OneTwo Home Loans cuts variable rates, launches $5,000 cashback deal

Family outside their home.

Digital lender OneTwo recently slashed rates on its variable home loan offer, putting it among the most competitive home loans in the Mozo database.

The OneTwo Variable Rate Home Loan, which is available exclusively to refinancers in metropolitan NSW and Victoria, now comes with a low 1.89% p.a. variable rate (1.79% p.a. comparison rate*).

The new $5,000 cashback offer is available for owner occupiers refinancing a loan worth at least $500,000. Importantly, you must apply before 31 March 2022 and settle by 30 June 2022 to be eligible (T&Cs apply).

On top of the cashback offer, OneTwo will also reward borrowers with an 0.03% p.a. interest rate reduction each time 5% of the original loan amount is paid off. The discount is capped at 0.15% p.a.

Extra repayments can also be made on the loan without attracting any fees. OneTwo says it will match any extra repayments made in the first six months, up to a total of $2,500. 

Variable rates continue to fall

While many of the best fixed rate deals have been disappearing over the last year, variable rates have only gotten sharper.

Since March 2021, the average variable rate has fallen from 3.28% p.a. to 3.04% p.a. — a difference of 24 basis points.

OneTwo is currently one of 16 lenders in our database with variable rates that start with a '1.'

But since variable rates move in line with the cash rate, borrowers should keep in mind that the rates they sign up for now can go up at a moment’s notice in the future.

Despite the Reserve Bank of Australia signalling its willingness to be patient, a number of private sector economists are convinced that it will lift rates several times in the coming quarters.

Most recently, NAB revised its rate hike forecasts to pencil in an August move. It also expects the RBA will increase the cash rate twice more in September and November, which would leave it sitting at 0.75% by year’s end.

For more information on mortgage and lending trends, visit our home loans statistics page. And if you’re in the market for a home loan, visit our home loan comparison page, or browse the selection below.

Home loan comparisons on Mozo - last updated 13 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.

  • 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.

  • 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.

  • 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.


* 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.

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