New rock bottom rates have borrowers switching


04 Jun 2020


Aussies looking to save money on their home loan are racing to take advantage of the latest frenzy of home loan rate cuts, as challenger lenders slash rates to crazy new lows.

The super sharp rates on offer from online and challenger lenders have created a perfect storm for the big banks, as borrowers ditch and switch in search of bigger savings from more competitive lenders who are now offering variable interest rates that are more than 1.00% below the average big 4 bank rate.

With variable and fixed home loan rates now starting from under 2.70%, savvy borrowers could save tens of thousands on their home loan by refinancing. So if you'd like to crush your mortgage in 2020 and beyond, take a look at some of the top deals on the market right now and get switching!



HSBC Fixed Rate Home Loan
  • New 2.09% fixed rate for 2 years (2.98% comparison rate*)

  • Free extra repayments up to $10,000 a year

  • No upfront or ongoing fees

The details:

HSBC has just dropped this market leading 2 year fixed home loan and is sure to win over plenty of borrowers eager to save on monthly repayments and protect against future rate rises. You can make extra repayments up to $10,000 each year with no penalty during the fixed rate period and choose to split your loan between fixed and variable. It's available to borrowers with at least 20% deposit and you'll get a relationship manager to help you with the application process. 

Promoted Smart Home Loan 80
  • New 2.63% variable rate (2.65% comparison rate*)

  • No application or ongoing fees

  • Unlimited additional repayments and free redraws

The details:

This super low variable rate from popular online lender is a bona fide mortgage crusher, and they've done away with pesky fees as well. This no-fuss mortgage has all the features you want and none you don’t - you can make unlimited extra repayments and access a free redraw facility, without paying a premium for bells and whistles like an offset account. If you’re borrowing $1 million or less and have at least a 20% deposit saved up, the Smart Home Loan really is a smart choice.


Homestar Star Essentials Home Loan
  • New 2.39% variable and comparison rate*

  • No ongoing fees plus free extra repayments and redraw

  • Best Low Cost Home Loan - Mozo Experts Choice Awards 2020

The details:

Boasting one of the lowest variable rates on the market plus no ongoing fees, this super sharp loan also comes neatly packaged with a number of great features including unrestricted extra repayments and free online redraws. If saving thousands on your mortgage is your thing, then Experts Choice award winner Homestar might just be your lender of choice. This popular Australian non-bank lender has been offering low-cost home loans since 2004, and the Star Essentials home loan is no exception.


Mortgage House Switch and Save Special - Fixed Rate Home Loan
  • New 2.19% fixed rate for 3 years (2.65% comparison rate*)

  • No ongoing monthly or package fees

  • Flexibility features including additional repayments and redraw

The details:

This cracking deal from Mortgage House Lock lets you lock in a super-low rate for 3 years so you can budget accordingly and avoid the stress of a sudden rate rise. You can also avoid unnecessary costs with no monthly fees or ongoing package fees. What's more, this innovative lender is pairing this fixed-rate loan with flexible home loan features including additional repayments and redraw facility.


UBank UHomeLoan - Discount Offer
  • 2.59% variable & comparison rate*

  • $0 annual or upfront application fee

  • Free extra repayments and redraw facility

The details:

Our experts awarded UBank Best Bank Home Lender of 2020 for its winning combination of ultra low rates, minimal fees and super streamlined online application processes. Borrowers with a 20% deposit can apply for this cracking variable loan and enjoy no upfront or ongoing fees. You can choose to make monthly, fortnightly or weekly repayments to suit your budget plus take advantage of free extra repayments and redraw. No wonder it was a slam dunk for a Best Low Cost Home Loan Award. Available for loans of $200,000 or more. 

*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 the amount and term you entered.

**Initial monthly repayment figures are estimates only, based on the advertised rate, and a loan of $500,000 repaid over 25 years. 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.

Want to compare more home loans? View the latest mortgage rates from over 80 lenders at Mozo's home loan comparison hub.

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