Online lenders drive down rates, steal bank borrowers

Competition in the home loans market is heating up again as a growing wave of online lenders cut rates below 3.00%, forcing the big banks to fight back or risk losing borrowers to cheaper lenders.

With fixed rates starting from just 2.79% for 3 years (3.04* comparison rate), and a growing number of online lenders cutting variable rates to new sub 3.00% lows, borrowers can now access incredibly cheap deals by comparing home loan options online and making the switch.

And it's no wonder borrowers are responding, given the huge potential savings on offer and the ease of applying online without having to visit a bank branch or broker.

Mozo Director, Kirsty Lamont, said "Borrowers who do their homework and research the top rates can access incredibly low rates that could shave years off their mortgage and potentially save tends of thousands of dollars in interest over the life of the loan, depending on how competitive your rate is currently."

So if you'd like to save on your home loan, take a look at some of the top offers on the market right now, see how they compare to your current rate and make the move today!

NEW 3.48% ONLINE HOME LOAN - Smart Home Loan 80
  • 3.48% variable rate (3.50% comparison rate*)
  • No application or ongoing fees
  • Unlimited additional repayments and free redraws
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Our verdict

Popular online lender has been offering up bank beating home loans since 2011, and they've done it again with the new Smart Home Loan. The ultra low 3.48% variable rate could save you thousands, and there are no application or ongoing fees to pay. With unlimited extra repayments, free redraw and multiple loan splits available, this loan really is the smart choice. It's available for loans of $1 million or less, with at least 20% deposit.

Where do I get it? Head over to to find out more >>


Homestar - Star Essentials Home Loan Refinance Special
  • 3.49% interest rate (3.49% comparison rate)
  • Free extra repayments and redraw facility
  • No ongoing or upfront fees if you apply by 28 June
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Our verdict

With a number of handy features - including free extra repayments and a free redraw facility - and a low 3.49% p.a. variable rate (3.49% p.a. comparison rate), the Homestar Star Essentials Home Loan gives owner occupiers plenty to get excited about. And if you’re a refinancer borrowing between $200,000 and $750,000, you can expect to have the $250 valuation fee and $265 legal fee waived if you apply and are approved by 28 June.

Where do I get it? Head over to Homestar to find out more >>


Tic:Toc - Variable Home Loan
  • 3.47% variable rate (3.48% comparison rate*)
  • No application, valuation or settlement fees
  • $1,000 cashback when you settle
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Our verdict

Winner of the Mozo Experts Choice Online Lender of 2019 award, Tic:Toc is transforming the home loans process with a super streamlined 100% online approval process and simple, great value home loans. The Tic:Toc Variable Home Loan offers all of the features you want (think ultra low rate, free extra repayments and redraw plus an optional offset account) and none you don't like annoying fees. Plus for a limited time you'll get $1,000 cashback when you settle.

Where do I get it? Head over to Tic:Toc to find out more >>


Athena - Liberate Variable Home Loan
  • 3.59% rate p.a. (3.55% p.a. comparison rate)
  • No application or ongoing fees
  • Fee-free extra repayments and redraw
Find out more
Our verdict

New lender Athena is shaking up the mortgage market with this 3.59% variable rate offer for refinancers. But don’t think the value ends there, the loan also offers $0 application or ongoing fees plus free extra repayments and a free redraw facility. Just keep in mind, if you’re a first home buyer, you won’t be able to get this loan as it’s only for refinancers, living in capital or major regional cities.

Where do I get it? Head over to Athena to find out more >>

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

* 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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