The new magic home loan number


12 Jun 2019


Before the Reserve Bank cut rates this month, conventional wisdom held 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 RBA announcement, the new benchmark rate for home borrowers to pay attention to has dramatically shifted.

20 lenders in the Mozo comparison database now offer variable rates below 3.50%, and that number is guaranteed to grow as more lenders announce cuts. With the lowest variable deals now starting from just 3.19%, 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 4.33% to the current best on the market could save the average borrower a whopping $3,108 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
  • 3.28% variable rate (3.30% 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 hot 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
  • 3.39% discounted fixed rate (4.41% comparison rate*)

  • $1,000 cashback for first home buyers (apply by 30 June 2019)

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

Did you know that apart from a great low rate you could also score $1,000 cashback in your pocket with the BOQ fixed rate home loan if you apply by June 30? On top of that you’ll get the security of repayment for a set length of time. 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.


Homestar Star Essentials Home Loan
  • 3.24% p.a. variable rate (3.25% p.a. comparison rate*)

  • Free extra repayments and redraw facility

  • No monthly or ongoing account fees

As one of Australia’s  oldest non-bank lenders, Homestar has been providing affordable home loans since 2004 and the Star Essentials Home Loan is no different. With a number of handy features - including unrestricted extra repayments and  free online redraws - plus an ultra low variable rate of 3.24%, this mortgage gives owner occupiers one of the lowest rates in the market.


Tic:Toc Variable Home Loan
  • 3.47% variable rate (3.48% comparison rate*)

  • $1000 cashback offer

  • 2019 Mozo Experts Choice Online Home Lender of the Year

With a handy low variable rate of 3.47% for owner occupiers and a mortgage approval process that only takes 22 minutes, the Variable Home Loan from Tic:Toc is a definite stand-out in the online lending space. Having won the 2019 Mozo Experts Choice Online Home Lender of the Year, this mortgage features a handy offset account available on an opt-in basis, free redraw facility and flexible repayments, and on top of this, when new borrowers take out a Tic:Toc home loan they’ll get their hands on a $1,000 cash back offer too.


Reduce Home Loans Rate Slasher Home Loan
  • 3.19% variable rate (3.23% comparison rate*)

  • No upfront or ongoing fees

  • Complete with offset account

Looking for a rock-bottom home loan that will save you a fortune? The Reduce Home Loans Rate Slasher is among some of the best value home loans on our database with it's super low 3.19% rate. But, there’s more! It not only features a competitive low mortgage rate, it also has a handy offset account, redraw facility and many more features.

*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 $150,000 over 25 years.

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 $400,000 loan amount and an 80% LVR.

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