The 0.5% club: These 6 home loan lenders passed on the full RBA cut twice

It’s been nine days since the RBA decided to drop the official cash rate to a record low 1.00% and since then a large number of home loan providers have signalled their intention to reduce rates on their respective variable mortgage offers.
However, unlike the response to the RBA’s June rate cut, many lenders have made the decision not to pass on the 0.25% cut in full.
In fact, at the time of writing, just six home loan providers^ in the Mozo database have dropped, or indicated their intention to drop, their variable rate offers by 0.25% this month - totalling 0.5% since June.
0.25% cut date | Select Variable Offer | Current Rate | |
---|---|---|---|
Athena | Already applied | Variable Home Loan | 3.09% (3.09% comparison rate*) |
Greater Bank | 29 July | Great Rate Home Loan | 3.57% (3.59% comparison rate*) |
Homestar | Already applied | Star Essentials Home Loan | 2.99% (2.99% comparison rate*) |
Newcastle Permanent | 29 July | Real Deal Home Loan | 3.49% (3.49% comparison rate*) |
RACQ Bank | Already applied | Mortgage Saver Special | 3.19% (3.19% comparison rate*) |
UBank | 2 August | UHomeLoan - Discount Offer | 3.34% (3.34% comparison rate*) |
First off the block were online lenders Athena and Homestar who both passed on the full 0.25% cut just minutes after the RBA made their announcement.
Queensland-based lender RACQ Bank has also already made a 25 basis point cut to their variable rate offers, while Greater Bank (29 July), Newcastle Permanent (29 July) and UBank (2 August) will all make adjustments in the coming weeks.
Of the major banks, ANZ proved the only lender to pass on the full 0.25% cut this month, though this is perhaps unsurprising after they were roundly pilloried for only cutting variable rate home loans by 0.18% following the June RBA decision.
Meanwhile both the Commonwealth Bank and NAB dropped variable rates by 0.19%, while Westpac chose to reduce its own variable rates by 0.20% - making it the only major bank not to pass on at least one of the rate cuts in full.
June Rate Cut | July Rate Cut | Total of both cuts | |
ANZ | 0.18% | 0.25% | 0.43% |
Commonwealth Bank | 0.25% | 0.19% | 0.44% |
---|---|---|---|
NAB | 0.25% | 0.19% | 0.44% |
Westpac | 0.20% | 0.20% | 0.40% |
How much could a larger rate cut save mortgage holders?
So when it comes down to it, just how much valuable would a 0.10% or 0.20% difference in rate reduction be for a borrower?
Let’s use Simon and Elle as an example. The couple have a $400,000 mortgage, an LVR of 80% and are going to be making principal and interest repayments on the loan for the next 25 years. They also had a 4.00% interest rate before the double RBA rate cuts.
According to the Mozo home loan repayments calculator, if Simon and Elle’s lender dropped their variable home loan rate in line with the RBA’s full 0.50% basis points cut - so a new rate of 3.50% - the couple’s repayments would drop to $2,002 per month.
However, if their lender decided to hold part of that cut back - passing on 0.40% instead - their new rate would be 3.60% and their monthly repayments would total $2,024 instead.
While that might not seem much, that extra $22 per month actually works out at $6,455 in additional interest over the 25 year loan period.
RELATED: Back to back cuts: The RBA drops official interest rates to 1.00%
-
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Unloan Variable Home Loan
- Owner occupier
- Principal & Interest
- 20% min deposit
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- Interest rate
-
5.74
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- Comparison rate
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5.65
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- Initial monthly repayment
-
$2,915
- Built by CommBank
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5.74% p.a. (5.65% p.a. comparison rate)
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n/a
- Upfront fees
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80.00%
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$10,000
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Variable
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Principal & Interest
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Owner Occupier
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Weekly, Fortnightly, Monthly
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yes - free
- Redraw facility
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yes - free
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- Offset account
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no
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- Interest rate
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5.78
%
p.a.
Variable
- Comparison rate
-
5.82
%
p.a.
- Initial monthly repayment
-
$2,927
- $0 application fee to pay
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- interest rate
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5.78% p.a. (5.82% p.a. comparison rate)
- Fixed loan revert rate
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n/a
- Upfront fees
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$495.40
- Ongoing fees
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$0.00
- Discharge Fee
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$325.00
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- Maximum loan to value ratio
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90.00%
- minimum borrowing amount
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$50,000
- maximum borrowing amount
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$3,000,000
- type of mortgage
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Variable
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Principal & Interest
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Owner Occupier
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Weekly, Fortnightly, Monthly
- Extra repayments
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yes - free
- Redraw facility
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yes - free online, fees apply for assisted redraws
- Minimum redraw amount
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$1.00
- Offset account
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yes - optional for $10 per month - comparison rate does not include this fee.
- Split account
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-
- Other restrictions
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Settlement fee comprises of upfront fee and loan processing fee. Valuation fee varies. Comparison rates displayed do not take into account the Optional Offset Account monthly fee.
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5.39
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- Comparison rate
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5.82
%
p.a.
- Initial monthly repayment
-
$2,805
- No ongoing fees
- Free redraw from your loan using Macquarie Online.
- No application or account management fees
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-
1 year - 5.49% p.a. (5.87% p.a. comparison rate)
2 years - 5.39% p.a. (5.82% p.a. comparison rate)
3 years - 5.39% p.a. (5.77% p.a. comparison rate)
4 years - 5.59% p.a. (5.81% p.a. comparison rate)
5 years - 5.59% p.a. (5.78% p.a. comparison rate)
- Fixed loan revert rate
-
5.89% p.a.
- Upfront fees
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$350.00
- Ongoing fees
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$0.00
- Discharge Fee
-
$400.00
- Package
-
-
- Maximum loan to value ratio
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70.00%
- minimum borrowing amount
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$150,000
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$10,000,000
- type of mortgage
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Fixed
- Repayment types
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Principal & Interest
- Availability
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Owner Occupier
- Repayment options
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Monthly
- Extra repayments
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yes - up to $10,000 p.a.
- Redraw facility
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yes - free
- Minimum redraw amount
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- Offset account
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no
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yes
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5.49
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Fixed 2 years
- Comparison rate
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5.91
%
p.a.
- Initial monthly repayment
-
$2,836
- No ongoing annual fees
- Make up to $25,000 extra repayments during a fixed period, fee free (T&Cs apply)
- Lock in for up to 5 years.
- interest rate
-
1 year - 5.69% p.a. (5.98% p.a. comparison rate)
2 years - 5.49% p.a. (5.91% p.a. comparison rate)
3 years - 5.59% p.a. (5.90% p.a. comparison rate)
4 years - 6.49% p.a. (6.19% p.a. comparison rate)
5 years - 6.49% p.a. (6.23% p.a. comparison rate)
- Fixed loan revert rate
-
5.98% p.a.
- Upfront fees
-
$300.00
- Ongoing fees
-
$0.00
- Discharge Fee
-
$395.00
- Package
-
-
- Maximum loan to value ratio
-
95.00%
- minimum borrowing amount
-
$20,000
- maximum borrowing amount
-
$5,000,000
- type of mortgage
-
Fixed
- Repayment types
-
Principal & Interest
- Availability
-
Owner Occupier
- Repayment options
-
Weekly, Fortnightly, Monthly
- Extra repayments
-
yes - free up to $25,000 during fixed period
- Redraw facility
-
no
- Minimum redraw amount
-
-
- Offset account
-
no
- Split account
-
yes
- Other restrictions
-
Additional repayments allowed up to $25,000 during the fixed period.
- Other benefits
-
-
- Special Offers
-
-
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Fixed Rate Home Loan
- Fixed rate
- Owner occupier
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- 20% min deposit
- Interest rate
-
5.49
%
p.a.
Fixed 2 years
- Comparison rate
-
5.96
%
p.a.
- Initial monthly repayment
-
$2,836
- Free extra repayments of up to $25,000 during the fixed rate period.
- Split loan available
- Weekly, fortnightly, or monthly repayment options
- interest rate
-
1 year - 5.69% p.a. (6.03% p.a. comparison rate)
2 years - 5.49% p.a. (5.96% p.a. comparison rate)
3 years - 5.59% p.a. (5.94% p.a. comparison rate)
4 years - 6.49% p.a. (6.23% p.a. comparison rate)
5 years - 6.49% p.a. (6.26% p.a. comparison rate)
- Fixed loan revert rate
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6.04% p.a.
- Upfront fees
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$300.00
- Ongoing fees
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$0.00
- Discharge Fee
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$395.00
- Package
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-
- Maximum loan to value ratio
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80.00%
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$20,000
- maximum borrowing amount
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-
- type of mortgage
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Fixed
- Repayment types
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Principal & Interest, Interest Only
- Availability
-
Owner Occupier
- Repayment options
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Monthly
- Extra repayments
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yes - free up to $25,000 during fixed period
- Redraw facility
-
no
- Minimum redraw amount
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-
- Offset account
-
no
- Split account
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yes
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Legal and valuation fees charged at cost.
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Variable Home Loan 90
- Owner occupier
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- Redraw available
- Interest rate
-
5.79
%
p.a.
Variable
- Comparison rate
-
5.83
%
p.a.
- Initial monthly repayment
-
$2,931
- No monthly or ongoing fees
- Option to add an offset for 0.10% p.a.
- interest rate
-
5.79% p.a. (5.83% p.a. comparison rate)
- Fixed loan revert rate
-
n/a
- Upfront fees
-
$530.00
- Ongoing fees
-
$0.00
- Discharge Fee
-
$0.00
- Package
-
-
- Maximum loan to value ratio
-
90.00%
- minimum borrowing amount
-
$50,000
- maximum borrowing amount
-
$2,000,000
- type of mortgage
-
Variable
- Repayment types
-
Principal & Interest
- Availability
-
Owner Occupier
- Repayment options
-
Weekly, Fortnightly, Monthly
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Minimum redraw amount
-
$0.00
- Offset account
-
yes
- Split account
-
yes
- Other restrictions
-
Offset sub-account available for additional +0.10%. $300 discharge fee and $250 discharge documentation fee applicable if loan doesnt go to full term.
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-
-
- Special Offers
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-
Basic Home Loan
- Fixed rate
- Owner occupier
- Principal & Interest
- 30% min deposit
- Redraw available
- Interest rate
-
5.39
%
p.a.
Fixed 2 years
- Comparison rate
-
5.82
%
p.a.
- Initial monthly repayment
-
$2,805
- No ongoing fees
- Free redraw from your loan using Macquarie Online.
- No application or account management fees
- interest rate
-
1 year - 5.49% p.a. (5.87% p.a. comparison rate)
2 years - 5.39% p.a. (5.82% p.a. comparison rate)
3 years - 5.39% p.a. (5.77% p.a. comparison rate)
4 years - 5.59% p.a. (5.81% p.a. comparison rate)
5 years - 5.59% p.a. (5.78% p.a. comparison rate)
- Fixed loan revert rate
-
5.89% p.a.
- Upfront fees
-
$350.00
- Ongoing fees
-
$0.00
- Discharge Fee
-
$400.00
- Package
-
-
- Maximum loan to value ratio
-
70.00%
- minimum borrowing amount
-
$150,000
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$10,000,000
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Fixed
- Repayment types
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Principal & Interest
- Availability
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Owner Occupier
- Repayment options
-
Monthly
- Extra repayments
-
yes - up to $10,000 p.a.
- Redraw facility
-
yes - free
- Minimum redraw amount
-
-
- Offset account
-
no
- Split account
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yes
- Other restrictions
-
-
- Other benefits
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- Special Offers
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Read reviews and learn more about Macquarie home loans
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Mozo experts choice awards won:
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2-Year Discounted - Simple Home Loan Variable
- Owner occupier
- Principal & Interest
- 40% min deposit
- Redraw available
- Interest rate
-
5.49
%
p.a.
Variable for 24 months and then 5.74% p.a.
- Comparison rate
-
5.69
%
p.a.
- Initial monthly repayment
-
$2,836
- interest rate
-
5.74% p.a. (5.69% p.a. comparison rate)
- Fixed loan revert rate
-
n/a
- Upfront fees
-
$0.00
- Ongoing fees
-
$0.00
- Discharge Fee
-
$175.00
- Package
-
-
- Maximum loan to value ratio
-
60.00%
- minimum borrowing amount
-
$300,000
- maximum borrowing amount
-
$2,000,000
- type of mortgage
-
Variable
- Repayment types
-
Principal & Interest
- Availability
-
Owner Occupier
- Repayment options
-
Weekly, Fortnightly, Monthly
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Minimum redraw amount
-
$0.00
- Offset account
-
no
- Split account
-
yes
- Other restrictions
-
Valuation and legal fees covered up to $1,000. Anything above this charged at cost. Only available through the exclusive link. Capital city or major regional centre only.
- Other benefits
-
-
- Special Offers
-
-
Read reviews and learn more about First Option Bank home loans
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Fixed Rate Home Loan
- Fixed rate
- Owner occupier
- Principal & Interest
- 5% min deposit
- Interest rate
-
5.49
%
p.a.
Fixed 2 years
- Comparison rate
-
5.91
%
p.a.
- Initial monthly repayment
-
$2,836
- No ongoing annual fees
- Make up to $25,000 extra repayments during a fixed period, fee free (T&Cs apply)
- Lock in for up to 5 years.
- interest rate
-
1 year - 5.69% p.a. (5.98% p.a. comparison rate)
2 years - 5.49% p.a. (5.91% p.a. comparison rate)
3 years - 5.59% p.a. (5.90% p.a. comparison rate)
4 years - 6.49% p.a. (6.19% p.a. comparison rate)
5 years - 6.49% p.a. (6.23% p.a. comparison rate)
- Fixed loan revert rate
-
5.98% p.a.
- Upfront fees
-
$300.00
- Ongoing fees
-
$0.00
- Discharge Fee
-
$395.00
- Package
-
-
- Maximum loan to value ratio
-
95.00%
- minimum borrowing amount
-
$20,000
- maximum borrowing amount
-
$5,000,000
- type of mortgage
-
Fixed
- Repayment types
-
Principal & Interest
- Availability
-
Owner Occupier
- Repayment options
-
Weekly, Fortnightly, Monthly
- Extra repayments
-
yes - free up to $25,000 during fixed period
- Redraw facility
-
no
- Minimum redraw amount
-
-
- Offset account
-
no
- Split account
-
yes
- Other restrictions
-
Additional repayments allowed up to $25,000 during the fixed period.
- Other benefits
-
-
- Special Offers
-
-
Read reviews and learn more about BCU Bank home loans
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Fixed Rate Home Loan
- Fixed rate
- Owner occupier
- Principal & Interest
- Interest only
- 20% min deposit
- Interest rate
-
5.49
%
p.a.
Fixed 2 years
- Comparison rate
-
5.96
%
p.a.
- Initial monthly repayment
-
$2,836
- Free extra repayments of up to $25,000 during the fixed rate period.
- Split loan available
- Weekly, fortnightly, or monthly repayment options
- interest rate
-
1 year - 5.69% p.a. (6.03% p.a. comparison rate)
2 years - 5.49% p.a. (5.96% p.a. comparison rate)
3 years - 5.59% p.a. (5.94% p.a. comparison rate)
4 years - 6.49% p.a. (6.23% p.a. comparison rate)
5 years - 6.49% p.a. (6.26% p.a. comparison rate)
- Fixed loan revert rate
-
6.04% p.a.
- Upfront fees
-
$300.00
- Ongoing fees
-
$0.00
- Discharge Fee
-
$395.00
- Package
-
-
- Maximum loan to value ratio
-
80.00%
- minimum borrowing amount
-
$20,000
- maximum borrowing amount
-
-
- type of mortgage
-
Fixed
- Repayment types
-
Principal & Interest, Interest Only
- Availability
-
Owner Occupier
- Repayment options
-
Monthly
- Extra repayments
-
yes - free up to $25,000 during fixed period
- Redraw facility
-
no
- Minimum redraw amount
-
-
- Offset account
-
no
- Split account
-
yes
- Other restrictions
-
Legal and valuation fees charged at cost.
- Other benefits
-
-
- Special Offers
-
-
Read reviews and learn more about P&N Bank home loans
Go to site
Your selected home loans
Paying over the odds with your current lender? Orchestrate a rate cut of your own by checking out some of the hot refinancing deals below, or head over to Mozo’s home loan comparison hub for even more options.
^As of publishing date, there are still a handful of home loan providers in the Mozo database who did cut variable rate offers by 0.25% following the June RBA decision, but are yet to make an announcement following the July decision.
* 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.