Shock home loan rate rises hitting Aussie wallets hard

23 Apr 2018

Despite the RBA not making a move on rates since August 2016, Mozo research has revealed that nearly half of Aussie borrowers have been stung by an out-of-cycle rate rise on their home loan.

What’s more, 44% of mortgage holders still have a rate above 4.00%, despite the fact that more than half the lenders in the Mozo database are offering rates below 3.70% to new customers.

“These rate rises mean loyal customers are copping raw deals that could be costing them tens of thousands of dollars, yet our research found that only 17% of borrowers are thinking about switching,” said Mozo Director Kirsty Lamont.

“If you’re not shopping around on your home loan rate, chances are you’re missing out on the best value deals out there and paying way more than you have to.”

So if you’re ready to switch to a home loan that saves you money, check out our comparison below of some of the top low rate home loans on the market right now and see how much you could save.

Low Rate Home Loans - May 2018

loans.com.au Essentials Variable 90

3.64% variable rate (3.66% comparison rate*)
No application or annual fees
Free extra repayments and redraw facility

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If you’re happy managing your mortgage online, the loans.com.au Essentials Variable 80 may be worth a look. With a low interest rate and features including free extra repayments, a redraw facility and the option to split your loan between fixed and variable rates, this one offers up plenty of opportunity for serious savings.

Bankwest Complete Variable Home Loan Special

3.70% variable rate (4.13% comparison rate)
$1,500 cashback when you apply by 8 May 2018 (for loans $200,000 or more)
Free extra repayments, redraw facility and up to 100% offset account available

With a competitive rate, no upfront fees, and a suite of handy, money-saving features up for grabs, the Bankwest Complete Variable Home Loan Special is a top choice for refinancers looking for a full package loan. Plus, for a limited time, owner-occupiers can snag $1,500 cashback!

State Custodians Low Rate Home Loan with Offset

3.64% variable rate (3.67% comparison rate)
$0 application or annual fee
100% offset account

Looking for stellar value? Be sure to check out the State Custodians Low Rate Home Loan with Offset. This loan comes with a competitive low rate, no application or ongoing service fees and a full suite of features including an offset account, free extra repayments, a redraw facility and the option to split between fixed and variable rates.

Bank Australia Basic Home Loan Special

3.65% variable rate (3.66% comparison rate*)
$0 application or annual fees
Choose weekly, fortnightly or monthly repayments

With a low interest rate and no upfront or ongoing fees to worry about, the Bank Australia Basic Home Loan is easy on your hip pocket. You’ll also have the option to split your loan between fixed and variable rates, make free extra repayments, use the redraw facility and take a repayment holiday if you need to.

Newcastle Permanent Discounted Variable Home Loan

3.64% variable rate (4.03% comparison rate*)
No upfront application fee ($395 annual fee applies)
100% offset account

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If you’re borrowing $150,000 or more, then you can snag a low 3.64% interest rate with Newcastle Permanent’s Discounted Variable Home Loan Premium Plus Package. Plus, you can cash in on money-saving features like a full offset account, free extra repayments and a redraw facility.

ME Flexible Home Loan

3.69% variable rate (4.11% comparison rate*)
No upfront fees (annual fee applies)
Offset account, free extra repayments and redraw facility

If you’re after a top value home loan package with all the bells and whistles, then don’t go past the Flexible Home Loan Member Package from ME. It comes with a super competitive interest rate and no upfront fees to worry about, plus a suite of features including free extra repayments, a redraw facility and a full offset account.

*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.

^See information about the Mozo Experts Choice Home loans Awards

Want more options for refinancing your home loan to a better deal? Head over to our comprehensive home loan comparison table to compare home loans side-by-side.