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

Mozo

25 Jun 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

loans.com.au Smart Home Loan
  • 3.28% variable rate (3.30% comparison rate*)

  • No application or ongoing fees

  • Unlimited extra repayments and free redraws.

The new 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

UBank UHomeLoan
  • 2.99% fixed rate for 1 year (4.09% comparison rate*)

  • No ongoing fees

  • Fast and easy online application

A hot new contender in the fixed home loan market from UBank, this mortgage is a front-runner for borrowers wanting the security of a fixed loan. With a crazy-low sub-3.00% rate, no ongoing fees and the ability to make free extra repayments up to $20,000 a year, it's no wonder this loan is turning heads.

Promoted

Athena Variable Home Loan
  • 3.34% variable rate (3.30% comparison rate*)

  • No application or ongoing fees

  • Unlimited additional repayments and free redraws

The Athena Variable Home Loan is a competitive refinance mortgage with a great value variable rate and no application or ongoing fees. But that’s not all, the loan also offers free extra repayments and a free redraw facility for added flexibility. Just keep in mind, this loan is only available right now for refinancers living in capital or major regional cities.

Promoted

Bank of Queensland Discount Fixed Rate
  • 3.39% fixed rate for 3 years (4.41% comparison rate*)

  • $1,000 cashback for first home buyers

  • Apply by June 30 to qualify

Proving that banks can offer competitive value, BOQ has come out with a ripper loan here that lets borrowers lock in a sub 3.50% rate for 3 years. Owner occupiers can borrow with as little as 5% deposit and make free additional repayments up to $5,000 per year. What's more, there's $1,000 cashback on offer to first home buyers who apply before June 30. Get in quick!

Promoted

Suncorp Back to Basics Special
  • 3.49% variable rate (3.50% comparison rate*)

  • No ongoing monthly service fees

  • Unlimited free extra repayments

With everything you need and nothing you don’t, the Suncorp Back to Basics Home Loan is a fabulous front-runner for unbeatable value all-round. It features an attractive interest rate and unlimited extra repayments to pay off your mortgage faster. Complete with no ongoing service fees, this is definitely one to watch.

*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? 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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