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

By Mozo Editorial · Friday, 8 November 2019 · 3 min read

Fact Checked

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 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 Lamont's 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%

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Important disclosures and comparison rate warning*

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Comparison rate warning

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.

How Initial Monthly Repayments figures are estimated

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.

UBank - UHomeLoan - Discount Offer

New 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

Find out more

The UBank UHomeLoan is a multiple award winner, and with amazing value on offer it's not hard to see why. As an online bank, UBank is able to offer super sharp rates and get rid of hidden costs like application and ongoing fees. You’ll need a minimum deposit of 20%, and get an online application process that is fast and super simple. You'll also have the security of knowing that UBank is backed by NAB.

loans.com.au - Smart Home Loan 80

New 2.88% variable rate (2.90% comparison rate*)
No application or ongoing fees
Unlimited extra repayments and free redraws

Find out more

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.

Homestar - Star Essentials Home Loan

2.74% p.a. variable rate (2.77% p.a. comparison rate*)
Free extra repayments and redraw facility
No monthly or ongoing account fees

Find out more

Boasting one of the lowest variable rates on the market, the Star Essentials Home Loan could help you save thousands over the life of your loan. This everything you need and nothing you don’t loan from Mozo Experts Choice winning non-bank lender, Homestar, gives owner occupiers plenty to get excited about, with $0 ongoing fees and a number of handy features such as unlimited extra repayments, free online redraws, multiple loan splits and a choice of weekly, fortnightly or monthly repayments.

Suncorp - Fixed Home Loan Special Offer

2.89% fixed rate for 3 years (3.70% comparison rate*)
Free extra repayments - up to $500 each month
$2,000 cashback bonus - limited time offer

Find out more

Winner of the 2019 Mozo Experts Choice Awards for best Fixed Rate Home Loan, the Home Package Plus mortgage from Suncorp is giving back to its borrowers with a fabulously low sub 3.00% interest rate with the security of a fixed rate for 3 years. Plus, you’ll even score a $2,000 cash bonus when you take out a loan of $250,000 or more (T&Cs apply). Together with no loan establishment fee and up to $500/month extra repayments, this is one home loan that must be seen to be believed!

Calculate your home loan repayments

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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.

^* 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

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