The magic home loan number you need to know
14 May 2018
We talk a lot about how important it is to find a great home loan deal, but do you really know what that means?
New research from the home loan comparison experts at Mozo reveals that 3.70% is the new benchmark for home loan rates, so if your rate is higher than this, you could be paying too much interest.
Despite the fact that half the lenders in the Mozo database currently offer an owner occupier rate at or below the magic number, many Aussies are still paying too much on their mortgage, with the average rate sitting at a steep 4.35%.
“By being on the lookout for more competitive rates under the 3.70% benchmark, borrowers have the potential to save thousands of dollars a year on their home loan,” says Mozo Director, Kirsty Lamont.
Snag a low rate home loan today - rates updated daily
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Promoted
loans.com.au
2.57% p.a.
2.59% p.a.
$1234
Product details Close detailsloans.com.au Smart Home Loan 80
Owner Occupier, Principal & Interest
2.57% p.a.
2.59% p.a.
A low-rate home loan that could save you thousands, with no ongoing fees plus unlimited extra repayments and free redraws. Mozo Experts Choice Low Cost Home Loan 2020.^ 20% deposit required. Limited time only.
Smart Home Loan 80
A low-rate home loan that could save you thousands, with no ongoing fees plus unlimited extra repayments and free redraws. Mozo Experts Choice Low Cost Home Loan 2020.^ 20% deposit required. Limited time only.
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2.57% p.a.
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2.59% p.a.
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$520
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$0.00
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$0.00
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yes - free
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yes - free
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no
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80.00%
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$520
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$50,000
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$1,000,000
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Variable
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Principal & Interest
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Owner Occupier
-
Weekly, Fortnightly, Monthly
-
Read our Mozo Review to learn more about the Smart Home Loan 80
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Promoted
UBank 2.49% p.a.
2.49% p.a.
$1234
Product details Close detailsUBank UHomeLoan - Discount Offer
Owner Occupier, Principal & Interest
2.49% p.a.
2.49% p.a.
Enjoy a super low rate, $0 fees and easy application with the Mozo Experts Choice Home Lender Bank of the Year.^ Free redraw with flexible repayments. Min 20% deposit.
UHomeLoan - Discount Offer
Enjoy a super low rate, $0 fees and easy application with the Mozo Experts Choice Home Lender Bank of the Year.^ Free redraw with flexible repayments. Min 20% deposit.
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2.49% p.a.
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2.49% p.a.
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$0
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$0.00
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$0.00
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yes - free
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yes - free
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no
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80.00%
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$0
-
$100,000
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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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Read our Mozo Review to learn more about the UHomeLoan - Discount Offer
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Promoted
HSBC 2.65% p.a.
2.66% p.a.
$1234
Product details Close detailsHSBC Discounted Home Value Loan
Owner Occupier, Principal & Interest
2.65% p.a.
2.66% p.a.
No ongoing fees. Free extra repayments and online redraw. Mozo Experts Choice Split Home Loan 2020^
Discounted Home Value Loan
No ongoing fees. Free extra repayments and online redraw. Mozo Experts Choice Split Home Loan 2020^
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2.65% p.a.
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2.66% p.a.
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$150
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$0.00
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$300.00
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yes - free
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yes - free
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no
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80.00%
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$150
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$50,000
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$7,500,000
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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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Read our Mozo Review to learn more about the Discounted Home Value Loan
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Promoted
ING2.59% p.a.
2.62% p.a.
$1234
Product details Close detailsINGMortgage Simplifier
LVR<80%, Owner Occupier, Principal & Interest
2.59% p.a.
2.62% p.a.
Enjoy no ongoing monthly or annual account-keeping fees. Unlimited additional repayments. Redraw facility available. If you choose to round up your Orange Everyday, every card purchase will help to directly reduce your outstanding home loan balance.
Mortgage Simplifier
Enjoy no ongoing monthly or annual account-keeping fees. Unlimited additional repayments. Redraw facility available. If you choose to round up your Orange Everyday, every card purchase will help to directly reduce your outstanding home loan balance.
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2.59% p.a.
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2.62% p.a.
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$299
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$0.00
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$250.00
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yes - free
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yes
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no
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80.00%
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$299
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$150,000
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$999,999
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Variable
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Principal & Interest
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Owner Occupier
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Fortnightly, Monthly
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Read our Mozo Review to learn more about the Mortgage Simplifier
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Promoted
Bank of Queensland2.69% p.a.
2.86% p.a.
$1234
Product details Close detailsBank of QueenslandEconomy Home Loan Discount Rate
Owner Occupier, Principal & Interest, <70% LVR
2.69% p.a.
2.86% p.a.
An ongoing low variable interest rate with free redraw, flexible repayment options and one free valuation. Discounted Economy variable rate available for owner occupier lending with max LVR of 70%.
Economy Home Loan Discount Rate
An ongoing low variable interest rate with free redraw, flexible repayment options and one free valuation. Discounted Economy variable rate available for owner occupier lending with max LVR of 70%.
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2.69% p.a.
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2.86% p.a.
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$450
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$10.00 monthly
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$320.00
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yes - free
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yes
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no
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70.00%
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$450
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$150,000
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-
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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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$2,500 cashback when you refinance your home loan to BOQ, min $250,000, 70% LVR or less. Apply before 15 August 2020, settle by 31 October 2020.
Read our Mozo Review to learn more about the Economy Home Loan Discount Rate
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Promoted
Qudos Bank 2.89% p.a.
2.89% p.a.
$1234
Product details Close detailsQudos Bank Low Cost Home Loan
Owner Occupier, Principal & Interest, LVR<80%
2.89% p.a.
2.89% p.a.
The Low Cost Home Loan Package features low variable rates from 2.89% (2.89% comparison rate*) for owner-occupiers making principle and interest repayments, and has no application, legal or settlement fees.
Low Cost Home Loan
The Low Cost Home Loan Package features low variable rates from 2.89% (2.89% comparison rate*) for owner-occupiers making principle and interest repayments, and has no application, legal or settlement fees.
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2.89% p.a.
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2.89% p.a.
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$0
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$0.00
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$275.00
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yes - free
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yes - free
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yes
-
80.00%
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$0
-
$150,000
-
-
-
Variable
-
Principal & Interest
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Owner Occupier
-
Monthly, Fortnightly, Weekly
-
Read our Mozo Review to learn more about the Low Cost Home Loan
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Promoted
Athena 2.59% p.a.
2.55% p.a.
$1234
Product details Close detailsAthena Variable Home Loan
<80% LVR, Owner Occupier, Principal & Interest
2.59% p.a.
2.55% p.a.
Fast online application with no fees. Free extra repayments and redraw facility. Min 20% deposit. Crowned Best New Home Loan for 2020 by the Mozo Experts.^
Variable Home Loan
Fast online application with no fees. Free extra repayments and redraw facility. Min 20% deposit. Crowned Best New Home Loan for 2020 by the Mozo Experts.^
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2.59% p.a.
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2.55% p.a.
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$0
-
$0.00
-
$0.00
-
yes - free
-
yes - free
-
no
-
80.00%
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$0
-
$100,000
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$2,000,000
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Variable
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Principal & Interest
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Owner Occupier
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Weekly, Fortnightly, Monthly
-
Read our Mozo Review to learn more about the Variable Home Loan
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Crunching the numbers
On a $300,000 home loan over 30 years, the difference between the cost of the average home loan rate and the lowest in the Mozo database is $59,276 - a considerable chunk of change for a household to save*.
“There’s potentially tens of thousands of dollars in savings up for grabs for those who take the time to shop around and find a great deal,” said Lamont.
Tips for choosing a bargain home loan rate
Check the comparison rate. One really handy tool when trying to decide what the best value loan for you is, is the comparison rate. This rate takes into account both the interest and guaranteed fees on a loan, to give you a more accurate idea of the ‘true’ cost of a loan and help you compare your options on even footing.
Decide what you really need. Many home loans come with a bunch of handy features like free extra repayments and offset accounts which can save you a tonne of money on interest. The downside is that full feature home loans often have more fees or higher interest rates attached. So it’s worth working out exactly what features you’ll use and look for a home loan to suit, so you’re not paying for extras you don’t use.
Compare your options. An easy way to compare a heap of home loans from a wide array of lenders is to use our home loan comparison table. Or, if you’re refinancing, take our Switch and Save calculator for a whirl to find out how much a better deal could save you.
*Based on a $300,000 loan over 30 years, 80% LVR, principal and interest repayments. Lowest rate in the Mozo database is 3.49% from Reduce Home Loans.
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