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
- loans.com.au
3.64% p.a. variable
3.66% p.a.
$1234
Product details Close detailsloans.com.au Essentials Variable 80
Owner Occupier, Principal & Interest
3.64% p.a. variable
3.66% p.a.
A low-rate home loan that could save you thousands. No monthly or ongoing fees. Unlimited additional repayments. Unlimited free redraws with no minimum redraw amount. Winner of two Mozo Experts Choice Awards 2018 - Investor Home Loan & Low Cost Home Loan.^
Essentials Variable 80
A low-rate home loan that could save you thousands. No monthly or ongoing fees. Unlimited additional repayments. Unlimited free redraws with no minimum redraw amount. Winner of two Mozo Experts Choice Awards 2018 - Investor Home Loan & Low Cost Home Loan.^
-
3.64% p.a. variable
-
3.66% p.a.
-
$520
-
$0.00
-
$0.00
-
yes - free
-
yes - free
-
no
-
80.00%
-
$50,000
-
$2,000,000
-
Variable
-
Principal & Interest
-
Owner Occupier
-
Weekly, Fortnightly, Monthly
Read our Mozo Review to learn more about the Essentials Variable 80
-
- HSBC
3.59% p.a. variable
3.61% p.a.
$1234
Product details Close detailsHSBCDiscounted Home Value Loan
Owner Occupier, Principal & Interest
3.59% p.a. variable
3.61% p.a.
Discounted rate for the life of the loan. A relationship manager to help you through the application process.
Discounted Home Value Loan
Discounted rate for the life of the loan. A relationship manager to help you through the application process.
-
3.59% p.a. variable
-
3.61% p.a.
-
$150
-
$0.00
-
$300.00
-
yes - free
-
yes - free online
-
no
-
90.00%
-
$50,000
-
$7,500,000
-
Variable
-
Principal & Interest
-
Owner Occupier
-
Weekly, Fortnightly, Monthly
Read our Mozo Review to learn more about the Discounted Home Value Loan
-
- Newcastle Permanent
3.89% p.a. variable
4.29% p.a.
$1234
Product details Close detailsNewcastle Permanent Discounted Variable Home Loan Premium Plus Package
Owner Occupier, Principal & Interest
3.89% p.a. variable
4.29% p.a.
Experts Choice - Australia's Best Customer-Owned Banking & Home Lender of the Year 2018.^
Discounted Variable Home Loan Premium Plus Package
Experts Choice - Australia's Best Customer-Owned Banking & Home Lender of the Year 2018.^
-
3.89% p.a. variable
-
4.29% p.a.
-
$0
-
$395.00 yearly
-
$0.00
-
yes - free
-
yes - free
-
yes
-
90.00%
-
$150,000
-
-
-
Variable
-
Principal & Interest
-
Owner Occupier
-
Weekly, Fortnightly, Monthly
Read our Mozo Review to learn more about the Discounted Variable Home Loan Premium Plus Package
-
- ME
3.97% p.a. variable
3.99% p.a.
$1234
Product details Close detailsMEBasic Home Loan
Owner Occupier, LVR<80%, Principal and Interest
3.97% p.a. variable
3.99% p.a.
No fees to redraw & low variable rate. Meet a mobile banker at a time or place that suits you.
Basic Home Loan
No fees to redraw & low variable rate. Meet a mobile banker at a time or place that suits you.
-
3.97% p.a. variable
-
3.99% p.a.
-
$400
-
$0.00
-
$350.00
-
yes - free
-
yes - free
-
no
-
80.00%
-
$40,000
-
-
-
Variable
-
Principal & Interest
-
Owner Occupier
-
Weekly, Fortnightly, Monthly
Read our Mozo Review to learn more about the Basic Home Loan
-
- Hunter United
4.19% p.a. variable
4.19% p.a.
$1234
Product details Close detailsHunter UnitedInterest Only Owner Occupier Home Loan
4.19% p.a. variable
4.19% p.a.
Interest Only could offer the relief you need. Get fast approval on a 2-year interest only owner occupied home loan of $300,000 or more.
Interest Only Owner Occupier Home Loan
Interest Only could offer the relief you need. Get fast approval on a 2-year interest only owner occupied home loan of $300,000 or more.
-
4.19% p.a. variable
-
4.19% p.a.
-
$0
-
$0.00
-
$80.00
-
yes
-
yes - 1st redraw per month free
-
no
-
80.00%
-
$300,000
-
-
-
Variable
-
Interest Only
-
Owner Occupier
-
Weekly, Fortnightly, Monthly
Read our Mozo Review to learn more about the Interest Only Owner Occupier Home Loan
-
- Virgin Money
3.69% p.a. variable
3.83% p.a.
$1234
Product details Close detailsVirgin MoneyReward Me Variable Rate Home Loan
Owner Occupier, Principal & Interest, LVR<80%
3.69% p.a. variable
3.83% p.a.
Competitive rates from 3.69% p.a. Plus receive 20,000 Velocity Points for every $100,000 drawn at settlement.
Reward Me Variable Rate Home Loan
Competitive rates from 3.69% p.a. Plus receive 20,000 Velocity Points for every $100,000 drawn at settlement.
-
3.69% p.a. variable
-
3.83% p.a.
-
$150
-
$10.00 monthly
-
$320.00
-
yes - free
-
yes - free
-
yes
-
80.00%
-
$750,000
-
-
-
Variable
-
Principal & Interest
-
Owner Occupier
-
Weekly, Fortnightly, Monthly
Read our Mozo Review to learn more about the Reward Me Variable Rate Home Loan
-
-
Hot Deal QLD only
QBANK3.84% p.a. variable
3.87% p.a.
$1234
Product details Close detailsQBANKDiscounted Classic Home Loan
LVR <90%, Owner Occupier
3.84% p.a. variable
3.87% p.a.
A low variable Home Loan rate with no monthly fees and flexible repayments.
Discounted Classic Home Loan
A low variable Home Loan rate with no monthly fees and flexible repayments.
-
3.84% p.a. variable
-
3.87% p.a.
-
$195
-
$0.00
-
$200.00
-
yes - free
-
yes - free
-
no
-
90.00%
-
$150,000
-
$2,000,000
-
Variable
-
Principal & Interest
-
Owner Occupier
-
Weekly, Fortnightly, Monthly
Read our Mozo Review to learn more about the Discounted Classic Home Loan
-
- Aussie
3.84% p.a. variable
3.85% p.a.
$1234
Product details Close detailsAussieSelect Basic Variable
LVR<80%, Owner Occupier, Principal & Interest
3.84% p.a. variable
3.85% p.a.
A low rate loan with a range of features, no ongoing management fees, and discounted interest rates to best fit your particular situation.
Select Basic Variable
A low rate loan with a range of features, no ongoing management fees, and discounted interest rates to best fit your particular situation.
-
3.84% p.a. variable
-
3.85% p.a.
-
$330
-
$0.00
-
$535.00
-
yes - free
-
yes - free
-
no
-
80.00%
-
$100,000
-
$5,000,000
-
Variable
-
Principal & Interest
-
Owner Occupier
-
Fortnightly, Monthly
Read our Mozo Review to learn more about the Select Basic Variable
-
- AMP
3.74% p.a. variable
4.13% p.a.
$1234
Product details Close detailsAMPVariable Rate Loan Professional Package
Owner Occupier, Principal & Interest
3.74% p.a. variable
4.13% p.a.
Benefit from 100% loan offset account with variable rate loan. Redraw any extra funds whenever you like, with no withdrawal fees!
Variable Rate Loan Professional Package
Benefit from 100% loan offset account with variable rate loan. Redraw any extra funds whenever you like, with no withdrawal fees!
-
3.74% p.a. variable
-
4.13% p.a.
-
$295
-
$349.00 yearly
-
$350.00
-
yes - free
-
yes
-
yes
-
90.00%
-
$500,000
-
$749,999
-
Variable
-
Principal & Interest
-
Owner Occupier
-
Weekly, Fortnightly, Monthly
Read our Mozo Review to learn more about the Variable Rate Loan Professional Package
-
- NAB
3.99% p.a. variable
4.03% p.a.
$1234
Product details Close detailsNABBase Variable Rate Home Loan Special Offer
Owner Occupier, Principal & Interest
3.99% p.a. variable
4.03% p.a.
Low ongoing rate. Free extra repayments and redraw facility. Only 5% deposit and no annual or monthly fees.
Base Variable Rate Home Loan Special Offer
Low ongoing rate. Free extra repayments and redraw facility. Only 5% deposit and no annual or monthly fees.
-
3.99% p.a. variable
-
4.03% p.a.
-
$600
-
$0.00
-
$350.00
-
yes - free
-
yes
-
no
-
95.00%
-
$20,000
-
-
-
Variable
-
Principal & Interest
-
Owner Occupier
-
Weekly, Fortnightly, Monthly
Read our Mozo Review to learn more about the Base Variable Rate Home Loan Special Offer
-
^Based on a $300,000 variable rate, principal and interest home loan over 25 years. Average variable rate 4.35%.
Calculate your home loan repayments
We can show you the monthly repayment amount for a range of loans
Mozo may receive advertising fees from the financial institutions, issuers of financial or credit products and third party advice providers that are shown on this page. These fees are based on a cost per click, cost per acquisition, or a fixed fee.
