Smaller lenders with low rates homebuyers should know

By Jack Dona · · 2 min read
Fact Checked
Advertiser disclosure
A small model house on a table

The thirteenth Reserve Bank of Australia (RBA) cash rate hike has pushed smaller home loan lenders to raise interest rates in November. So, where do the opportunities lie for borrowers searching for a great rate?  

Typically, we see smaller home loan lenders offer lower interest rates than the big banks. Fortunately, according to the Mozo database, that’s still true: 

The average owner-occupied variable home loan from the Big 4 (borrowing $400,000 at 80% LVR), sits at a heady 7.21% p.a., at the time of writing. Compare that to the average rate across all of the home loans Mozo compares, at 6.63% p.a., and the pressure lifts a little. 

Still, half of the variable home loan interest rates in the Mozo database sit below 6.34% p.a., 0.87% p.a. less than the average Big 4 rate. Hypothetically, this could spell a $220 difference in monthly repayments, helping to significantly shave down your expenses.

Who offers the lowest variable home loan rates right now? 

As of 13 November 2023, the lowest variable rates in the Mozo database, for those borrowing $400,000, are: 

  • Homeloans360 | Owner Variable Home Loan (Plus, OO, P&I, LVR <80%) | 5.59% p.a. (5.59% p.a. comparison rate*)
  • Pacific Mortgage Group | Standard Variable Home Loan (OO, P&I, LVR 60-80%) | 5.59% p.a. (5.59% p.a. comparison rate*)
  • Police Bank | First Home Loan Variable (OO, P&I, LVR <90%) | 5.59% p.a. (5.67% p.a. comparison rate*). 
  • Community First Bank | Basic Variable Home Loan (OO, P&I, LVR <95%) | 5.69% p.a. (5.74% p.a. comparison rate*). 
  • Resi | Agility Variable Home Loan (OO, P&I, LVR 70-80%) | 5.69% p.a. (5.74% p.a. comparison rate*).

In fact, the Mozo database counted 102 lenders offering rates below 6% p.a., at a range of loan-to-value ratio (LVR) tiers. 

That’s why it’s so important for borrowers to compare home loans – especially when you consider how much money you stand to save just by securing a lower interest rate. 

Get started with some of the featured rates below, or check out the best home loans in Australia to learn about 2023’s award-winning lenders.

Mozo may receive payment if you click products on our site. We don’t compare the entire market, but you can compare more home loans here.
Last updated 5 December 2025 Important disclosures and comparison rate warning*
What are your home loan needs?
Loan purpose
Buying or Refinancing
  • Promoted

    Unloan Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    5.19 % p.a.
    Variable
    Comparison rate
    5.10 % p.a.
    Initial monthly repayment
    $2,742
    Go to site
    • The first home loan with an automatic loyalty discount (conditions apply)
    • No application or banking fees
    • Built by CommBank

  • First Home Buyer Loan

    • Owner occupier
    • Principal & Interest
    • 5% min deposit
    • For first home buyers
    • Offset available
    • Redraw available
    Interest rate
    4.99 % p.a.
    Variable
    Comparison rate
    5.04 % p.a.
    Initial monthly repayment
    $2,681
    Go to site
    • Competitive interest rate – 4.99% p.a. (comparison rate* 5.04% p.a.)
    • Offset account to reduce interest and save on repayments
    • No establishment or monthly fees, plus valuation fees waived up to $1,000 (limited time)

  • Unloan Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    5.19 % p.a.
    Variable
    Comparison rate
    5.10 % p.a.
    Initial monthly repayment
    $2,742
    Go to site
    • The first home loan with an automatic loyalty discount (conditions apply)
    • No application or banking fees
    • Built by CommBank

  • Discount Great Rate Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    • Cashback
    Interest rate
    5.19 % p.a.
    Variable
    Comparison rate
    5.20 % p.a.
    Initial monthly repayment
    $2,742
    Go to site
    • Get up to $3,000 cashback when you apply online (T&Cs apply)
    • No paperwork or payslips required (see site for details)
    • Low variable rate

  • Variable Home Loan 90

    • Owner occupier
    • Principal & Interest
    • 10% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.29 % p.a.
    Variable
    Comparison rate
    5.33 % p.a.
    Initial monthly repayment
    $2,773
    Go to site
    • No monthly or ongoing fees
    • Option to add an offset for 0.10% p.a.
Showing 4 results from 379 home loans. Use the filters to see more

Want free expert advice on your home loan?

Whether you’re looking to purchase a new home or refinance your existing loan, our friends at Aussie can help! Book a free appointment for your weekly chance at $10K (T&Cs apply).

Learn 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 $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.

Compare home loans