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


11 Jan 2020


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 latest Reserve Bank rates cuts, the new benchmark rate for home borrowers to pay attention to has dramatically shifted.

Two thirds of all lenders in the Mozo comparison database now offer a variable rate home loan below 3.20%, and with the lowest rates on offer now starting from just 2.69% (2.71% comparison rate*), 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 3.95% to the current best on the market could save a borrower with a $500,000 mortgage a whopping $4,168 a year over 30 years.* Sound attractive? Take a look at some of the top home loans under the magic 3.20% below, and see how much you could save.

Top Home Loans Under 3.20%

Promoted Smart Home Loan 80
  • 2.88% variable rate (2.90% comparison rate*)

  • $0 application or ongoing fees

  • Unlimited free extra repayments and redraw facility

Looking for a loan that could help you save thousands on your mortgage? Then look no further than the Smart 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 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.

Where do I get itHead over to to find out more >>


UBank UHomeLoan - Discount Offer
  • 2.84% variable rate (2.84% comparison rate*)

  • No hidden fees plus free extra repayments and redraw

  • Best Low Cost Home Loan and Split Home Loan Winner

The UBank UHomeLoan is a multiple award winner, and with such great value on offer it's not hard to see why. Being an online bank, UBank is able to offer super competitive rates and get rid of hidden costs such as application and ongoing fees. The super low rate is available for loans of $200,000 or more with a minimum deposit of 20%, and the online application process is fast and simple. You'll also have the security of knowing that UBank is backed by NAB.

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


Athena Variable Home Loan
  • 2.84% variable rate (2.80% 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 >>


Homestar Star Essentials Home Loan
  • 2.74% variable rate (2.77% p.a. comparison rate*)

  • No application or ongoing fees

  • Unlimited additional repayments with free online redraws

If saving thousands on your mortgage is your thing, then Homestar might just be your lender of choice. This popular Australian non-bank lender has been offering low-cost home loans since 2004, and the Star Essentials home loan is no exception. Boasting one of the lowest variable rates on the market plus no ongoing fees, this super sharp loan also comes neatly packaged with a number of great features including unrestricted extra repayments and free online redraws.

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


Bank of Queensland Discount Fixed Rate
  • 2.89% discounted fixed rate for 2 years (3.76% comparison rate*)

  • Make up to $5,000 in extra repayments annually without penalty

  • Borrow with as little as 5% deposit (owner occupiers)

If you’re looking to purchase a new home or investment property and want the certainty of repayment for a set length of time, then the BOQ fixed rate home loan is right up your alley. Don’t have a huge deposit? Don’t fret, because owner occupiers can borrow with as little as 5% deposit, and a 10% deposit if you’re after a loan for an investment. You’ll even have the freedom to make up to $5,000 in extra repayments annually to pay off your mortgage faster.

*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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