Refinancing? Keep low LVR home loans on your radar

By Katherine O'Chee and Evlin DuBose
Fact Checked
Advertiser disclosure
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

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 4 December 2023

Search promoted home loans below or do a full Mozo database search . Advertiser disclosure
  • Featured Product
    Mozo Expert Choice Badge
    Unloan Variable

    Owner Occupier, Refinance Only, LVR <80%

    interest rate
    comparison rate
    Initial monthly repayment
    5.74% p.a. variable
    5.65% p.a.

    For refinancers only. Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply in as little as 10 minutes.

    Go to site
    Details
  • Mozo Expert Choice Badge
    Variable Home Loan 90

    Principal and Interest, LVR <90%

    interest rate
    comparison rate
    Initial monthly repayment
    6.04% p.a. variable
    6.06% p.a.

    Affordable home loan rate for buyers or refinancers. No monthly or ongoing fees. Option to add an offset for 0.10%. Access to savings with unlimited redraws available. Minimum 10% deposit required. Advertised rates include Nov RBA rate increase. T&Cs apply.

    Go to site
    Details
  • Mortgage Simplifier

    LVR<80%, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    6.14% p.a. variable
    6.43% p.a.

    Get a competitive variable rate with ING’s Mortgage Simplifier. Free extra repayments, no monthly or annual fees. Freedom to make free extra repayments or redraws. Winner of Australia’s Best Essential Bank in the Mozo Experts Choice Awards.

    Details
  • Mozo Expert Choice Badge
    Variable Rate Home Loan Special Offer

    Package, Owner Occupier, Principal & Interest, LVR<80%

    interest rate
    comparison rate
    Initial monthly repayment
    6.14% p.a. variable
    6.51% p.a.

    Package benefits across Home Loans, Visa Credit Card, Personal Loans and Term Deposits. No package fee for the first year. No application, settlement or redraw fees to pay. Quick and easy application. Free CoreLogic RP Data property reports. *Terms, conditions and lending criteria apply.

    Go to site
    Details
  • Basic Home Loan

    Owner Occupier, LVR<70%, Principal & Interest

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

    Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 30% Deposit required.

    Go to site
    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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