The record breaking lenders winning Aussie borrowers


12 Mar 2020


Australia's home loan market is in the midst of a massive shake up, with a tidal wave of new lenders taking on the big banks and breaking records left, right and centre as they fight it out to win borrowers over.

In recent months, smaller lenders have broken new records on the rate front by introducing variable rates with a '2' in front. And it's not just rates where records are being broken. The latest industry data* shows that record numbers of Australians are taking out home loans with non-major lenders, as banks lose out to innovative new players intent on changing the game on everything from the speed of your loan approval to the time it takes you to pay off your mortgage.

So who are these lending dynamos who are breaking new records and winning over savvy borrowers? Read on for our low down of the game changing lenders who are shaking up the mortgage market right now....



Homestar Star Essentials Home Loan
  • 2.44% p.a. variable rate (2.55% p.a. comparison rate*)

  • Free extra repayments and redraw facility

  • No monthly or ongoing account fees

HomeStar is the only lender in the Mozo comparison database to pass on all six of the RBA's most recent rate cuts in full, breaking records as Australia's most generous lender. In addition to an ultra low variable rate, the Star Essentials Home Loan also offers $0 annual or ongoing monthly fees plus a range of flexible features like unrestricted extra repayments, free online redraw and the option to split your loan into variable and fixed rate portions. With all this value on offer, it's no wonder HomeStar is a regular Mozo Experts Choice Award winner.

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


Promoted Smart Home Loan 80
  • 2.63% variable rate (2.65% comparison rate*)

  • $0 application, annual or monthly fees

  • Backed by Australia's largest non-bank lender

Online lender is still relatively unknown to many Australians, but this quiet achiever has been offering low cost home loans since 2011 and its parent company Firstmac is actually Australia's largest non-bank lender, with more than $10 billion in mortgages under management! The Smart Home Loan is a no-bells-and-whistles loan that could save you thousands, with a super-low rate for borrowers with 20% deposit or equity, $0 application or ongoing fees, unlimited additional repayments and free redraws.

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



UBank UHomeLoan - Discount Offer
  • The new mortgage lender that's trying to get RID of customers

  • New 2.59% variable rate (2.55% comparison rate*)

  • Zero Athena fees

UBank was crowned Mozo’s 2020 Home Lender Bank of the Year, beating 85 other providers to the title. With ultra low interest rates, minimal fees and flexible features like the option to split your loan into variable and fixed, the UHomeLoan - Discount Offer packs in plenty of value for owner occupiers. It’s such an all-rounder that it caught our expert judges’ eyes two years in a row, snatching up Mozo Experts Choice Awards for Best Low Cost Home Loan and Best Split Home Loan in 2019 and 2020.

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



HSBC Discounted Home Value Loan
  • 2.65% variable rate (2.66% comparison rate*)

  • Flexible weekly, fortnightly & monthly repayment options

  • Borrow with just 20% deposit or equity

HBSC is the first bricks and mortar bank in the Mozo comparison database to introduce a variable home loan rate as low as 2.65% (2.66% comparison rate*) for borrowers with a traditional 20% deposit, proving that banks can deliver real value. The loan comes with all of the features you'd expect from a bank, including free extra repayments, a free online redraw facility, an optional split account and a dedicated relationship manager to guide you through the application process. Available for loans between $50,000 and $7,500,000. 

Where do I get it? Head over to HSBC to find out 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 the amount and term you entered.

**Initial monthly repayment figures are estimates only, based on the advertised rate, and a loan of $500,000 repaid over 25 years. 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.

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

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