Orange Credit Union now offers one of the lowest home loan rates on the market

By Maria Gil · · 2 min read
Fact Checked
Advertiser disclosure
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Orange Credit Union's newest variable home loan product is 156 basis points (bp) below the average variable home loan rate for owner occupiers, according to Mozo’s database. 

The Essential Low Rate Variable Loan’s introductory variable rate starts at 1.58% p.a. (2.72% p.a. comparison rate*) owner-occupier and investors with a  loan-to-value ratio of 95%. Then after the first 24 months, the rate will increase to 2.89% p.a. (2.72% p.a. comparison rate*) which is a bit high compared to some other available home loans.

Essential Low Rate Variable Loan features to look at:

  • Minimum borrowing amount of $350,000
  • No redraw facilities
  • No offset account
  • Free extra repayments
  • Upfront fee of $865

This ultra-low home loan might be ideal for first time home buyers or potential investors who want to break into the property market.

How do these new Orange Credit Union rates compare?

For starters, Orange Credit Union’s Essential Low Rate Variable Loan is currently the lowest available variable interest rate home loan on Mozo’s database. The average variable rate home loan in our database is at 3.14%, making Orange Credit Union’s loan to be 156 bp below our average. The next lowest variable rate is 1.99%, making it 115 bp below the average. 

While Orange Credit Union is the lowest rate in Mozo database, it is important to remember that the 1.58% p.a. (2.72% p.a. comparison rate*) is an introductory rate that will revert back to a much higher variable rate after the 24 months are over.

The average home loan life is 25 years, and you’d only be getting the low rate for two of those years. You also need to remember that this is a variable rate, meaning that the introductory rate and the reverted rate could change at any time. If you prefer to have a loan with a repayment certainty, a fixed rate loan like the Orange Credit Union Essential Fixed Rate Home Loan might be a better fit.

If you’re looking to buy property soon, check Mozo’s home loan comparison hub to find which loan is right for you.

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 13 September 2024 Important disclosures and comparison rate warning*

Home loan comparisons on Mozo

Promoted

  • Fixed Express Home Loan

    • Owner Occupier
    • Principal & Interest
    Interest rate
    5.99 % p.a.
    Fixed 2 years
    Comparison rate
    6.14 % p.a.
    Initial monthly repayment
    $4,312
    Go to site

    Lock in a low 2 year fixed rate with the Mozo award winning Home Lender of the Year. Available for live-in borrowers with just a 10% deposit required. Free extra repayments (up to 20% in fixed period), free redraw and partial offset available. $10 monthly service fee. Aussie support centre. Fast approvals. Up to 6 free offset accounts (T&Cs apply).

  • 3 Year Special Fixed Home Loan

    • Owner Occupier
    • Principal & Interest
    Interest rate
    5.69 % p.a.
    Fixed 3 years
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $4,174
    Go to site

    This home loan is available for purchase or refinance, complete with 1, 2 or 3 year fixed rate options. Minimum 10% deposit required.

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Need help with refinancing?

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Learn more

* 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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