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OneTwo Rate Reducing Variable Rate Home Loan

Advertiser disclosure
Rate
1.99% p.a.
Comparison Rate
1.89% p.a.
Service fee
$0.00
Upfront fee
$0
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Mozo editorial review OneTwo Rate Reducing Variable Rate Home Loan - last updated: 26 November 2021

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What's hot
  • 1.99% p.a. (1.89% p.a. comparison rate*)
  • Receive discounts as you pay down your loan
  • Extra repayments matched up to $2,500 for first six months
What's not
  • No offset account
  • No redraw facility
Mozo snapshot

Along with the low 1.99% p.a. variable rate (1.89% p.a. comparison rate*), the Rate-Reducing Home Loan from OneTwo comes with a number of perks that Aussie borrowers are sure to appreciate. For starters, OneTwo will reduce your interest rate by 0.03% each time you pay off 5% of your original loan amount (discount capped at 0.15%). And not only will you be able to pay down your loan ahead of schedule without being penalised, but OneTwo will match any extra repayments made in the first six months, up to a total of $2,500.

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Key features

The Rate-Reducing Home Loan is available for owner occupiers looking to refinance an established residential property. Variable rates start at 1.99% p.a. (1.89% p.a. comparison rate*), but as the name suggests, you’ll receive discounts as you pay down your loan over time. 

OneTwo explains that for every 5% of your original loan amount that you pay off, a discount of 0.03% will automatically be applied to your rate. You’ll continue receiving these discounts until 25% of your original balance is paid off, meaning a total of 0.15% will be chipped off your interest rate over time. 

You can opt to make repayments either fortnightly or monthly, and extra repayments can be made without incurring any penalties. As an added bonus, OneTwo will match any extra repayments you make in the first six months, up to $2,500 in total. Just be mindful that this loan doesn’t come with a redraw facility, so you won’t be able to retrieve those additional funds if you’re in a pinch. 

Thankfully, there are no application, account keeping or exit fees, so you can be confident that your hard earned money is going towards your loan balance and not being eaten up by any extra costs. OneTwo will, however, charge a late fee or a direct debit dishonour if you miss a repayment.

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Who is it good for

This loan could be a good fit for refinancers in metropolitan NSW and Victoria who want to be rewarded for chipping away at their home loan balance.

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Any catches

Currently, this home loan is only available to borrowers in metropolitan NSW and Victoria. As mentioned above, you must be refinancing a loan for a property you live in. Loan amounts range from $20,000 to $2 million and your loan-to-value ratio (LVR) must be 80% or less.

Details

Rates and fees information correct as at 27 November 2021. Mozo has robust processes to ensure our site is updated to reflect the latest information from providers. There may be the odd occasion where updates are delayed, so please confirm information before purchasing.
Rates

1.99% p.a.

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n/a

n/a

1.89% p.a.

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n/a

n/a

n/a

n/a

n/a

n/a

n/a

Fees

$0.00

$0.00

$0.00

$0.00

n/a

$0.00

$0.00

Other financial bits

$20,000

$2,000,000

none

80.00%

Features

Owner Occupier

Principal & Interest

Fortnightly, Monthly

yes - free

no

no

none

no

no

none

OneTwo will match your extra loan payments made in first 6 months dollar-for-dollar, up to $2,500 in total.

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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.

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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.