October home loan snapshot: Greater Bank drops rates to new lows, refinancing swells

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The issue of housing affordability and concerns over household debt are once again dominating headlines in the property sphere, but if you’re interested in the latest from the world of home loans then you've come to the right place.

There has been a host of cuts to home loan rates in recent weeks, including a new fixed rate which is the lowest ever recorded in our database. Meanwhile, borrowers are continuing to take advantage of historically low rates, with refinancing volumes reaching new highs.

So for a snapshot of the recent home loan rate changes and a look at the lowest and average rates in the Mozo database, read on.

Recent variable and fixed rate movements

The steady stream of cuts to variable rates has continued in recent weeks, adding to a trend which has seen the average variable rate in the Mozo database (owner-occupied, <80% LVR) drop to just 3.14%. That’s the lowest it’s been since tracking began in 2015. Some of these recent variable rate changes include:

  • Greater Bank cut 20bp off of its Discount Great Rate Loan, meaning the lowest rate is now 2.19% p.a. (2.21% p.a. comparison rate*) for owner occupiers with an LVR <90%
  • Macquarie took 15bp off of its Basic Home Loan, putting the lowest rate available at 2.24% p.a. (2.24% p.a. comparison rate*) for owner occupiers with an LVR <80%
  • Pacific Mortgage Group cut 10bp off of its Standard Variable Home Loan, meaning the lowest rate available to owner occupiers with an LVR <80% is 1.94% p.a. (1.94% p.a. comparison rate*) which is one of the lowest in our database

Moving onto fixed rates, it’s hard to look past another reduction from Greater Bank. Last month the bank reduced headline rates on a number of its fixed home loans to just 1.59%. For example, the 2-year fixed rate available on the Discount Great Rate Home Loan (<90% LVR) is now sitting at 1.59% p.a. (2.15% p.a. comparison rate*) — the lowest rate we’ve ever recorded in the Mozo database. Elsewhere:

  • UBank reduced the 3-year fixed rate for owner occupiers (<80% LVR) on its UHomeLoan (Fixed) by 10bp to 1.85% p.a. (2.24% p.a. comparison rate*) which is currently the lowest in our database for that term length

Lowest home loan rates

So how do all those recent movements compare more broadly? Here’s a look at the lowest home loan rates currently being tracked in the Mozo database available to owner occupiers (P&I repayments, <80% LVR), though it’s also worth noting that many lenders offer even sharper rates to borrowers with lower loan-to-value ratios.

Lowest variable rates — Mozo database (October 1, 2021)^^

LenderLoanVariable rate
Reduce Home LoansSuper Saver1.88% p.a. (1.97% p.a. comparison rate*)
Tic:TocVariable Home Loan1.89% p.a. (1.90% p.a. comparison rate*)
Police Credit UnionBetter Home Loan1.89% p.a. (1.93% p.a. comparison rate*)
Pacific Mortgage GroupStandard Variable 1.94% p.a. (1.94% p.a. comparison rate*)
Well Home LoansWell Balanced1.99% p.a. (2.02% p.a. comparison rate*)

Lowest and average fixed rates — Mozo database (October 1, 2021)^^

TermRate leaderFixed rateMozo average
1-yearGreater Bank1.59% p.a. (2.15% p.a. comparison rate*)2.28%
2-yearGreater Bank1.59% p.a. (2.10% p.a. comparison rate*)2.23%
3-yearUBank1.85% p.a. (2.24% p.a. comparison rate*)2.34%
4-yearTeachers Mutual Bank2.14% p.a. (2.90% p.a. comparison rate*)2.59%
5-yearFreedomlend2.47% p.a. (2.14% p.a. comparison rate*)2.81%

Borrowers rush to refinance

Given just how low mortgage rates are at this point in time, it’s hardly surprising that many existing borrowers are taking the opportunity to refinance their home loans.

The latest figures released by the Australian Bureau of Statistics show that over $17 billion worth of loans were refinanced in just one month back in July, which was an ‘all-time high’.

“The value of refinancing between lenders was 60 per cent higher in July 2021 compared to a year ago. This reflected borrowers seeking out lower interest rates, particularly for fixed rate loans, and cashback deals across a large number of major and non-major lenders,” said ABS head of finance and wealth, Katherine Keenan.

As Keenan stated, low interest rates aren’t the only feature attracting mortgage holders to switch though. The number of lenders offering cashback deals to refinancers is continuing to rise, as the latest count from the Mozo database reveals that there are now 27 lenders with cashback incentives of $1,500 or more.

RELATED: More home loan lenders offering cashback deals, but are they worth it?

Time to make the most of the low interest rates on offer at the moment? Whether you’re taking out your first mortgage or you’re looking to refinance an existing loan, make our handy home loan comparison tables your first port of call.

Home loan comparisons on Mozo

Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can compare more home loans here.
Last updated 19 July 2024 Important disclosures and comparison rate warning*
  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    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 online in minutes.

  • Optimum Fixed Rate Home Loan

    • Owner Occupier
    • Principal & Interest
    Interest rate
    5.69 % p.a.
    Fixed 3 years
    Comparison rate
    6.34 % p.a.
    Initial monthly repayment
    $2,899
    Go to site

    Lock in a competitive interest rate and enjoy peace of mind for the fixed period. Available for owner occupied new and refinanced home loans with at least 20% deposit. Split option available as well as offset and redraw. Noapplication, ongoing or banking fees. Third Party fees may be applicable - payable within loan repayments. Extra repayments up to $20K per annum permitted. Apply online, 100% member owned credit union.

  • Special Real Deal Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <80%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.13 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    Refinancers or first home buyers pay no monthly or annual fees. Flexibility to choose your repayment schedule (weekly, fortnightly or monthly). Redraw facility available. Split your home loan into multiple loan accounts.

  • Optimum Fixed Rate Home Loan

    • Owner Occupier
    • Principal & Interest
    Interest rate
    5.69 % p.a.
    Fixed 3 years
    Comparison rate
    6.34 % p.a.
    Initial monthly repayment
    $2,899
    Go to site

    Lock in a competitive interest rate and enjoy peace of mind for the fixed period. Available for owner occupied new and refinanced home loans with at least 20% deposit. Split option available as well as offset and redraw. Noapplication, ongoing or banking fees. Third Party fees may be applicable - payable within loan repayments. Extra repayments up to $20K per annum permitted. Apply online, 100% member owned credit union.

  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    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 online in minutes.

  • Express Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <90%
    Interest rate
    6.01 % p.a.
    Variable
    Comparison rate
    6.14 % p.a.
    Initial monthly repayment
    $3,001
    Go to site

    Get online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.

  • Special Real Deal Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <80%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.13 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    Refinancers or first home buyers pay no monthly or annual fees. Flexibility to choose your repayment schedule (weekly, fortnightly or monthly). Redraw facility available. Split your home loan into multiple loan accounts.

  • Fixed Rate Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <80%
    Interest rate
    6.09 % p.a.
    Fixed 3 years
    Comparison rate
    6.15 % p.a.
    Initial monthly repayment
    $3,027

    Additional repayments of up to $10K per fixed year. Interest rate discounts available. Waiver of $499 application fee when combined with an Orange Advantage Home Loan.

  • Basic Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.

  • Mortgage Simplifier

    • LVR<80%
    • Owner Occupier
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.17 % p.a.
    Initial monthly repayment
    $3,043

    Get a competitive variable rate with ING’s Mortgage Simplifier. Free extra repayments, no monthly or annual fees. Freedom to make free extra repayments or redraws.

  • Offset Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.39 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.

  • Basic Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR<70%
    Interest rate
    6.25 % p.a.
    Fixed 3 years
    Comparison rate
    6.20 % p.a.
    Initial monthly repayment
    $3,079
    Go to site

    No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $10,000,000.

  • Offset Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR <70%
    Interest rate
    6.25 % p.a.
    Fixed 3 years
    Comparison rate
    6.42 % p.a.
    Initial monthly repayment
    $3,079
    Go to site

  • Fixed Rate

    • Owner Occupier
    • Principal & Interest
    • <80% LVR
    Interest rate
    6.54 % p.a.
    Fixed 2 years
    Comparison rate
    7.10 % p.a.
    Initial monthly repayment
    $3,174

    Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.

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Need help with refinancing?

You might have questions that need personal answers. We’ve teamed up with the mortgage brokers at Lendi to get you the answers you need, and a home loan deal you deserve.

Learn more

^^Interest rates are based on an owner occupier making principal and interest repayments on a $400,000 loan with an 80% LVR. For more information on average mortgage rates, check out our dedicated Australian home loan statistics page.

* 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

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.