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


04 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 >>

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 >>

Bank of Queensland Discount Fixed Rate
Bank of Queensland
  • 1.89% fixed rate for 2 years (3.05% 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 four 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.

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 >>

Macquarie Basic Home Loan
  • Rates starting from just 2.29% variable and comparison rate* (minimum 40% deposit)

  • No application or account management fees

  • Mozo Experts Choice 2021 Winner

Macquarie is now Australia’s 5th largest home lender, and with offerings like this it’s not hard to see why. The Macquarie Basic Home Loan now has even lower variable rates, plus zero upfront or ongoing fees and a range of flexible features such as free extra repayments, a free redraw facility and a split account option. To start the simple application process, simply request a call on the Macquarie website. Available for loans of up to $5 million.

Where do I get it? Head over to Macquarie 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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