The new golden home loan number all borrowers need to know


17 Sep 2019


Conventional wisdom used to hold that if you were paying anything more than 4.00% on your home loan, you were being... ahem... ripped off. With lenders dropping home loan rates to new record lows in the wake of the recent Reserve Bank rates cuts, the new benchmark rate for home borrowers to pay attention to has dramatically shifted.

Two thirds of lenders in the Mozo comparison database now offer variable rates below 3.50%, and with the lowest rates on offer now starting from just 2.89%, there are some huge savings on offer for the typical home borrower.

In fact, switching from the new average big 4 bank home loan rate of 4.13% to the current best on the market could save a borrower with a $500,000 mortgage a whopping $4,164 a year.* Sound attractive? Take a look at some of the top home loans under the magic 3.50% below, and see how much you could save.

Top Home Loans Under 3.50%

Promoted Smart Home Loan
  • 3.03% variable rate (3.05% comparison rate*)

  • $0 application or ongoing fees

  • Unlimited free extra repayments and redraw facility

Looking for a loan with more bang for your buck? Then look no further than the Smart Home Loan from With a killer new ultra low rate, this competitive mortgage is packed with handy features like free extra repayments, unlimited free redraw and a split rate option. A huge contender in the low interest rate mortgage arena, this loan has all the perks you need and nothing you don’t.


Bank of Queensland Discount Fixed Rate
  • 2.99% discounted fixed rate for 3 years (4.09% comparison rate*)

  • Free additional repayments up to $5,000 a year

  • Borrow up to 80% of property value

This ripper home loan from Bank of Queensland lets you lock in a sub 3.00% rate for 3 years, giving you peace of mind over your repayments as well as the ability to get ahead on your home loan by making free additional repayments up to $5,000 a year. Just be aware that you won’t be able to draw down on any additional repayments as the loan doesn’t have a redraw facility. This loan is available for borrowings of $300,000 or more, with a minimum 20% deposit.


Suncorp Back to Basics Special
  • 3.18% variable rate (3.19% comparison rate*)

  • No annual or ongoing monthly service fees

  • $1500 cashback offer for refinancers

The Suncorp Back to Basics Home Loan offers exceptional value all-round. It features all the basics you want and nothing you don’t, and with a new, great low interest rate and unlimited extra repayments, you could pay off your mortgage sooner. What's more, if you're refinancing an existing home loan of $250,000 or more and combine it with a Suncorp Everyday Basics Bank Account, you'll be eligible for a $1,500 rebate! Apply by 30 September 2019.


Athena Variable Home Loan
  • 3.09% variable rate (3.05% comparison rate*)

  • Free extra repayments and redraw facility

  • No upfront or ongoing fees

Athena aims to shake up mortgages in Australia and its new Variable Home Loan is a bona fide bank beater. The value-packed refinance mortgage features a super low variable rate and no application, valuation or ongoing fees. But the great features don’t end there, the loan also offers free extra repayments and a free redraw facility. Just keep in mind, if you’re a first home buyer, you won’t be able to get this loan as it’s only for refinancers, living in capital or major regional cities.

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


HSBC Discounted Home Value Loan
  • 3.17% variable rate (3.19% comparison rate*)

  • No upfront or ongoing fees

  • Borrow with as little as 10% deposit

A dual winner in the Mozo Experts Choice Awards for Low Cost Home Loan and First Home Buyer Loan, it’s little wonder this home loan from HSBC is turning heads. Not only will you score a low-interest rate that's discounted for the life of the loan, you'll also pay no application or service fees when you apply by 30 November. Stand-out features include; free extra repayments, a redraw facility and the option to split your loan between fixed and variable rates. Plus, you'll get a dedicated relationship manager to help you with the application process.

*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.

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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