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

By Niko Iliakis · · 2 min read
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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

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Last updated 27 July 2024 Important disclosures and comparison rate warning*
  • Featured Product
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    Unloan Variable

    Owner Occupier, LVR <80%

    interest rate
    comparison rate
    Initial monthly repayment
    5.99% p.a. variable
    5.90% p.a.

    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.

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  • Discount Great Rate Home Loan

    Owner Occupier, Principal & Interest, LVR<80%, over $150k

    interest rate
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    6.04% p.a. variable
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    An easy to use Home Loan with no establishment fee and no monthly or annual fees. Minimum deposit of 20% is required. Mozo Experts Choice Awards - Investor Home Loan Award 2024^.

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  • Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR<70%

    interest rate
    comparison rate
    Initial monthly repayment
    6.25% p.a.
    fixed 3 years
    6.20% p.a.

    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.

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  • Discounted Home Value Loan

    Owner Occupier, Principal & Interest, LVR 70-80%

    interest rate
    comparison rate
    Initial monthly repayment
    6.14% p.a. variable
    6.14% 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. Settlement fee waived on new borrowings from $50,000 (T&Cs apply).

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  • Featured Product
    Mozo Expert Choice Badge
    Unloan Variable

    Investment, LVR <80%

    interest rate
    comparison rate
    Initial monthly repayment
    6.29% p.a. variable
    6.20% p.a.

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for investors. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

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* 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

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