This simple mortgage trick saved one family $4,500 a year

Mozo

26 Aug 2019

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If you’re anything like the typical mortgage holder, it’s probably been a while since you compared home loans to see if your rate is still competitive. But as one Aussie family found, this mistake could be costing you thousands of dollars a year in higher interest charges, particularly now that challenger lenders are fighting it out with unbelievably low home loan rates.

The Lamont family from Sydney’s north thought their home loan was a good deal, having a switched a few years ago from a big bank to a cheaper lender. In reality, it had become seriously uncompetitive after a series of out of cycle rate hikes pushed their rate much higher than they realised they were paying. 

After comparing home loans on Mozo, the Lamonts refinanced with an online lender, hassle-free. This simple process saved them a massive $4,500 a year in interest and fees on their Sydney-sized mortgage.   

So if you haven’t reviewed your home loan lately, why not do it today. Who knows how much you could save by switching? Here are the Mozo Editors Picks of some of the top home loans on the market to get you started….


Low Rate Home Loans under 3.50%

Promoted

ANZ Simplicity PLUS Special Offer LVR <80%
  • Special 3.38% variable rate (3.42% comparison rate*)

  • Earn 300,000 bonus Qantas Points when you apply by 31 August

  • No upfront or monthly fees

Proving that big banks can deliver great value, this stellar loan deal from ANZ features a competitive variable rate and $0 upfront or monthly fees, plus a host of flexible features like free extra repayments, redraw facility, the option for repayment holidays and a split account. Last but not least, if you apply for a home loan over $300,000 by 31 August 2019, and settle by 31 January 2020 you could earn a massive 300,000 bonus Qantas Points!

Promoted

loans.com.au Smart Home Loan
  • 3.03% variable rate (3.05% comparison rate*)

  • No application or ongoing fees

  • Unlimited extra repayments and free redraws

The Smart Home Loan from popular online lender loans.com.au offers a super low rate plus handy features like free extra repayments, free redraw and the option to split your loan between fixed and variable rates. Its no wonder loans.com.au is a multiple Mozo Experts Choice Awards winner. If you’re borrowing $1 million or less and have at least a 20% deposit saved up, the Essentials Variable 80 might be the mortgage for you.

Promoted

Suncorp Back to Basics Special
  • 3.29% variable rate (3.30% comparison rate*)

  • No establishment or ongoing monthly service fees

  • $1,500 cashback for refinancers - apply by 30 September

With everything you need and nothing you don’t, the Suncorp Back to Basics Home Loan saves you on interest and fees as well. It features an attractive interest rate and unlimited extra repayments to pay off your mortgage faster, and there are no ongoing or establishment fees. What's more, refinancers borrowing at least $250,000 with a 20% deposit can score $1,500 cashback - just combine your new loan with a Suncorp Everyday Basics bank account.

Promoted

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

  • No application or ongoing fees

  • Unlimited additional repayments and free redraws

Athena is on a mission to save borrowers money on their mortgage, with a customer first commitment and some of the lowest rates around. The Athena Variable Home Loan is a competitive refinance mortgage with no application or ongoing fees, not to mention a loyalty bonus each year for 5 years just for making your repayments on time. Just keep in mind, this loan is only available right now for refinancers living in capital or major regional cities.

Promoted

ME Flexible Home Loan
  • 3.34% variable rate (3.78% comparison rate*)

  • No valuation fees, fixed or split loan fees or top up fees

  • Free 100% offset account

This low rate loan from ME Bank offers all of the flexible features you'd expect from a bank without the premium cost. You'll enjoy a discounted rate for the life of your loan, the ability to split your loan between variable and fixed rates, free redraw and a 100% offset account to help you save even more, for a small fee. ME doesn’t skimp on service; so if you need help with the loan process, you can arrange an appointment with an ME home loan specialists at a time and place that suits you.

*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? Check out the latest mortgage rates from 80+ lenders at Mozo's home loan comparison hub.


Rates correct at time of writing. How much you could save by refinancing your home loan depends on your personal circumstances.

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