Borrower bonanza as rival lenders cut rates... again


12 Dec 2021

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Just when we were getting used to home loan rates that start with a '2', Australia's rival lenders are releasing some jaw-dropping new variable home loan rates with a '1' in front, giving savvy borrowers a new opportunity to compare and potentially save thousands on their home loan.

HSBC has just chopped its Discounted Home Value variable home loan to a jaw dropping 1.97% (1.98% comparison rate*) for borrowers with 30% deposit or equity, joining Bank of Queensland in the ranks of the major banks now offering variable rates starting with a '1'.

Online lenders Tic:Toc, Athena and are also snapping up bargain-hunting borrowers with variable home loan rate offers under 2 per cent, while UBank has just released a limited-time only 1.99% variable home loan (1.99% comparison rate*) for borrowers who apply before 31 January 2022.

So, if you'd like to take advantage of the latest rate cuts to snap up a killer new home loan deal, read on for the Mozo Editor’s rundown of these stellar new offers.


UBank UHomeLoan - Discount Offer
  • 1.99% p.a. variable and comparison rate* special offer - Limited time only

  • $0 upfront or ongoing fees plus free extra repayments and redraw

  • 2021 Mozo Experts Choice Award winner^

Variable home loan rates don’t get much lower than this stellar new offer from UBank. Owner-occupier borrowers will be able to grab this rate on loans of $200,000 plus with a minimum deposit of 20% or more. What's more, there are no upfront or ongoing fees to worry about and UBank offers free extra repayments and redraw. The online application process is fast and easy with local help on tap from UBank's home loan experts. Apply by 31 January 2022.

HSBC Discounted Home Value Loan
  • New 1.97% variable rate (1.98% comparison rate*) for borrowers with 70% LVR

  • Enjoy free extra repayments, online redraw and no ongoing fees

  • $3,288 cashback for refinancers - limited time only

HBSC is the first major bank in the Mozo comparison database to introduce a variable home loan rate this low for borrowers with 30% deposit or equity. The loan comes with all of the features you'd expect from a bank, including free extra repayments, a free online redraw facility, an optional split account and a dedicated relationship manager to guide you through the application process. And if you're refinancing $250,000 or more to HSBC, you can enjoy a generous $3,288 cashback.

Tic:Toc Variable Home Loan
  • 1.89% variable rate (1.90% comparison rate*)

  • No upfront or ongoing fees

  • Best Low Cost Home Loan 2021 - Mozo Experts Choice Awards^

This value-packed home loan from Mozo Experts Choice Online Lender of the Year,^ Tic:Toc, boasts one of the lowest variable rates on the market and has no upfront or ongoing fees. Borrowers can add on an optional offset account for $10 a month to help save on interest, and pay the mortgage off faster with free additional repayments. Available for loans of up to $2 million, minimum 10% deposit.

Bank of Queensland Economy Variable Home Loan
Bank of Queensland
  • Variable rates from just 1.98% p.a. (2.15% p.a. comparison rate*)

  • Bonus $3,000 cashback for refinancers - limited time only

  • Available to borrowers with 70% LVR

BOQ is a favourite with borrowers looking to find value outside of the big four banks, and for good reason. This jaw-dropping new sub 2.00% variable home loan is available to borrowers who have an LVR of 70% or less and who meet BOQ's debt to income ratio criteria. Loan features include free extra repayments and free redraws for a $10 monthly service fee, plus refinancers can score a bonus $3,000 cashback for a limited only. Minimum loan size $250,000. Smart Booster Home Loan
  • 1.85% discount variable rate for 2 years

  • Rolls over to low ongoing 2.25% (2.21% comparison rate*)

  • No monthly fees plus unlimited free redraws and extra repayments

This low rate, low fee home loan could help you save thousands on your mortgage and is packed with useful features like unlimited free extra repayments and redraw, multiple loan split options and an optional offset account for 0.10%. With all this on offer the Smart Booster Home Loan really is a smart choice for borrowers who are looking to save money on interest and get mortgage free faster. You can borrow up to $1 million with this loan with a 20% deposit, and pay no ongoing monthly fees.

*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.

^See information about the Mozo Experts Choice Home loans Awards

Want to compare more home loans? View the latest mortgage rates from over 80 lenders at Mozo's home loan comparison hub.

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