Sketch of a house and some home loan calculations under a coffee cup

Compare low rate home loans

A home loan with a low interest rate could be the most effective way to keep your monthly mortgage repayments down and your long-term costs as low as possible. Start comparing low rate home loans from a range of Australian lenders with ease by using our comparison table below!

Fact Checked

Low rate home loan comparisons on Mozo - last updated 29 November 2021

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure.
  • placeholder
    Mozo Experts Choice 2021
    Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    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.

    Compare
    Go to site
    Details
  • placeholder
    Variable Home Loan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    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.

    Compare
    Go to site
    Details
  • placeholder
    Equity Plus

    Owner Occupier, Principal & Interest, LVR <60%

    interest rate
    comparison rate
    Initial monthly repayment
    1.82% p.a. variable
    1.85% p.a.

    Low rate variable home loan with optional offset. Free online redraw. No valuation fee. Purchase, refinance or equity release purposes allowed. Min 40% deposit.

    Compare
    Go to site
    Details
  • placeholder
    Economy Variable Home Loan

    Owner Occupier, Principal & Interest, <70% LVR, Debt to Income ratio <6

    interest rate
    comparison rate
    Initial monthly repayment
    1.98% p.a. variable
    2.15% p.a.

    An ongoing low variable interest rate with free redraw, flexible repayment options and one free valuation. Discounted Economy variable rate available for owner occupier lending with max LVR of 70%. Refinance to BOQ by 30 November 2021 and get $3,000 cashback (T&Cs apply).

    Compare
    Details
  • placeholder
    Mozo Experts Choice 2021
    Variable Home Loan Special

    Owner Occupier, Principal & Interest, LVR <80%

    interest rate
    comparison rate
    Initial monthly repayment
    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.

    Compare
    Go to site
    Details
  • placeholder
    Mozo Experts Choice 2021
    Smart Booster Home Loan

    2 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    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.

    Compare
    Go to site
    Details
  • placeholder
    Mozo Experts Choice 2021
    UHomeLoan - Discount Offer

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    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.

    Compare
    Go to site
    Details
  • placeholder
    Basic Home Loan

    Owner Occupier, LVR<60%, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    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.

    Compare
    Go to site
    Details
  • placeholder
    Discount Variable Home Loan

    Owner Occupier, LVR<70%, over $700,000

    interest rate
    comparison rate
    Initial monthly repayment
    2.19% p.a. variable
    2.24% p.a.

    No monthly administration fees. Ability to make extra repayments and redraws. A great low rate. No ongoing fees. Experience the difference this established bank has to offer.

    Compare
    Go to site
    Details
  • placeholder
    Mozo Experts Choice 2021
    UHomeLoan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    2.49% p.a.
    fixed 3 years
    2.29% p.a.

    $0 fees and easy application. Choose between weekly, fortnightly or monthly repayments. 3 year fixed rates are for new Owner Occupier Principal & Interest loans.

    Compare
    Go to site
    Details
  • placeholder
    Mozo Experts Choice 2021
    Evaporate Variable Home Loan

    60-70% LVR, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    2.09% p.a. variable
    2.02% p.a.

    Fast online application with no fees. Free extra repayments and redraw facility. Min 20% deposit. Crowned Best New Home Loan for 2020 by the Mozo Experts.^

    Compare
    Go to site
    Details
  • placeholder
    Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR 70-80%

    interest rate
    comparison rate
    Initial monthly repayment
    2.74% p.a.
    fixed 2 years
    2.34% p.a.

    Get a flexible loan structure with up to six loan accounts with different rate types. Make free extra repayments. Enjoy free redraw facility. No upfront or ongoing fees. Option to earn Qantas points.

    Compare
    Go to site
    Details
  • placeholder
    Green Home Loan

    Owner Occupier

    interest rate
    comparison rate
    Initial monthly repayment
    2.08% p.a. variable
    2.36% p.a.

    Great low rate on investment loans when you package with your owner-occupied loan.

    Compare
    Go to site
    Details
  • placeholder
    Mozo Experts Choice 2021
    Liberate Variable Home Loan

    70-80% LVR, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    2.19% p.a. variable
    2.08% p.a.

    Fast online application with no fees. Free extra repayments and redraw facility. Min 20% deposit. Athena automatically lowers the rate as the loan is paid down. Winner of three Mozo Expert's Choice Awards for 2021.

    Compare
    Go to site
    Details
  • placeholder
    Mozo Experts Choice 2021
    No Frills Home Loan

    Owner Occupier, Principal & Interest, LVR <70%

    interest rate
    comparison rate
    Initial monthly repayment
    2.19% p.a. variable
    2.19% p.a.

    Qudos Bank No Frills Home Loan with $0 bank fees and unlimited repayments. Winner of the Split Home Loan award in 2020. ^

    Compare
    Details
  • placeholder
    Well Balanced Fixed

    Owner Occupier, Principal & Interest, LVR <80%

    interest rate
    comparison rate
    Initial monthly repayment
    1.87% p.a.
    fixed 1 year
    1.89% p.a.

    Super low fixed rate and only 20% deposit required. Optional 100% offset account. Free extra repayments and redraw facility. Flexible repayment schedule.

    Compare
    Go to site
    Details

Want more home loan options?

Compare by home loan type

Browse all 501 home loans in Mozo's comparison database

Search now

^See information about the Mozo Experts Choice Home loans Awards

*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.

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.

Home loan lenders we compare at Mozo

Save with deals from the following well-known brands and many more...

See all home loan providers

Home loan resources

Views, news, tips and guides to help find the home loan for you.

Home Loan FAQs
Guides & Tips
Home Loan Reviews
Home Loan Calculators
News

Finding the lowest rate home loan for your needs

The thing about home loans is that they’re all different - as are home loan interest rates. That’s important, because the rate you get with your mortgage is going to play a major role in determining how much you pay over the life of the loan.

That’s why, when it comes to comparing home loans, finding the lowest home loan interest rate possible will be right at the top of the priority list for many borrowers. After all, if you can find a way to reduce the total amount of interest you pay by thousands or even tens of thousands of dollars, why wouldn’t you? 

Factors that influence your home loan rate 

Not every borrower is going to be able to snag the very lowest home loan rate on the market, because there are a number of factors that banks and other lenders take into account when determining their rates. Some of these include: 

  • The type of borrower you are: owner occupier or investor

  • The size of your loan

  • The type of repayments: principal and interest or interest-only

  • The type of rate you want: fixed or variable

  • Your loan-to-value ratio (LVR) - i.e. the size of your deposit or your equity

All of that is to say that there are low rate home loans available for various types of borrowers and for different circumstances, of which we’ll go into more detail further below.

What is a low interest rate for a home loan in Australia?

Plenty of Australians will be able to remember sky high mortgage rates of up to 17% p.a. back in the late 1980s and early 1990s, but they have steadily fallen over the decades. More recently, thanks in part to six cuts to the official cash rate from the Reserve Bank since June 2019, rates have dropped even lower - to the point where they’re at some of the lowest levels they’ve ever been. 

Before we get into specific low interest home loans, it’s worth setting a baseline by looking at some average home loan rates. Since 2015, Mozo has used the hundreds of loans being tracked in our database to calculate average rates for different types of borrowers, which you can check out in detail for yourself over on our Australian home loan statistics page. 

But what does a really sharp rate look like at present? Here’s a selection of some of the lowest home loan interest rates currently in the Mozo database.

Lowest home loan rates for owner occupiers (80% LVR) - November 2021

  • Variable rate: 1.88% p.a. (1.97% p.a. comparison rate*) on the Reduce Home Loans Super Saver Variable
  • 1-year fixed rate: 1.59% p.a. (2.15% p.a. comparison rate*) on the Greater Bank Great Rate Home Loan 

  • 2-year fixed rate: 1.59% p.a. (2.10% p.a. comparison rate*) on the Greater Bank Great Rate Home Loan 

  • 3-year fixed rate: 1.89% p.a. (1.93% p.a. comparison rate*) on the Police Credit Union Better Home Loan

  • 4-year fixed rate: 1.89% p.a. (2.24% p.a. comparison rate*) on the Gateway Bank Green Plus Home Loan

  • 5-year fixed rate: 2.47% p.a. (2.14% p.a. comparison rate*) on the FreedomLend Fixed Home Loan

Lowest home loan rates for investors (80% LVR) - November 2021

  • 1-year fixed rate: 1.89% p.a. (2.54% p.a. comparison rate*) on the Greater Bank Great Rate Home Loan 

  • 2-year fixed rate: 1.99% p.a. (2.50% p.a. comparison rate*) on the Greater Bank Great Rate Home Loan 

  • 3-year fixed rate: 2.09% p.a. (2.46% p.a. comparison rate*) on the UBank UHomeLoan

  • 4-year fixed rate: 2.49% p.a. (3.40% p.a. comparison rate*) on the Police Credit Union Fixed Rate Home Loan

  • 5-year fixed rate: 2.54% p.a. (2.57% p.a. comparison rate*) on the UBank UHomeLoan

Like savings account or credit card rates, the home loan rate ‘landscape’ is always changing though, which means that a home loan rate which is competitive one week won’t necessarily be as competitive in a month’s time. So if you’re interested in keeping up to date with some of the latest home loan offers, it’s worth regularly checking in on the rates on this page, or visiting our other dedicated home loan pages for variable rates, fixed rates, refinancers and investors.

What types of home loans have low interest rates?

As we alluded to above, different types of home loans come with higher and lower interest rates. This is largely a matter of risk (as calculated by lenders), which is why ‘less risky’ loans tend to come with lower rates. Now, it’s important to say that rates ultimately differ from one lender to the next, but there are some broad generalisations that hold true between different types of home loans. Here are a few examples:

Owner occupiers vs investors 

While they were once roughly similar, there’s now a noticeable gap between owner occupier home loan rates and investment home loan rates. On average, lenders offer lower rates to owner occupiers than they do to investors, because property investors are generally considered riskier. That’s not to say that there aren’t low home loan rates available to investors, but they may not be eligible for some of the very sharpest rates around.  

Principal and interest vs interest-only

Many mortgage lenders offer customers the choice between making principal and interest or interest-only repayments. Some borrowers - particularly investors - elect to go interest-only on their loans for a limited amount of time (generally up to 5 years), as it’s a way to initially make lower repayments. However, interest-only home loans tend to come with higher interest rates than principal and interest home loans because interest-only borrowers are deemed to be at a higher risk of defaulting. 

High deposit vs low deposit 

When it comes to determining your home loan rate, the loan-to-value ratio (LVR) is a major factor. In short, LVR is the amount you’re borrowing versus the value of the property, which is then used to calculate your risk as a borrower. Generally speaking, if you have a larger initial deposit or built-up equity in the home (if you’re refinancing) which means your LVR is below 80%, you’ll be considered a ‘safer’ borrower by many lenders and therefore will often have access to lower rates. On the flipside, low deposit home loans tend to come with higher rates. 

Fixed rates vs variable rates

One of the big decisions you’ll need to make when taking out a mortgage is whether you want to lock in a fixed rate for a few years or go with a variable rate. There are positives and negatives to each option, including the features and loan flexibility on offer, but you’ll also need to weigh up the rates on offer. At present though there’s not too much difference between some of the lowest home loan rates available on both fixed rate and variable rate loans, which means there’s plenty of choice.

What should I consider as well as a low interest rate when getting a mortgage? 

Nabbing a low interest home loan is, perhaps, going to be the major priority for many borrowers, but it won’t be the only consideration. Some of the other factors that are worth weighing up include: 

  • Fees: While interest is likely to be the biggest over loan cost, fees can’t be discounted - particularly annual or monthly service fees which can really add up over the life of a loan. There are also a number of one-off fees that borrowers will want to take note of, such as application fees, legal fees, settlement fees, valuation fees and discharge fees. 

  • Features: Want to reduce the amount of interest you pay on your loan or split your loan between a fixed and variable rate? Having access to home loan features like an offset account, redraw facility, split loan option or even repayment holidays may be important to you, though not all loans come with all of these features. 

  • Flexibility: While a lot of the features above may provide you with extra flexibility when it comes to managing your loan, you may also want to look out for other flexible options like being able to make your repayments on weekly, fortnightly or monthly basis, or to make extra contributions to your loan balance in order to pay it off faster.

What will I need to qualify for the lowest interest rate?

As we mentioned earlier, lenders take a multitude of factors into account when it comes to the rates they offer. But whether you’re an owner occupier, investor, refinancer or first home buyer, there are some of the minimum requirements you’ll typically need to meet in order to get a low rate home loan: 

  • Have an LVR below 80%: A borrowers’ loan-to-value ratio will affect the interest rate they can receive, with ‘safer’ borrowers typically able to access lower rates than those with higher LVRs. Generally those with an LVR below 80% can expect to get lower rates, and lenders are increasingly offering even sharper rates for borrowers with LVRs below 70% or even 60%.

  • Make principal and interest repayments: Banks and lenders almost always charge a premium for borrowers who elect to make interest-only repayments on their loan, so if you’re looking to grab a low interest home loan then you should be prepared to make principal and repayments on it. 

  • Opt for a basic loan: While there are certainly a number of packaged home loan options that also come with competitive interest rates, the mortgages with the lowest home loan interest rates tend to be more ‘basic’ home loans. 

Which lenders offer the lowest rates? 

In Australia the home loan market is dominated by the big four banks: ANZ, Commonwealth Bank, NAB and Westpac. While these major players have the most customers, they often don’t provide the lowest home loan interest rates around. So who does? Unfortunately, it’s not as simple as pointing to one particular lender that does offer the lowest rates, because rates always chop and change. If you are on the hunt for a sharper rate, comparing loans from a range of different lenders outside of the big four might not be a bad move though. These include: 

  • Challenger banks: While not as large as Australia’s four major players, larger ‘challenger’ banks like BOQ, HSBC, ING, Macquarie and Suncorp often have many of the benefits of the big four (like big customer service operations or apps and online platforms) while also offering competitive mortgage rates. 

  • Credit unions and mutual banks: Australia is home to a large number of customer-owned banks, mutuals and credit unions, including the likes of Bank Australia, Great Southern Bank and Newcastle Permanent. In addition to their community and customer focus, these lenders often offer sharp rates with their home loans. 

  • Online lenders: If there’s one group of lenders synonymous with low rate home loans it’s online lenders. Because they predominantly operate online without the normal overheads of a bank, online lenders like Homestar, loans.com.au and Well Home Loans are able to offer consistently competitive rates. 

  • Fintechs: Similar to online lenders, emerging fintechs are often able to pass on reduced costs (and lower rates) thanks to their digital approach to lending. Fintech lenders are also characterised by their innovations - for example, Athena has an automatic rate drop feature which kicks in once a borrower's LVR drops below particular LVR tiers.
Picture of JP Pelosi
JP Pelosi
Managing editor

Jean-Paul (JP) Pelosi is an experienced journalist and editor who has contributed to many of Australia's leading media outlets including The Guardian, News.com.au, Domain.com.au, Investment Magazine and ANZ's Bluenotes. He has also edited news and communications for large financial services companies such as CommBank, Suncorp, Allianz and Amex. He loves a well told story and applying his editorial experience to content that readers both care about and enjoy. JP heads up our writing team.

Frequently asked questions (FAQs) about low rate home loans

What is a comparison rate?

Comparison rates are designed to provide borrowers with a better reflection of the true cost of the loan. That’s because the comparison rate not only takes into account the advertised or ‘headline’ interest rate, but also things like fees and charges plus the amount being borrowed, the loan term and the repayment frequency. 

What is an introductory home loan rate? 

Some lenders offer variable rate home loans that come with an introductory rate - generally for 1 or 2 years. Introductory rates tend to be quite competitive as they’re used by lenders to draw in customers, but it’s always worth weighing any intro rate up against the ongoing variable rate attached to the loan. 

Is the lowest home loan rate always the cheapest?

In short, not always. While finding a low home loan rate is a great starting point to reducing the amount you pay on your mortgage, you’ll also need to consider any ongoing or one-off fees that come with the loan as well as the revert rate (if it’s a fixed loan). That’s because these costs will also contribute to the overall amount you'll earn, which is why it’s always worth looking at the comparison rate as well as the headline interest rate. 

Do banks have to pass on RBA rate cuts?

While home loan interest rates do tend to move in tandem with the Reserve Bank’s official cash rate, it’s a common misconception that mortgage lenders need to pass on any RBA rate cut in full to their customers.  

How can I calculate my home loan repayments?

Before you purchase a property you’ll want to know how much you’ll need to budget for in the way of home loan repayments. Our home loan repayments calculator can help you work out how much your regular repayments will be and how much total interest you’ll end up paying on your loan - all you’ll need to do is plug in your loan amount, loan term and your interest rate to get started!

What grants and schemes are available to first home buyers? 

If you're purchasing a property for the first time you may be eligible for a number of first home owner grants and deposit schemes in Australia. These include the various state-based first home owners grants, as well as the First Home Loan Deposit Scheme, the First Home Super Saver Scheme and the Family Home Guarantee. 

Can I borrow with a 5% deposit?

Yes! In order to access some of the lowest home loan interest rates around borrowers will typically need a deposit of at least 20%, but that doesn’t mean that there aren’t plenty of low deposit home loans available to those with deposits as low as 10% or even 5%. Bear in mind is that lenders mortgage insurance (LMI) may be required of anyone with a deposit under 20% though. 

What are the best home loans? 

At the end of the day there’s no single best home loan - it all depends on your wants and needs as a borrower. That’s not to say that there aren’t loans which stand out above the pack though. Every year our expert judges analyse hundreds of Australian home loans as part of our Mozo Experts Choice Awards, naming winners in a range of categories including best Low Cost Home Loans, best First Home Buyers Loans and best Investor Home Loans. 

To find out more, check out our run through of some of the best home loans in Australia or visit the Mozo Experts Choice Home Loan Awards page for a full list of winners and a copy of the award methodology report. 

How can I compare low interest home loans?

If you’re ready to compare a range of low rate home loans on rates, fees, features and more, then a great place to start is our comparison table at the top of this page. Plug in your loan amount and loan term and you’ll be able to see your initial monthly repayment displayed next to each loan,  or to compare even more loans, head over to our main home loan comparison hub. 

Home Loan Reviews

MyState Bank Home Loan
Overall 1/10
CONSIDERING CONTACTING A CURRENT AFFAIR PROGRAMME

Have a daughter applying for a home loan single person! Cannot believe understand the crap/delay/frustration/stress/stress and depression she is undergoing through this Organisation! Would not recommend Your Organisationtion - you advertise quick turnover for Loan applications - SUGGEST YOU ADVERTISE SOMEWHAT DIFFERENT - SLOW GO - SLOW PROCESS- SLOW APPROVAL - YOU SHOULD BE HELD ACCOUNTABLE - YOU DEFINITELY DO NOT PREACH WHAT YOU ADVERTISE!!!!! FALSE ADVERTISING COMPLETELY!!!!!!!

Read full review

Have a daughter applying for a home loan single person! Cannot believe understand the crap/delay/frustration/stress/stress and depression she is undergoing through this Organisation! Would not recommend Your Organisationtion - you advertise quick turnover for Loan applications - SUGGEST YOU ADVERTISE SOMEWHAT DIFFERENT - SLOW GO - SLOW PROCESS- SLOW APPROVAL - YOU SHOULD BE HELD ACCOUNTABLE - YOU DEFINITELY DO NOT PREACH WHAT YOU ADVERTISE!!!!! FALSE ADVERTISING COMPLETELY!!!!!!!

Price
1/10
Features
1/10
Customer service
1/10
Trust
1/10
Less
Daphne, Queensland, reviewed 12 days ago
RAMS Fixed Rate
Overall 1/10
Do yourself a favour and go with someone else to g

Absolutely useless bank. Their customer service policies are terrible and make it so difficult to resolve simple queries. I had an agent make mistakes during ID validation meaning I had to go on hold again and explain my situation again to a new person for no reason. What a waste of 20 minutes! Secondly, it’s genuinely easier to switch to a new bank than it is to stay with RAMS and complete a simple change. Why is that the case? RAMS is a bank living in the past and is better of being buried. Do yourself a favour and go with someone else to get better features, better rates and better service!

Read full review

Absolutely useless bank. Their customer service policies are terrible and make it so difficult to resolve simple queries. I had an agent make mistakes during ID validation meaning I had to go on hold again and explain my situation again to a new person for no reason. What a waste of 20 minutes! Secondly, it’s genuinely easier to switch to a new bank than it is to stay with RAMS and complete a simple change. Why is that the case? RAMS is a bank living in the past and is better of being buried. Do yourself a favour and go with someone else to get better features, better rates and better service!

Price
2/10
Features
1/10
Customer service
1/10
Convenience
1/10
Trust
1/10
Less
Manish, New South Wales, reviewed 12 days ago
firstmac Home Loan
Overall 1/10
Very unhappy customer would never never recommend

Misleading information. Pre approved then not pre approved. Offered loan then cancelled. Re financed then had to re finance again. Took up to 6 months with no answer and still no pre approval. Would not recommend at all very unhappy customer.

Read full review

Misleading information. Pre approved then not pre approved. Offered loan then cancelled. Re financed then had to re finance again. Took up to 6 months with no answer and still no pre approval. Would not recommend at all very unhappy customer.

Customer service
1/10
Trust
1/10
Less
Sarah, Queensland, reviewed 12 days ago
See tips
Home loan tips

Whether you’re after the lates home reno trends, money-saving tips or cheapest home loan deals, Mozo’s moneyvators have it covered. Check out our collection of money savvy articles and top tips.

See case studies
Home loan case studies

Find out how you can save on your home loan or learn about loan options for refinancing and investing with this series of helpful case studies and home loan scenarios.

See home loan providers
Home loan providers

Find the right home lender fast. Mozo details all home loan providers along with their home loan products right here so you compare rate, fees and features easily.

See more home loan resources