Refinancing? Keep low LVR home loans on your radar

Collage of people stacking red equity blocks in towers.

Given that $19.3 billion worth of home loans were refinanced in April, it’s clear many Australian homeowners are jumping at the opportunity to switch to ultra-low rates and save on interest.

When shopping around, it pays for refinancers to remember they have one big advantage over first home buyers that could help them snag an even better deal: their loan-to-value ratio (LVR) – or the percentage of their property owed to the bank – tends to be lower. 

That’s because refinancers would have naturally built up equity in their home over the years of paying down their mortgage, therefore owning a larger portion of their property. Not to mention, their property value may have also gone up due to a renovation or increased demand in the area.

Having a lower LVR could get you cheaper rates, which borrowers with a standard 20% deposit aren’t able to access. In fact, there’s been an interesting trend of lenders serving up their top rate discounts to customers with LVRs as low as 60%.

Take Athena’s AcceleRATES Variable Home Loan, for instance, which automatically rewards borrowers with better rates as they pay down their mortgage and enter lower LVR tiers.

Check out a few options for low LVR deals below.

70% LVR home loan deal

loans.com.au - Variable Home Loan 70
  • Interest rates from 5.85% p.a. (5.87% p.a. comparison rate*)
  • No monthly or ongoing fees
  • 2023 Mozo Experts Choice Home Loan Award winner in the "Low Cost Home Loan" category
Find out more

Online lender loans.com.au is offering a killer deal to owner occupiers borrowing up to $1 million with at least 30% in home equity. Variable rates start from 5.85% p.a. (5.87% p.a. comparison rate*), and there are no application or ongoing fees to worry about (though there are other upfront frees like a settlement charge). Plus, you get to make as many free extra repayments as you’d like, with the option to redraw those funds should you need to. An offset account is also available with an additional 0.10% interest.

Head to our hub page for more information on loans.com.au's 2023 Mozo Experts Choice Home Loans win.

60% LVR home loan deal

Macquarie - Basic Home Loan
  • Variable rates from 5.54% (5.56% comparison rate*)
  • No upfront or ongoing service fees
  • Macquarie won Australia's Best Bank at the 2022 Mozo Experts Choice Banking Awards

Macquarie rewards its borrowers with a 60% LVR in more ways than one. On top of minimal fees and competitive variable rates from 5.54% (5.56% comparison rate*), you’ll also have access to features including free extra repayments and redraws and a split loan account (T&Cs apply). Plus, if you tack on a Macquarie transaction account, you could get discounts at 60 online shopping outlets through the Macquarie Marketplace (T&Cs).  

Head over to our hub page for more information on Macquarie's 2023 Mozo Experts Choice Bank Awards win. 

Looking for a home loan? Head on over to our refinance home loans comparison hub to shop around, or browse the table below.

Compare refinance home loans - last updated 28 March 2024

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure
  • Offset Home Loan

    Package, Owner Occupier, LVR<60%, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    6.15% p.a. variable
    6.40% p.a.

    Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.

    Compare
    Details
  • Mozo Expert Choice Badge
    Express Home Loan

    Owner Occupier, Principal & Interest, LVR <90%

    interest rate
    comparison rate
    Initial monthly repayment
    6.01% p.a. variable
    6.14% p.a.

    Get fast online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.

    Compare
    Details
  • Neat Home Loan

    Owner Occupier, Principal & Interest, LVR <60%

    interest rate
    comparison rate
    Initial monthly repayment
    6.14% p.a. variable
    6.16% p.a.

    Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.

    Compare
    Details
  • OMG Home Loan

    Owner Occupier, Principal & Interest, <60% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    5.99% p.a. variable
    6.00% p.a.

    BCU Bank’s OMG owner occupied home loan offers a variety of great low rates depending on your deposit. Save with no ongoing annual fees. Access your extra payments when you need to through the redraw facility. Pre-approval valid for 3 months.

    Compare
    Details

* 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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