September home loan snapshot: Westpac headlines rate cuts, cashback deals grow

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Spring is officially here and with it comes what is traditionally the country's busiest property season, which means plenty of Aussies may be considering upsizing, downsizing or even buying their first home in the coming months.

Of course, for most buyers, that will involve a home loan. And the good news for borrowers on that front is that competition in the mortgage market is alive and well, as many lenders have continued to reduce their home loan rates in a bid to attract new customers.

So if you’ve got your eye on a property move or you’re looking to refinance an existing loan, you’ll probably be interested in taking a look at the latest cuts and new deals from lenders, plus our database averages and lowest rates - all of which are wrapped up below. 

Variable and fixed rate changes 

Variable home loan rates just keep dropping. That’s perhaps the most significant trend we’ve continued to see in the home loan market, as a number of lenders have taken out their knives to sharpen rates in recent weeks. Some of the more notable variable rate changes include:

  • Bendigo Bank took 10bp off its Express Home Loan for owner occupiers (<80% LVR), meaning the new variable rate is 2.09% p.a (2.26% p.a. comparison rate*)
  • BOQ released a new special offer for borrowers with lower debt-to-income ratios. Owner occupiers with a 70-80% LVR and a debt-to-income ratio below six can grab a variable rate of 2.03% p.a. (2.20% p.a. comparison rate*) with the Economy Variable Home Loan
  • UBank reduced the variable rate for investors (<80% LVR) on its UHomeLoan - Investor Extra Offer by 19 basis points to a new rate of 2.55% p.a. (2.55% p.a. comparison rate*)
  • Westpac cut its Flexi First Option loan by 20bp. That means the new variable rate available to owner occupiers (<80% LVR) is 2.59% p.a. (2.52% p.a. comparison rate*), and there is also a 2-year introductory rate of 2.09% p.a. (2.52% p.a. comparison rate*)

As a result of these cuts and more, the average variable rate for owner occupiers in the Mozo database has dropped to a new low of 3.15% which, for context, is 21bp lower than the average rate of 3.36% recorded in September 2020.

Things have been a bit more stable on the fixed home loan front, with shorter term fixed rates (1, 2 and 3-year terms) continuing to remain lower than rates on longer fixed terms (4 and 5-years). Here are some of the notable changes from recent weeks:

  • 86 400 made a number of cuts to its Own Home Loan (Fixed). These include a 14bp cut to the 3-year fixed rate for owner occupiers (<80% LVR) which is now 1.85% p.a. (2.58% p.a. comparison rate*) - the lowest in our database for that term
  • Commonwealth Bank cut 5bp off the 2-year fixed rate term on its Fixed Rate Home Loan (Wealth Package) for owner occupiers (<95% LVR), meaning the new rate is 1.99% p.a. (3.94% p.a. comparison rate*)
  • ME reduced the 2-year fixed rate for owner occupiers (<80% LVR) on its Flexible Home Loan (Member Package) by 20bp to 1.89% p.a. (3.17% p.a. comparison rate*)

Lowest home loan rates

Those are some of the recent rate changes, but what are the lowest mortgage rates you ask? Well, here’s a look at the lowest rates in the Mozo database currently available to owner occupiers (P&I repayments, <80% LVR), though it’s worth pointing out that many lenders are offering even sharper rates for borrowers with lower LVRs.

Lowest variable rates - Mozo database (September 1, 2021)^^

LenderLoanVariable rate
Reduce Home LoansSuper Saver1.88% (1.97% comparison rate*)
Tic:TocVariable Home Loan1.89% (1.90% comparison rate*)
Police Credit UnionBetter Home Loan1.89% (1.93% comparison rate*)
HomestarStar Essentials1.99% (2.02% comparison rate*)
Well Home LoansWell Balanced1.99% (2.02% comparison rate*)

Lowest and average fixed rates - Mozo database (September 1, 2021)^^

TermRate leaderFixed rateMozo average
1-yearGreater Bank1.69% (3.50% comparison rate*)2.28%
2-yearHomestar1.79% (2.12% comparison rate*)2.22%
3-year86 4001.85% (2.58% comparison rate*)2.33%
4-yearTeachers Mutual Bank2.14% (2.90% comparison rate*)2.58%
5-yearFreedomlend2.47% (2.14% comparison rate*)2.79%

Cashback deals grow

Away from interest rates, the trend towards lenders offering cashback deals in the thousands of dollars to eligible new customers - particularly refinancers - shows no signs of letting up.

In the past few days a number of banks, including BOQ and Suncorp, have extended their existing cashback offers for refinancers, while customer-owned bank bcu made headlines in August with the launch of a new cashback deal worth up to $5,000 for eligible customers.

There are currently over 20 cashback deals on offer from lenders being tracked in the Mozo database, which range from $1,500 up to $5,000.

Mozo spokesperson, Tom Godfrey, recently urged borrowers to take the time to weigh up any upfront cash offers against the interest rate and fees associated with a loan though. 

“Lenders offer cashback incentives for various reasons and it’s not always to get you into their best value loan,” he said.

“It’s worth remembering that one of the best ways to improve your cash position is tapping into the best rate you can find and avoiding higher monthly repayments.”

RELATED: Multiple lenders are offering $3,000 cashback to refinance your home loan

Ready to make the most of the low mortgage rates being offered at the moment? Get started right away by checking out the great offers in the table below, or to compare an even larger selection of loans, head on over to our dedicated home loan comparison tables.

Home loan comparisons on Mozo

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 27 July 2024 Important disclosures and comparison rate warning*
  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    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 online in minutes.

  • Basic Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    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. 40% Deposit required.

  • Neat Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.11 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    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.

  • Special Real Deal Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <80%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.13 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    Refinancers or first home buyers pay no monthly or annual fees. Up to $3,000 cashback when you complete your home loan application online. $2,000 cashback on loans ≥$250K; or $3,000 cashback on loans ≥$500K. LVR ≤80%. T&Cs and credit criteria apply.

  • Optimum Fixed Rate Home Loan

    • Owner Occupier
    • Principal & Interest
    Interest rate
    5.69 % p.a.
    Fixed 3 years
    Comparison rate
    6.34 % p.a.
    Initial monthly repayment
    $2,899
    Go to site

    Lock in a competitive interest rate and enjoy peace of mind for the fixed period. Available for owner occupied new and refinanced home loans with at least 20% deposit. Split option available as well as offset and redraw. Noapplication, ongoing or banking fees. Third Party fees may be applicable - payable within loan repayments. Extra repayments up to $20K per annum permitted. Apply online, 100% member owned credit union.

  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    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 online in minutes.

  • OMG Home Loan

    • Owner Occupier
    • Principal & Interest
    • <60% LVR
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    6.02 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    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.

  • Flex Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    5.99 % p.a.
    Fixed 3 years
    Comparison rate
    6.34 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Competitive Fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.

  • Express Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <90%
    Interest rate
    6.01 % p.a.
    Variable
    Comparison rate
    6.14 % p.a.
    Initial monthly repayment
    $3,001
    Go to site

    Get 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.

  • Neat Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.11 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    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.

  • Special Real Deal Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <80%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.13 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    Refinancers or first home buyers pay no monthly or annual fees. Up to $3,000 cashback when you complete your home loan application online. $2,000 cashback on loans ≥$250K; or $3,000 cashback on loans ≥$500K. LVR ≤80%. T&Cs and credit criteria apply.

  • Basic Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    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. 40% Deposit required.

  • Flex Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.38 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Competitive variable rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.

  • Offset Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.39 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    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.

  • Basic Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR<70%
    Interest rate
    6.25 % p.a.
    Fixed 3 years
    Comparison rate
    6.20 % p.a.
    Initial monthly repayment
    $3,079
    Go to site

    No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $10,000,000.

  • Offset Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR <70%
    Interest rate
    6.25 % p.a.
    Fixed 3 years
    Comparison rate
    6.42 % p.a.
    Initial monthly repayment
    $3,079
    Go to site

  • Fixed Rate

    • Owner Occupier
    • Principal & Interest
    • <80% LVR
    Interest rate
    6.54 % p.a.
    Fixed 2 years
    Comparison rate
    7.10 % p.a.
    Initial monthly repayment
    $3,174

    Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.

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Need help with refinancing?

You might have questions that need personal answers. We’ve teamed up with the mortgage brokers at Lendi to get you the answers you need, and a home loan deal you deserve.

Learn more

^^Interest rates are based on an owner occupier making principal and interest repayments on a $400,000 loan with an 80% LVR. For more information on average mortgage rates, check out our dedicated Australian home loan statistics page.

* 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

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.