New rock bottom rates have borrowers switching

Mozo

09 Feb 2021

Falling house percents article image content

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 2.00%, savvy borrowers could save tens of thousands on their home loan by refinancing. So if you'd like to crush your mortgage in 2021 and beyond, take a look at some of the top deals on the market right now and get switching!


NEW ROCK BOTTOM RATES - FEBRUARY 2021

loans.com.au Smart Booster Home Loan
loans.com.au
  • 1.99% intro variable rate for 1 year

  • Rolls over to low ongoing 2.48% (2.47% comparison rate*)

  • Optional offset account plus free redraws and extra repayments

The details:

This attention grabbing new home loan from popular online lender loans.com.au is designed to help you boost your savings, build your equity and to help you own your own home sooner. With flexibility at its core, it features unlimited free extra repayments and redraw, multiple loan split options and an optional offset account for 0.10%. Plus, there are no ongoing monthly or annual fees. Available to borrowers with a 20% deposit for loans of up to $1 million.

Athena Celebrate Variable Home Loan
Athena
  • 2.19% variable rate (2.39% comparison rate*)

  • No application, valuation or ongoing fees

  • Minimum 40% deposit required

The details:

The new Celebrate Variable Home Loan from Athena features a competitively low rate and a customer first approach, helping Aussies around the country save money and pay off their mortgages sooner. Plus, to reward borrowers for paying down their home loan, Athena will now automatically lower your rate as you pay down your loan. Available to borrowers with a 40% deposit or equity in their property, this  Athena Home Loan is shaking up the mortgage market.

Macquarie Basic Home Loan
Macquarie
  • 2.09% fixed rate for 2 years (2.56% comparison rate*)

  • No application or account management fees

  • Free redraw using Macquarie Online

The details:

Macquarie is making waves as the lender of choice for borrowers with decent equity in their property and this competitive new fixed home loan shows why. Not only can you lock in at close to 2 percent for 2 years, you won't sacrifice flexibility. You can access free redraws via Macquarie Online, create up to six loan accounts with different rate and repayment types, and mange your accounts using the state-of-the-art Macquarie app. It's available to borrowers with a minimum 70% LVR.

86 400 Neat Home Loan
86 400
  • 2.19% variable rate (2.20% p.a. comparison rate*)

  • Free extra repayments and redraw

  • 40% deposit required

The details:

86 400’s newly launched Neat Home Loan ticks all of the right boxes, featuring an ultra competitive variable rate, a low upfront fee of $250 and no ongoing fees for borrowers looking to keep their costs to a minimum and save on interest. Add in a free redraw facility and the ability to make extra repayment, plus a simple online application process as you'd expect from an online lender, and this is one home loan worth checking out. Ideal for refinancers with 40% deposit or equity.

UBank UHomeLoan - Discount Offer
UBank
  • New 2.34% variable rate (2.49% comparison rate*)

  • $0 annual or upfront application fees

  • Free extra repayments and redraw facility

The details:

Featuring an ultra low variable rate, no application fees and no ongoing service fees, the UHomeLoan is a great budget-friendly option for refinancers that has the security of being backed by NAB. Flexible features include free extra repayments and unlimited free redraw, and you can choose monthly, fortnightly or weekly repayments to suit your budget. No wonder it won an award for a Best Low Cost Home Loan Award. Available for loans of $200,000 plus with a minimum deposit or 20% or more.

Suncorp Fixed Home Loan Special Offer
Suncorp
  • 1.89% fixed rate for 2 years (2.94% comparison rate*)

  • Free extra repayments up to $500/month during fixed term

  • Money Magazine Bank of the Year 2020, 2019, and 2018

The details:

Would you like the security of a lender with a familiar name that won’t make you compromise on rates? Well Suncorp’s Fixed Home Loan Special Offer could be just what you’ve been searching for, as it comes with a rock bottom 2-year fixed rate that is one of the lowest in our database. While there is a $375 annual fee to consider, Suncorp will actually waive it for borrowers in the first year, plus the loan also allows extra repayments during the fixed term (free up to $500 per month).

*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.

^See information about the Mozo Experts Choice Home loans Awards

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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