Rate rise or refinance? The choice is yours

By Mozo ·

Australian's have enjoyed some seriously low home loan rates for a long time, but the winds may finally be changing with recent indications from RBA Governor Philip Lowe hinting that a rate rise may finally be on the way. 

So, will you be up for a rate increase or is now the time to join the rush of refinancers and seek out a better deal?

Analysis by Mozo shows a borrower with a loan of $300,000 switching from the current* average variable rate in the Mozo database of 4.35% to the lowest variable rate of 3.39% could save a refinancer $1,896 over 12 months.

Home Loan Comparison Table - rates updated daily

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure.

  • mozo-experts-choice-2020

    2.29% p.a. fixed 3 years

    2.95% p.a.

  • 2.59% p.a.variable

    2.62% p.a.

  • mozo-experts-choice-2020

    2.57% p.a.variable

    2.59% p.a.

  • mozo-experts-choice-2020

    2.49% p.a.variable

    2.49% p.a.

  • 2.69% p.a.variable

    2.86% p.a.


Demand for fixed rate loans is also likely to increase as borrowers look for certainty when it comes to their monthly repayments, with a number of competitive fixed rate deals currently on offer.

Potential refinancing savings: 

Current loan type Rate New loan type Rate Annual Saving
Average variable rate 4.35% Best variable rate Reduce 3.39% $1,894
Average Big 4 variable rate 4.62% Best variable rate Reduce

3.39% $2,445
Average variable rate4.35%Best fixed rate (3yr)Easy Street


Average Big 4 variable rate 4.62% Best fixed rate (3yr)Easy Street 3.69%1,095
The above rates are based on an 80% LVR loan of $300,000 to owner occupiers over a 25 year term as at 15/10/15. Source: Mozo.com.au

Mozo’s top refinancing tips

It’s clear there are savings to be had by shopping around on your current home loan rate but remember to follow these rules of thumb when refinancing.

- While it’s tempting to switch to a lower variable rate, research whether the new lender offers consistently low rates 

- Weigh up whether your savings by switching will pay for the costs associated with refinancing (e.g discharge fees and any upfront charges) within the first 12 months

- Consider a fixed rate , they’re at all time lows and with rate rises looming, it could be a good time to lock in a consistent low rate

*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.

**Initial monthly repayment figures are estimates only, based on the advertised rate, loan amount and term entered. 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.

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