Unloan beats RBA to the punch and drops rates ahead of RBA announcement
Unloan is getting ahead of the Reserve Bank’s interest rate decision next week by cutting its rates early – though the cut is a relatively small one.
The online-only lender dropped its variable rates by 0.05% p.a., and while the change is modest, it means Unloan now has one of the lowest variable home loan rates in the Mozo database.
Unloan’s new variable rates
| Loan type | New interest rate (p.a.) | Comparison rate (p.a.) | Rate cut |
|---|---|---|---|
| Owner occupied (up to 80% LVR) | 5.19% | 5.10% | 0.05% |
| Owner occupied (up to 90% LVR) | 5.49% | 5.40% | 0.05% |
| Investor (up to 80% LVR) | 5.39% | 5.30% | 0.05% |
| Investor (up to 90% LVR) | 5.69% | 5.60% | 0.05% |
| Source: Mozo database as at 28 October, 2025. Rates are for owner occupiers or investors, making principal and interest repayments over 25 years on a $500,000 home loan. | |||
Unloan’s 5 basis point cut applies to both owner occupier and investment loans, but there’s a catch – the lender says this rate reduction only applies to new customers.
This is a deviation from what the lender has done in the past year when the Reserve Bank of Australia (RBA) cut the cash rate, which was to pass it on to all borrowers, new and existing customers.
How much can 5 basis points save me, really?
Using our home loan rate comparison calculator, we found that the 5 basis point cut is $14 off the previous rate, which could save you up to $4,417 over the life of the loan †.
While the difference between Unloan’s old and new rate isn’t staggering, it’s a highly competitive rate in the market more broadly.
Following the change, it’s now among the top seven leading variable rates in the Mozo database for owner occupiers. Note that in the list of the best home loan rates below, some are only available to first home buyers.
† Using Unloan’s rates for owner occupiers with <80% LVR, making principal and interest repayments on a $500,000 loan over 25 years.
Top variable rates
- 4.99% p.a. (5.04% p.a. comparison rate*) | G&C Mutual Bank First Home Buyer Loan (conditions apply)
- 4.99% p.a. (5.04% p.a. comparison rate*) | Unity Bank First Home Buyer Loan (conditions apply)
- 5.14% p.a. (5.14% p.a. comparison rate*) | HomeLoans360 Owner Variable Home Loan
- 5.14% p.a. (5.14% p.a. comparison rate*) | Pacific Mortgage Group Standard Variable Home Loan
- 5.18% p.a. (5.38% p.a. comparison rate*) | Bank of China Discount Home Loan
- 5.18% p.a. (5.57% p.a. comparison rate*) | Bank of China Discount Plus Home Loan
- 5.19% p.a. (5.10% p.a. comparison rate*) | Unloan Variable Home Loan
Source: Mozo database on 28 October, 2025. Best home loan interest rates for owner occupiers with a 20% deposit (80% LVR), making principal and interest repayments on a $500,000 loan over 25 years.