The new magic home loan number: Are you paying too much?


28 Jul 2021

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Mortgage repayments are the biggest household expense for many Australians, and also a prime target for big potential savings. Most borrowers know how important it is to have a competitive home loan, but how many of us really know what that means?

New research from the home loan comparison experts at Mozo reveals that 2.50% 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.

Switching from the average big 4 bank home loan rate of 3.53% to the best on the market could save a borrower with a $500,000 mortgage a whopping $4,896 a year over 30 years.^ Sound attractive? Take a look at some of the top home loans under the magic 2.50% below, and see how much you could save.

Top Home Loans Under 2.50% Smart Booster Home Loan
  • 1.85% discounted variable rate for 2 years

  • Rolls over to low ongoing 2.25% (2.21% comparison rate*)

  • Optional offset account plus free redraws and extra repayments

Looking for a loan that could help you save thousands on your mortgage? Then look no further than the Smart Booster Home Loan from With a killer ultra low rate, this competitive home loan from one of Australia's top non-bank lenders is packed with handy features like free extra repayments, unlimited free redraw and an optional offset account for 0.10%. There are no ongoing fees and its available to borrowers with a 20% deposit for loans of up to $1 million. 

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

Bank of Queensland Discount Fixed Rate
Bank of Queensland
  • 1.99% fixed rate for 2 years (3.07% comparison rate*)

  • Free extra repayments up to $5,000 each year

  • Bonus $3,000 cashback for refinancers - Apply by 29 August

BOQ is a favourite with borrowers looking to find value outside of the big four banks, and for good reason. The BOQ Discounted Fixed Home Loan lets you lock in a super low rate for two years while still having the flexibility to pay down your mortgage faster with free extra repayments of up to $5,000 a year. Plus, for a limited time refinancers can score a $3,000 cashback. Minimum loan size $250,000, 80% LVR or less.

Nano Variable Home Loan
  • 1.99% variable and comparison rate* (refinancers only)

  • Zero upfront or ongoing service fees

  • Free 100% offset sub account

Looking for a home loan that could save you thousands without having to sacrifice flexible features like an offset account and redraw facility? Look no further than this refinance home loan from competitive new digital lender Nano. This home loan ticks all the boxes, with an ultra low rate for refinancers with a 75% LVR plus unlimited additional repayments, free redraw, free 100% offset account, and a simple online application that makes it easy to apply.

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

86 400 Own Home Loan
86 400
  • 1.85% fixed rate for 3 years (2.59% comparison rate*)

  • $2,000 cashback bonus - Apply by 30 September

  • Free extra repayments up to $20,000 per fixed rate term

This cracking new 1.85% fixed rate (2.59% comparison rate*) from 86 400 is one of the lowest 3 year fixed rates on the market, and the $2,000 cashback offer seals the deal. What's more, borrowers can split their loan into fixed and variable portions and access multiple offset accounts on the variable portion. There's also the ability to make free extra repayments up to $20,000 during the fixed term and enjoy free redraw. Available to borrowers with 20% deposit.

Where do I get it? Head over to 86 400 to find out more >>

Athena Celebrate Variable Home Loan
  • 1.99% variable and comparison rate* for borrowers with 40% deposit

  • Zero Athena fees plus free extra repayments and redraw

  • Mozo Experts Choice Home Loan Innovation Winner 2021^

Online lender Athena is shaking up home loans with a customer first approach and some of the best value mortgages on the market. The Athena Home Loan has one of the lowest variable rates around and no application, valuation or ongoing fees. It also offers free extra repayments and redraw. Plus, to reward borrowers for paying down their home loan, Athena automatically lowers your rate as you pay off your loan. Available to refinancers with at least 60% equity.

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

HSBC Discounted Home Value Loan
  • New 2.19% variable rate (2.20% comparison rate*) for borrowers with 70% LVR

  • Enjoy free extra repayments, online redraw and no ongoing fees

  • $3,288 cashback for refinancers - For a limited time

HBSC is the first major bank in the Mozo comparison database to introduce a variable home loan rate this low for borrowers with 30% deposit or equity. The loan comes with all of the features you'd expect from a bank, including free extra repayments, a free online redraw facility, an optional split account and a dedicated relationship manager to guide you through the application process. And if you're refinancing $250,000 or more to HSBC, you can enjoy a generous $3,288 cashback for a limited time.

Where do I get it? Head over to HSBC to find out 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 the amount and term you entered.

**Initial monthly repayment figures are estimates only, based on the advertised rate, and a loan of $500,000 repaid over 25 years. 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 loans Awards

Want to compare more home loans? View the latest mortgage rates from over 80 lenders at Mozo's home loan comparison hub.

^ Savings calculated for an owner occupier P&I borrower with a $500,000 loan amount and an 80% LVR.

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