Why home loan rates are going up
02 Jul 2018
Lenders start hiking home loan rates, big banks predicted to follow
Switching to the lowest home loan rate could save hundreds each month
The Reserve Bank is expected to keep the cash rate on hold again today, but mortgage lenders are bumping up rates for Aussie borrowers anyway and the big banks are expected to follow.
The rate rises reflect the rising cost of funding for Aussie banks, with smaller lenders such as ING, Bank of Queensland and ME among the first to cave in and pass costs along to customers.
“Borrowers need to prepare for more rate rises in coming months, with the nation's big banks unlikely to be able to absorb increased overseas funding costs for much longer,” says Mozo Director Kirsty Lamont.
“One of the best ways to avoid rate hike pain is to refinance to a cheaper home loan now. Switching from the average home loan rate to the lowest rate in Mozo’s database could mean a yearly saving of $2,100. And having those extra funds available could make a huge difference to your budget,” says Lamont^.
Get started by comparing low rate home loans in the table below.
Low Rate Home Loans - July 2018
Rates updated daily. Advertiser disclosure.
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Mozo experts choice awards won:
- Offset Home Loan - 2021
- Low Cost Home Loan - 2021
1.85% p.a.variable for 24 months and then 2.25% p.a. variable
2.21% p.a.
$1234
Product details Close details
Mozo experts choice awards won:
- Offset Home Loan - 2021
- Low Cost Home Loan - 2021
Smart Booster Home Loan
2 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR
1.85% p.a.variable for 24 months and then 2.25% p.a. variable
2.21% p.a.
New super low introductory rate home loan for two years. Min 20% deposit. No monthly or ongoing fees. Fast settlement times. Mozo award-winning online lender. Friendly, local Australian based team.
Smart Booster Home Loan
New super low introductory rate home loan for two years. Min 20% deposit. No monthly or ongoing fees. Fast settlement times. Mozo award-winning online lender. Friendly, local Australian based team.
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1.85% p.a.variable for 24 months and then 2.25% p.a. variable
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2.21% p.a.
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$520
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$0.00
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$0.00
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yes - free
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yes - free
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Optional - with 0.10% additional interest
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$520
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80.00%
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$50,000
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$1,000,000
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Variable
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Principal & Interest
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Owner Occupier
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Weekly, Fortnightly, Monthly
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Read our Mozo Review to learn more about the Smart Booster Home Loan
Details Close
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Mozo experts choice awards won:
- Split Home Loan - 2021
- Low Cost Home Loan - 2021
2.19% p.a. variable
2.19% p.a.
$1234
Product details Close details Mozo experts choice awards won:
- Split Home Loan - 2021
- Low Cost Home Loan - 2021
UHomeLoan - Discount Offer
Owner Occupier, Principal & Interest
2.19% p.a. variable
2.19% p.a.
Enjoy a super low rate. $0 fees to consider. Fast and easy online application. Free redraw and free extra repayments. Flexible payment terms. Min 20% deposit required.
UHomeLoan - Discount Offer
Enjoy a super low rate. $0 fees to consider. Fast and easy online application. Free redraw and free extra repayments. Flexible payment terms. Min 20% deposit required.
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2.19% p.a. variable
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2.19% p.a.
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$0
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$0.00
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$0.00
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yes - free
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yes - free
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no
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$0
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80.00%
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$100,000
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-
-
Variable
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Principal & Interest
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Owner Occupier
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Weekly, Fortnightly, Monthly
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Read our Mozo Review to learn more about the UHomeLoan - Discount Offer
Details Close
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Mozo experts choice awards won:
- Home Loan Innovation - 2021
- Investor Home Loan - 2021
- Low Cost Home Loan - 2021
1.99% p.a. variable
1.99% p.a.
$1234
Product details Close details Mozo experts choice awards won:
- Home Loan Innovation - 2021
- Investor Home Loan - 2021
- Low Cost Home Loan - 2021
Celebrate Variable Home Loan
<60% LVR, Owner Occupier, Principal & Interest
1.99% p.a. variable
1.99% p.a.
Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required. Winner of three Mozo Expert's Choice Awards for 2021.
Celebrate Variable Home Loan
Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required. Winner of three Mozo Expert's Choice Awards for 2021.
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1.99% p.a. variable
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1.99% p.a.
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$0
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$0.00
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$0.00
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yes - free
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yes - free
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no
-
$0
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60.00%
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$100,000
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$2,000,000
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Variable
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Principal & Interest
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Owner Occupier
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Weekly, Fortnightly, Monthly
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Read our Mozo Review to learn more about the Celebrate Variable Home Loan
Details Close
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1.99% p.a. variable
1.99% p.a.
$1234
Product details Close detailsVariable Home Loan
Owner Occupier, Principal & Interest
1.99% p.a. variable
1.99% p.a.
Refinance only. Super-fast digital application process. Zero upfront fees. No on-going service fees. Free 100% offset sub account. Minimum 25% deposit required.
Variable Home Loan
Refinance only. Super-fast digital application process. Zero upfront fees. No on-going service fees. Free 100% offset sub account. Minimum 25% deposit required.
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1.99% p.a. variable
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1.99% p.a.
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$0
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$0.00
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$0.00
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yes - free
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yes - free
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yes - offset sub account
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$0
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75.00%
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$100,000
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$2,500,000
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Variable
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Principal & Interest
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Owner Occupier
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Monthly
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Read our Mozo Review to learn more about the Variable Home Loan
Details Close
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2.14% p.a. variable
2.14% p.a.
$1234
Product details Close detailsBasic Home Loan
Owner Occupier, LVR<60%, Principal & Interest
2.14% p.a. variable
2.14% p.a.
Competitive low variable rate. No application or account management fees. Flexibility to split your loan and set different repayment types. Fee free withdrawals of your savings.
Basic Home Loan
Competitive low variable rate. No application or account management fees. Flexibility to split your loan and set different repayment types. Fee free withdrawals of your savings.
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2.14% p.a. variable
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2.14% p.a.
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$0
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$0.00
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$400.00
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yes - free
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yes - free
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no
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$0
-
60.00%
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$150,000
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$5,000,000
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Variable
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Principal & Interest
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Owner Occupier
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Monthly
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Read our Mozo Review to learn more about the Basic Home Loan
Details Close
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Mozo experts choice awards won:
- Low Cost Home Loan - 2021
1.99% p.a. variable
2.02% p.a.
$1234
Product details Close details Mozo experts choice awards won:
- Low Cost Home Loan - 2021
Variable Home Loan Special
Owner Occupier, Principal & Interest, LVR <80%
1.99% p.a. variable
2.02% p.a.
Yard’s low-rate variable special home loan is packed with all features – unlimited additional repayments, free redraw, 100% offset account. Enjoy a simple online application. Special rate applies to home loan applications submitted by 31st January 2022. Low Cost Home Loan winner in the Mozo's Experts Choice award 2021.
Variable Home Loan Special
Yard’s low-rate variable special home loan is packed with all features – unlimited additional repayments, free redraw, 100% offset account. Enjoy a simple online application. Special rate applies to home loan applications submitted by 31st January 2022. Low Cost Home Loan winner in the Mozo's Experts Choice award 2021.
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1.99% p.a. variable
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2.02% p.a.
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$530
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$0.00
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$500.00
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yes - free
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yes - free
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Optional - $10 per month
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$530
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80.00%
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$150,000
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$5,000,000
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Variable
-
Principal & Interest
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Owner Occupier
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Weekly, Fortnightly, Monthly
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Special rate applies to home loan applications submitted by 31 January 2022.
Read our Mozo Review to learn more about the Variable Home Loan Special
Details Close
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1.97% p.a. variable
1.98% p.a.
$1234
Product details Close detailsDiscounted Home Value Loan
Owner Occupier, Principal & Interest, LVR <70%
1.97% p.a. variable
1.98% p.a.
Enjoy competitive rates for owner occupiers. Enjoy unlimited free extra repayments. Flexibility to redraw additional payments for free. No ongoing monthly service fee. Plus, $3,288 cashback offer (conditions apply).
Discounted Home Value Loan
Enjoy competitive rates for owner occupiers. Enjoy unlimited free extra repayments. Flexibility to redraw additional payments for free. No ongoing monthly service fee. Plus, $3,288 cashback offer (conditions apply).
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1.97% p.a. variable
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1.98% p.a.
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$0
-
$0.00
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$300.00
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yes - free
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yes - free
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no
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$0
-
70.00%
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$50,000
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$15,000,000
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Variable
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Principal & Interest
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Owner Occupier
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Weekly, Fortnightly, Monthly
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Receive $3,288 cashback when you refinance an existing home loan of $250,000. Must apply by 31 December 2021 and settle by 28 February 2022.
Read our Mozo Review to learn more about the Discounted Home Value Loan
Details Close
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1.99% p.a.
fixed 2 years3.68% p.a.
$1234
Product details Close detailsSpecial Fixed Rate Home Loan Premium Plus Package
Owner Occupier, Principal & Interest
1.99% p.a.
fixed 2 years3.68% p.a.
Lock in a low fixed rate or choose to split your loan between fixed and variable. Insurance discounts and no fee credit card or zero fee personal loan available. $2,000 cashback offer for investor & owner occupied home loans over $250k with LVR ≤80% when refinancing to Newcastle Permanent. Limited time offer extended, T&Cs apply.
Special Fixed Rate Home Loan Premium Plus Package
Lock in a low fixed rate or choose to split your loan between fixed and variable. Insurance discounts and no fee credit card or zero fee personal loan available. $2,000 cashback offer for investor & owner occupied home loans over $250k with LVR ≤80% when refinancing to Newcastle Permanent. Limited time offer extended, T&Cs apply.
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1.99% p.a.
fixed 2 years -
3.68% p.a.
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$0
-
$395.00 yearly
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$0.00
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yes - free up to $25,000 p.a.
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yes - free
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no
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$0
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80.00%
-
-
-
-
-
Fixed
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Principal & Interest
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Owner Occupier
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Weekly, Fortnightly, Monthly
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$2,000 cashback when you refinance your home loan from another financial institution when you apply by 31 March 2022 and are funded by 31 March 2022, min $250k, LVR <80%
Read our Mozo Review to learn more about the Special Fixed Rate Home Loan
Details Close
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Featured Product
Hot Deal $590 Establishment Fee waived for eligible Prime loans submitted before 30 November.
2.23% p.a. variable
2.25% p.a.
$1234
Product details Close detailsPrime Home Loan
Owner Occupier, Principal & Interest, LVR <70%
2.23% p.a. variable
2.25% p.a.
Bluestone's lowest ever variable rates from 2.23%* (2.25% comparison rate**). No risk fees or LMI. No credit scoring, fee-free offset account. Waived $590 establishment fee on applications submitted before 30 Nov.
Prime Home Loan
Bluestone's lowest ever variable rates from 2.23%* (2.25% comparison rate**). No risk fees or LMI. No credit scoring, fee-free offset account. Waived $590 establishment fee on applications submitted before 30 Nov.
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2.23% p.a. variable
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2.25% p.a.
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$1,110
-
-
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$250.00
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yes - free
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yes - free
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yes
-
$1,110
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70.00%
-
$100,000
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$2,500,000
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Variable
-
Principal & Interest
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Owner Occupier
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Weekly, Fortnightly, Monthly
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Read our Mozo Review to learn more about the Prime Home Loan
Details Close
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1.99% p.a. variable
1.89% p.a.
$1234
Product details Close detailsRate Reducing Variable Rate Home Loan
Owner Occupier, Principal & Interest, LVR <80%
1.99% p.a. variable
1.89% p.a.
OneTwo’s Rate Reducing Variable Rate Home Loan brings features a low variable rate for owner-occupier refinancers. It has low fees and rewards borrowers for repaying the loan by lowering their rate. (T&Cs apply). Available to refinancers in metro NSW and Victoria only.
Rate Reducing Variable Rate Home Loan
OneTwo’s Rate Reducing Variable Rate Home Loan brings features a low variable rate for owner-occupier refinancers. It has low fees and rewards borrowers for repaying the loan by lowering their rate. (T&Cs apply). Available to refinancers in metro NSW and Victoria only.
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1.99% p.a. variable
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1.89% p.a.
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$0
-
$0.00
-
$0.00
-
yes - free
-
no
-
no
-
$0
-
80.00%
-
$20,000
-
$2,000,000
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Variable
-
Principal & Interest
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Owner Occupier
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Fortnightly, Monthly
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Read our Mozo Review to learn more about the Rate Reducing Variable Rate Home Loan
Details Close
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^See information about the Mozo Experts Choice Home loans Awards
^Based on a $300,000 variable rate, principal and interest home loan over 25 years. Average variable rate 4.35%.
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