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
- loans.com.au
3.64% p.a.
3.66% p.a.
$1234
Product details Close detailsloans.com.au Essentials Variable 80
Owner Occupier, Principal & Interest
3.64% p.a.
3.66% p.a.
A low-rate home loan that could save you thousands. No monthly or ongoing fees. Unlimited additional repayments. Unlimited free redraws with no minimum redraw amount. Winner of two Mozo Experts Choice Awards 2018 - Investor Home Loan & Low Cost Home Loan.^
Essentials Variable 80
A low-rate home loan that could save you thousands. No monthly or ongoing fees. Unlimited additional repayments. Unlimited free redraws with no minimum redraw amount. Winner of two Mozo Experts Choice Awards 2018 - Investor Home Loan & Low Cost Home Loan.^
-
3.64% p.a.
-
3.66% p.a.
-
$520
-
$0.00
-
$0.00
-
yes - free
-
yes - free
-
no
-
80.00%
-
$50,000
-
$2,000,000
-
Variable
-
Principal & Interest
-
Owner Occupier
-
Weekly, Fortnightly, Monthly
Read our Mozo Review to learn more about the Essentials Variable 80
-
- HSBC
3.59% p.a.
3.61% p.a.
$1234
Product details Close detailsHSBCDiscounted Home Value Loan
Owner Occupier, Principal & Interest
3.59% p.a.
3.61% p.a.
Discounted rate for the life of the loan. A relationship manager to help you through the application process.
Discounted Home Value Loan
Discounted rate for the life of the loan. A relationship manager to help you through the application process.
-
3.59% p.a.
-
3.61% p.a.
-
$150
-
$0.00
-
$300.00
-
yes - free
-
yes - free online
-
no
-
90.00%
-
$50,000
-
$7,500,000
-
Variable
-
Principal & Interest
-
Owner Occupier
-
Weekly, Fortnightly, Monthly
Read our Mozo Review to learn more about the Discounted Home Value Loan
-
- UBank
3.59% p.a.
3.59% p.a.
$1234
Product details Close detailsUBankUHomeLoan - Discount Offer
Owner Occupier, Principal & Interest
3.59% p.a.
3.59% p.a.
A low rate Home Loan with no bank fees on variable rate loans. Easy & fast to apply. Choose between flexible repayments and make extra repayments for free on a variable rate home loan.
UHomeLoan - Discount Offer
A low rate Home Loan with no bank fees on variable rate loans. Easy & fast to apply. Choose between flexible repayments and make extra repayments for free on a variable rate home loan.
-
3.59% p.a.
-
3.59% p.a.
-
$0
-
$0.00
-
$0.00
-
yes - free
-
yes
-
no
-
80.00%
-
$200,000
-
$699,999
-
Variable
-
Principal & Interest
-
Owner Occupier
-
Weekly, Fortnightly, Monthly
Read our Mozo Review to learn more about the UHomeLoan - Discount Offer
-
- Newcastle Permanent
3.99% p.a.
4.38% p.a.
$1234
Product details Close detailsNewcastle Permanent Discounted Variable Home Loan Premium Plus Package
Owner Occupier, Principal & Interest
3.99% p.a.
4.38% p.a.
Experts Choice - Australia's Best Customer-Owned Banking & Home Lender of the Year 2018.^
Discounted Variable Home Loan Premium Plus Package
Experts Choice - Australia's Best Customer-Owned Banking & Home Lender of the Year 2018.^
-
3.99% p.a.
-
4.38% p.a.
-
$0
-
$395.00 yearly
-
$0.00
-
yes - free
-
yes - free
-
yes
-
95.00%
-
$150,000
-
-
-
Variable
-
Principal & Interest
-
Owner Occupier
-
Weekly, Fortnightly, Monthly
Read our Mozo Review to learn more about the Discounted Variable Home Loan Premium Plus Package
-
- ME
3.97% p.a.
3.99% p.a.
$1234
Product details Close detailsMEBasic Home Loan
Owner Occupier, LVR<80%, Principal and Interest
3.97% p.a.
3.99% p.a.
No fees to redraw & low variable rate. Meet a mobile banker at a time or place that suits you.
Basic Home Loan
No fees to redraw & low variable rate. Meet a mobile banker at a time or place that suits you.
-
3.97% p.a.
-
3.99% p.a.
-
$400
-
$0.00
-
$350.00
-
yes - free
-
yes - free
-
no
-
80.00%
-
$40,000
-
-
-
Variable
-
Principal & Interest
-
Owner Occupier
-
Weekly, Fortnightly, Monthly
Read our Mozo Review to learn more about the Basic Home Loan
-
- Hunter United
4.19% p.a.
4.19% p.a.
$1234
Product details Close detailsHunter UnitedInterest Only Owner Occupier Home Loan
4.19% p.a.
4.19% p.a.
Interest Only could offer the relief you need. Get fast approval on a 2-year interest only owner occupied home loan of $300,000 or more.
Interest Only Owner Occupier Home Loan
Interest Only could offer the relief you need. Get fast approval on a 2-year interest only owner occupied home loan of $300,000 or more.
-
4.19% p.a.
-
4.19% p.a.
-
$0
-
$0.00
-
$80.00
-
yes
-
yes - 1st redraw per month free
-
no
-
80.00%
-
$300,000
-
-
-
Variable
-
Interest Only
-
Owner Occupier
-
Weekly, Fortnightly, Monthly
Read our Mozo Review to learn more about the Interest Only Owner Occupier Home Loan
-
- Virgin Money
3.69% p.a.
3.83% p.a.
$1234
Product details Close detailsVirgin MoneyReward Me Variable Rate Home Loan
Owner Occupier, Principal & Interest, LVR<80%
3.69% p.a.
3.83% p.a.
Competitive rates from 3.69% p.a. Plus receive 20,000 Velocity Points for every $100,000 drawn at settlement.
Reward Me Variable Rate Home Loan
Competitive rates from 3.69% p.a. Plus receive 20,000 Velocity Points for every $100,000 drawn at settlement.
-
3.69% p.a.
-
3.83% p.a.
-
$150
-
$10.00 monthly
-
$320.00
-
yes - free
-
yes - free
-
yes
-
80.00%
-
$750,000
-
-
-
Variable
-
Principal & Interest
-
Owner Occupier
-
Weekly, Fortnightly, Monthly
Read our Mozo Review to learn more about the Reward Me Variable Rate Home Loan
-
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.
Mozo may receive advertising fees from the financial institutions, issuers of financial or credit products and third party advice providers that are shown on this page. These fees are based on a cost per click, cost per acquisition, or a fixed fee.
