Unloan beats RBA to the punch and drops rates ahead of RBA announcement

By Jasmine Gearie · · 2 min read
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A young woman sitting in her lounge room with her phone and a cup of tea.

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.

More variable home loan options

  • Unloan Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    5.19 % p.a.
    Variable
    Comparison rate
    5.10 % p.a.
    Go to site
    • The first home loan with an automatic loyalty discount (conditions apply)
    • No application or banking fees
    • Built by CommBank

  • First Home Buyer Loan

    • Owner occupier
    • Principal & Interest
    • 5% min deposit
    • For first home buyers
    • Offset available
    • Redraw available
    Interest rate
    4.99 % p.a.
    Variable
    Comparison rate
    5.04 % p.a.
    Go to site
    • Competitive interest rate – 4.99% p.a. (comparison rate* 5.04% p.a.)
    • Offset account to reduce interest and save on repayments
    • No establishment or monthly fees, plus valuation fees waived up to $1,000 (limited time)

  • Discount Great Rate Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    • Cashback
    Interest rate
    5.19 % p.a.
    Variable
    Comparison rate
    5.20 % p.a.
    Go to site
    • Get up to $3,000 cashback when you apply online (T&Cs apply)
    • No paperwork or payslips required (see site for details)
    • Low variable rate

  • Special Budget Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    • Cashback
    Interest rate
    5.19 % p.a.
    Variable
    Comparison rate
    5.19 % p.a.
    No Partner link

  • Lite Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    5.19 % p.a.
    Variable
    Comparison rate
    5.21 % p.a.
    No Partner link

* 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.

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