Spring home loan war drives rates below 2 per cent

Mozo

09 Sep 2021

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Australia’s mortgage market is firing up for the Spring property season. Rival lenders are fighting hard for borrowers, releasing a wave of new home loans with jaw-dropping rates below 2 per cent.

BOQ has become the first major bank to offer a variable rate below 2%, with its new Economy Variable home loan rate of 1.98% p.a. (2.15% p.a. comparison rate*) for borrowers who meet LVR and debt to income ratio criteria.

Online lenders loans.com.au and Athena are winning over borrowers with their super sharp variable rates starting with a ‘1’, while new digital lender Nano is making waves with its 1.99% variable and comparison rate* for refinancers.

According to the Mozo database, a dozen other lenders now offer variable rates under 2 per cent, while on the fixed rate front UBank has just released an ultra-competitive 3 year deal in the ‘1’s.

“It seems the home loan rates war is simply unstoppable”, said Mozo Money Expert Kirsty Lamont.

“Given the potential savings of tens of thousands of dollars over the life of your loan and the opportunity to cut years off your mortgage, it really is a no brainer to shop around and see what’s on offer from rival lenders.”

TOP HOME LOANS WITH A '1' IN FRONT

Bank of Queensland Economy Variable Home Loan
Bank of Queensland
  • New 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.

loans.com.au Smart Booster Home Loan
loans.com.au
  • 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.

Nano Variable Home Loan
Nano
  • 1.99% variable and comparison rate* (refinancers only)

  • Zero upfront or ongoing service fees

  • Free 100% offset sub account

New digital lender Nano is winning over refinancers with an ultra low variable rate for borrowers with a 75% LVR plus unlimited additional repayments, free redraw and a free 100% offset account. There are no upfront or ongoing service fees to pay and Nano's simple online application makes it easy to apply and refinance in a matter of minutes, not weeks. What's more, if you refinance by 29 October you can enter the draw to win your home loan interest free.

UBank UHomeLoan
UBank
  • New 1.85% fixed rate for 3 years (2.24% comparison rate*)

  • Free extra repayments up to $20,000 during the fixed term

  • Zero upfront or ongoing fees

3 year fixed home loan rates don’t get any lower than this stellar new offer from UBank. Owner-occupier borrowers will be able to grab this rate on loans between $100,000 and $2,000,000 and have the upfront $395 rate lock fee waived, for a limited time. What's more, there are no other upfront or ongoing fees to worry about and UBank even lets customers make extra repayments towards the loan of up to $20k during the fixed term, for free!

Athena Celebrate Variable Home Loan
Athena
  • 1.99% variable and comparison rate*

  • Zero Athena fees plus free extra repayments and redraw

  • Minimum 60% LVR

The Athena Variable Home Loan is one of the best value home loans to hit the market for borrowers with at least 40% deposit or equity. This mortgage features a killer variable rate that stays great from start to finish and zero upfront or ongoing fees. On top of that, to reward borrowers for paying down their home loan, Athena will now automatically lower your rate as you pay down your loan. Available to home buyers and refinancers buying an established property in a capital or major regional city.

*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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