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

Mortgage repayments are the biggest household expense for many Australians, and also a prime target for big potential savings, especially now that interest rates are on rise.

Most borrowers know how important it is to have a competitive home loan to avoid overpaying in interest and fees, but how many of us really know what that means?

New research from the home loan comparison experts at Mozo reveals that 3.74% is the new benchmark for variable home loan rates, so if your rate is higher than this, you are almost certainly paying far 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.

For instance the average big 4 bank home loan rate is now a whopping 4.70%, which means that a borrower with a $400,000 home loan could save up to $5,597 a year by switching.^ Sound attractive? Take a look at some of the top home loans under the magic 3.74% below, and see how much you could save.

Top Low Rate Home Loans: July 2022 - Smart Booster Home Loan
  • 3.10% discount variable rate for 2 years (3.46% comparison rate*)
  • Free redraws and extra repayments
  • Optional offset account
Find out more

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 super 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 >>

Unloan - Variable Home Loan
  • 2.64% variable rate (2.56% comparison rate*)
  • Zero upfront or ongoing fees
  • Refinancers only

Unloan is a stellar new digital home loan built by CommBank, offering owner-occupiers a low 2.64% variable rate (2.56% comparison rate*) along with a loyalty discount that shaves 1 basis point off your interest every year for up to 30 years. Loan features include free extra repayments and redraw, and there are no pesky fees to pay. Available for refinance loans of up to $3M. Minimum 80% LVR.

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

Macquarie - Basic Home Loan
  • Rates from 3.19% variable and comparison rate* - minimum 40% deposit
  • Zero application or ongoing fees
  • Free redraw and extra repayments

Macquarie is now Australia’s 5th largest home lender, and with offerings like this it’s not hard to see why. This low rate home loan is light on fees but loaded with features, including fee-free redraw using online banking, flexible ways to repay and the flexibility to split your loan and set different repayment types. Plus, you can apply online in as little as 15 minutes.

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

UBank - Neat Home Loan
  • Variable rates from 3.14% (3.16% comparison rate*) - min 40% deposit
  • Free extra repayments and redraw facility
  • Fast and paperless online application process
Find out more

UBank ticks all the boxes with this low rate, low fee digital home loan for borrowers looking to keep their costs to a minimum. The Neat Home Loan rewards borrowers with lower loan-to-value-ratios (LVRs) with its most competitive rates, while also being light on fees. There's a $250 settlement fee but no application fees or ongoing fees. Features include free extra repayments and redraw, and repayments can be made weekly, fortnightly or monthly.

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

Yard - Variable Home Loan
  • 2.84% variable rate (2.88% comparison rate*)
  • Free extra repayments and redraw + optional offset account
  • Available to borrowers with 40% deposit or equity
Find out more

This value-packed home loan from online lender Yard boasts one of the lowest variable rates on the market for borrowers with 40% deposit and has no ongoing fees. Borrowers can add on an optional offset account for $10 a month to help save on interest, and pay off the mortgage faster with free additional repayments. Available to borrowers with minimum 60% LVR, for loans of up to $1 million.

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

Calculate your home loan repayments

We can show you the monthly repayment amount for a range of loans

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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 switching to the current lowest rate in the Mozo database of 2.54%.

* 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.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. 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 Loan Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.