduced by a 0.03% discount each time you pay off 5% of your original loan amount (up to a max of 0.15%). The lender will also match any extra repayments made after the first six months, up to a total of $2,500. OneTwo has no application, account keeping or exit fees, but keep in mind you could be charged a late fee if you miss a repayment. There are also no offset accounts or redraw capabilities with this loan.

How does OneTwo compare to other home loans?

For starters, the OneTwo Rate Reducing Variable Rate Home Loan has variable rates starting from 1.99% p.a. (1.89% p.a. comparison rate*), putting it 113 basis points below the 3.12% variable rate average in Mozo’s database. It is also among the lowest variable home loans available in our database. 

If you pay off 25% of your original loan amount then you could end up with a 0.15% discount on your interest rate. Putting it 128 basis points below the variable rate average in Mozo’s database.

Currently, OneTwo home loans are only open to owner occupier refinancers, but it says that it has plans to offer more home loan products very soon.

To find out more about OneTwo’s refinancing offer, including all the features and rates involved, read our Rate Reducing Variable Rate Home Loan review.

Otherwise see how OneTwo stacks up against some other great offers for refinancing in the table below, or check out Mozo’s refinance home loan comparison hub.

Home loan comparisons on Mozo - last updated 23 January 2022

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure
  • Mozo Expert Choice Badge
    Smart Booster Home Loan
    interest rate
    comparison rate
    Initial monthly repayment
    1.85% p.a.variable for 24 months and then 2.25% p.a. variable
    2.21% p.a.

    New super low introductory rate home loan for two years. Min 20% deposit. No monthly or ongoing fees. Fast settlement times. Mozo award-winning online lender. Friendly, local Australian based team.

    Details
  • Mozo Expert Choice Badge
    UHomeLoan - Discount Offer
    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a. variable
    1.99% p.a.

    Enjoy a super low rate. $0 fees to consider. Fast and easy online application. Free redraw and free extra repayments. Flexible payment terms. Min 20% deposit required.

    Details
  • Variable Home Loan
    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a. variable
    1.99% p.a.

    Same low variable rate for all. No upfront or ongoing fees. Approval in minutes not weeks with a fast digital application. 100% offset sub account with no account or redraw fees. Comes with a Visa debit card, mobile App, and digital wallet (Apple and Google Pay). Refinance only. 25% deposit or equity required.

    Details
  • Mozo Expert Choice Badge
    Celebrate Variable Home Loan
    interest rate
    comparison rate
    Initial monthly repayment
    1.89% p.a. variable
    1.89% 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. Winner of three Mozo Expert's Choice Awards for 2021.

    Details
  • Basic Home Loan
    interest rate
    comparison rate
    Initial monthly repayment
    2.14% p.a. variable
    2.14% p.a.

    Competitive low variable rate. No application or account management fees. Flexibility to split your loan and set different repayment types. Fee free withdrawals of your savings.

    Details
  • Discounted Home Value Loan
    interest rate
    comparison rate
    Initial monthly repayment
    1.97% p.a. variable
    1.98% p.a.

    Enjoy competitive rates for owner occupiers. Enjoy unlimited free extra repayments. Flexibility to redraw additional payments for free. No ongoing monthly service fee. Plus, $3,288 cashback offer (conditions apply).

    Details
  • Special Real Deal Home Loan
    interest rate
    comparison rate
    Initial monthly repayment
    2.22% p.a. variable
    2.26% p.a.

    No application or service fees. Flexibility to choose your repayment schedule ( weekly, fortnightly or monthly) . $2,000 cashback offer for investor & owner occupied home loans over $250k with LVR ≤80% when refinancing to Newcastle Permanent.

    Details
  • Mozo Expert Choice Badge
    Variable Home Loan Special
    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a. variable
    2.02% p.a.

    Yard’s low-rate variable special home loan is packed with all features – unlimited additional repayments, free redraw, 100% offset account. Enjoy a simple online application. Special rate applies to home loan applications submitted by 31st January 2022. Low Cost Home Loan winner in the Mozo's Experts Choice award 2021.

    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

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