The $80,000 not comparing your home loan might be costing you!

By Gabriella Margerison · Last updated Friday, 20 September 2024 · 1 min read

Fact Checked

Aussie borrowers looking to save big on their home loans may find that switching to a leading digital lender could be a financial game-changer. According to Mozo’s latest analysis, mortgage holders sticking with the big four banks- could be paying up to $83,619^ more over the life of their loan compared to those who switch to a digital lender*. That’s right, close to $80,000 just for being loyal.

While the average big 4 home loan rate in our database stands at 7.27% p.a.^, leading digital lenders offer significantly lower rates (including some owned by the big banks themselves). But with so many options out there, how do you know which one is the best for you?

At Mozo, we specialise in comparing home loans and helping point out some of the key deals in the market. Take Unloan, for example, this Mozo award-winning digital home loan from CommBank not only boasts a competitive low rate but also offers a unique loyalty discount of 0.01% p.a. each year. Bendigo Bank’s Express home loan comes with money-saving features like free offset and redraw facilities. For those who prefer fixed rates and quick approval times, Macquarie Bank’s 3-year fixed rate deal is worth considering.

To discover more about these standout digital lenders who could offer lower rates and how they can help you save thousands over the life of your home loan, compare below.

Compare leading digital lenders

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Important disclosures and comparison rate warning*

Important disclosures

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Comparison rate warning

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.

How Initial Monthly Repayments figures are estimated

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.

Unloan - Variable Home Loan

5.99% p.a. variable rate (5.90% p.a. comparison rate*)
Zero upfront or ongoing fees
Low cost home loan winner - Mozo Experts Choice Awards 2023 & 2024^

Go to site

Unloan’s Variable Home Loan has taken out a low cost home loan award for the second year running in the Mozo Experts Choice Awards^. Built by CommBank, Unloan offers owner-occupiers a super low 5.99% p.a. variable rate (5.90% p.a. comparison rate*) along with a loyalty discount that shaves 1 basis point off your interest every year for up to 30 years. Loan features include free extra repayments and redraw, and there are no pesky fees to pay. Available for loans of up to $10M. Minimum 20% deposit.

Where do I get it? Head over to Unloan to find out more >>

Macquarie - Offset Home Loan

Variable rates from 6.14% (6.16% comparison rate*) - minimum 40% deposit
100% offset account, redraw facility and extra repayments
Get up to 10 free offset accounts per loan

Find out more

This competitive packaged home loan from Macquarie has all the bells and whistles you'd expect of Australia's fifth largest lender, including 100% offset (up to 10 free offset accounts per loan account), free extra repayments and online redraws, a split loan option and even repayment holidays for those times in life when you need to hit pause. There's a $248 annual package fee but no application fee to worry about.

Bendigo Bank Express Home Loan

6.09% p.a. variable rate (6.22% p.a. comparison rate*)
Offset account and redraw facility
2024 Mozo Experts Choice Low Cost Home Loan winner

Find out more

The Express Home Loan is only available online and has the lowest variable rate of Bendigo Bank home loans at 6.09% p.a. (6.22% p.a. comparison rate*). It also comes with generous features to help you save on interest including an offset account, redraw facility and the ability to make free extra repayments. You’ll be able to borrow up to $10 million and have the flexibility to split. Just a 10% deposit is required and Bendigo says you could get fast online approval in as little as an hour.

loans.com.au 3 Year Special Fixed Home Loan

3 year fixed rate of 5.69% p.a (6.16% p.a. comparison) for borrowers with a 90% LVR
No monthly or ongoing fees
Up to $10,000/yr extra repayment/year

Find out more

Enjoy repayment security for new purchases or refinancers with the loans.com.au 3 Year Special Fixed Home Loan. There are no monthly or ongoing fees to pay and you can split your mortgage with a variable rate if desired. Pay up to $10,000/yr in extra repayment per year to help pay down your home loan sooner. Minimum 10% deposit required. $300 settlement fee and no redraw facility.

First Option Bank Simple Home Loan

5.99% p.a. variable rate (5.99% p.a. comparison rate*)
No ongoing or monthly fees
Free redraw facility

Find out more

Enjoy the benefits of a low variable rate which features no application, ongoing or monthly fees to pay. You’ll have access to your money via internet banking at any time, as well as the convenience of free redraws. You can make additional repayments at any time to pay your mortgages off sooner too. Available for owner occupied, investment and interest only repayments.

Bendigo Bank Express Fixed Home Loan

5.54% p.a. 2 year fixed rate (6.11% p.a. comparison rate*)
Offset account and redraw facility
2024 Mozo Experts Choice Exceptional Home Lender^

Find out more

The online-only Express Home Loan allows live-in borrowers to lock in a 2 year fixed rate of 5.54% p.a. (6.11% p.a. comparison rate*). Other fixed rate terms are available up to 5 years. You'll also net features to help you save on interest including an offset account, redraw facility and the ability to make free extra repayments (of up to 20% in fixed period). You can borrow up to $10 million and have the flexibility to split. Only a 10% deposit is required. Keep in mind that there is a $10 monthly service fee and a $134 electronic valuation fee.

^Based on the Mozo database, an average big four rate of 7.27% p.a. vs average digital lender rate of 6.39% p.a., a loan amount of $500K, LVR 80%, a 25 year term, owner occupier loan with principal & interest repayments, as at 11th of Sept 2024.

^* 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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