Rate hike shock hits 1 in 2 borrowers

Kelly Emmerton   |   04 Jun 2018

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Has your budget been feeling a little tighter than usual lately? It’s no surprise, considering Mozo data reveals that 43 lenders have hiked variable rates for home loan customers since August 2016.

“1 in 2 Aussie borrowers have been stung by out-of-cycle rate rises since the last RBA rate change in 2016, according to a Mozo survey,” said Mozo Director Kirsty Lamont.

Despite this, 8 in 10 borrowers haven’t even thought about switching to a better deal - a decision that could be costing them tens thousands of dollars. By switching from 4.00% variable rate to a 3.70% rate, borrowers could shave $17,245 off a $350,000 mortgage over 25 years.

“There’s no reason for Aussies to be overpaying on their mortgage, since half of the lenders in Mozo’s database now offer a rate under 3.70% to new customers. So if you’re paying too much, today could be the day to switch,” said Lamont.

Get started by comparing some of the lowest home loan rates available in the table below.

Low rate home loans - June 2018 - rates updated daily

  • Essentials Variable 80

    Owner Occupier, Principal & Interest

    3.64% p.a. variable

    3.66% p.a.

    A low-rate home loan that could save you thousands. No monthly or ongoing fees. Unlimited additional repayments. Unlimited free redraws with no minimum redraw amount

    • 3.64% p.a. variable

    • 3.66% p.a.

    • $520

    • $0.00

    • $0.00

    • yes - free

    • yes - free

    • no

    • 80.00%

    • $50,000

    • $2,000,000

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Details Close

  • Discounted Home Value Loan

    Owner Occupier, Principal & Interest

    3.59% p.a. variable

    3.61% p.a.

    Discounted rate for the life of the loan. A relationship manager to help you through the application process.

    • 3.59% p.a. variable

    • 3.61% p.a.

    • $150

    • $0.00

    • $300.00

    • yes - free

    • yes - free online

    • no

    • 90.00%

    • $50,000

    • $7,500,000

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Details Close

  • Well Balanced

    Owner Occupier, Principal & Interest, LVR <80%

    3.49% p.a. variable

    3.53% p.a.

    Well Balanced home loan is a low rate home loan with free online redraw and no valuation fee. Purchase, Refinance or Equity Release purposes allowed.

    • 3.49% p.a. variable

    • 3.53% p.a.

    • $600

    • $0.00

    • $300.00

    • yes - free

    • yes - free

    • yes - $10/month

    • 80.00%

    • $10,000

    • $2,000,000

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Details Close

  • Low Rate Home Loan with Offset

    LVR<80%, Owner Occupier, Principal & Interest

    3.68% p.a. variable

    3.69% p.a.

    A Low Rate Home Loan with a $0 Application Fee, Free Redraws & Extra Repayments

    • 3.68% p.a. variable

    • 3.69% p.a.

    • $0

    • $0.00

    • $300.00

    • yes - free

    • yes - free

    • yes

    • 80.00%

    • $100,000

    • $2,000,000

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Details Close

  • Basic Home Loan Special

    LVR<80%, Owner Occupier

    3.65% p.a. variable

    3.66% p.a.

    A Basic Home Loan which offers a competitive interest rate and other features to make your home or investment loan more affordable. No establishment fee until 31/12/2018. Option to fix full loan or split between fixed and variable. Redraw available.

    • 3.65% p.a. variable

    • 3.66% p.a.

    • $0

    • $0.00

    • $250.00

    • yes - free

    • yes - free

    • no

    • 80.00%

    • $10,000

    • -

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Details Close

*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.

Want more options for refinancing your home loan to a better deal? Check out our refinancing loan comparison hub.

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