This week in banking - Home loan competition heats up

By Niko Iliakis · · 6 min read
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Your banking recap is back for a rundown of the biggest news and most significant changes in Australian banking from the past week.

Loans.com.au now a major contender in the home loan market

Online lenders are having a bit of a moment right now. Last week Athena Home Loans launched onto the scene with maximum fanfare, promising to swoop in and rescue Australians from their inordinately priced home loans.

This week it looks like loans.com.au might be trying to steal a bit of Athena’s thunder. It’s just rolled out its own low rate home loan at a 3.48% variable rate (3.50% comparison rate*). The kicker? That’s one percentage point lower than Athena’s starting offer. How’s that for throwing down the gauntlet?

Powershop kicks things off in SA

Powershop, the energy provider on a mission to power Aussie homes with renewable energy, has finally entered the South Australian market, and given SA’s green energy obsession you could say it was only a matter of time.

And for anyone’s who’s on the fence about joining (as if helping the environment wasn’t incentive enough), Powershop has announced that Australians who sign up for Powershop before March 31 will receive a $100 discount on their power every year.

RBA delays rate change for yet another round

In national news, the RBA has once again held off on changing the cash rate, citing a desire to preserve economic growth and keep both unemployment and inflation at bay. Nonetheless, change is in the cards for the near future. Mozo Data Manager Peter Marshall believes that we’ll see not one but two cuts by the end of the year.

“I still don’t think the RBA’s going to rush into anything though - it’s not their style. They don’t have many cuts left in the bank, so they’ll want to apply what they do have left quite judiciously, so I expect that they’ll wait until May or June before making a move.”

Variable home loans

Turning to rates, NAB added some new pricing for its Base Variable Rate Home Loan. The special is now 3.79% (3.83% comparison rate*) for loans with an LVR below 80%, and 3.99% (4.03% comparison rate*) for loans with an LVR of 80-95%.

Kogan Money reduced variable rates for its Essential Home Loan for owner occupiers by 0.10%. It now sits at 3.59% (3.60% comparison rate*). AMP, on the other hand, has hiked rates for its Classic Variable Rate Loan, Essential Home Loan and more by 0.15%.

Fixed home loans

Virgin Money has introduced a new home loan to its lineup. The Reward Me First Home Buyer Special offers a competitive 3.68% fixed two year rate (3.77% comparison rate*), and borrowers stand to gain loads of Velocity Points upon application as well as throughout the loan.

Hume Bank made multiple cuts to its range of home loans, with 1 to 5 year rates for owner occupiers all dropping 0.10%. NAB also made a number of reductions, mostly in the 0.10% to 0.20% range, to its Tailored Home Loan and Tailored Home Loan Choice Package.

Elsewhere, Teachers Mutual Bank made sizeable reductions to its Fixed Option Home Loan. The 4 year and 5 year fixed rates were slashed 0.37% and 0.50%, respectively. Unibank also decreased its 3, 4 and 5 year Fixed Option Home Loans by 0.10% to 0.50%.

Qudos Bank has dropped fixed rates by 0.10% across a wide range of its home loans. The main change occurred at the 5 year range for its Fixed Rate Home Loan, which now sits at 3.99% p.a. (4.14% comparison rate*) after a 0.20% reduction.

Term deposits

While the window to grab a decent term deposit is still technically open, it’s closing fast. This week saw several more cuts across the board. First off, NAB dropped its 2, 3, 4 and 5 year rates by 0.10%. Rural Bank also made cuts of 0.10% to its 1, 3, 4 and 5 year rates, and Rural Bank ONE did the same for its 6 month and 1 year rate. Meanwhile, the Mutual Bank (formerly Maitland Mutual Building Society) cut rates for its 5 month term by 0.40%. It now sits at 2.00% p.a.

But there’s no need to despair just yet. A good way to ride out the current dip is by stashing your funds in longer term deposits, which for the most part have been immune to the latest string of cuts. Check out our term deposit comparison page for an idea of the kind of rates available.

Home loan comparisons on Mozo

Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can compare more home loans here.
Last updated 27 July 2024 Important disclosures and comparison rate warning*

Promoted

  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

  • Basic Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.

  • Neat Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.11 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.

  • Special Real Deal Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <80%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.13 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    Refinancers or first home buyers pay no monthly or annual fees. Up to $3,000 cashback when you complete your home loan application online. $2,000 cashback on loans ≥$250K; or $3,000 cashback on loans ≥$500K. LVR ≤80%. T&Cs and credit criteria apply.

  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

  • OMG Home Loan

    • Owner Occupier
    • Principal & Interest
    • <60% LVR
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    6.02 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    BCU Bank’s OMG owner occupied home loan offers a variety of great low rates depending on your deposit. Save with no ongoing annual fees. Access your extra payments when you need to through the redraw facility. Pre-approval valid for 3 months.

  • Express Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <90%
    Interest rate
    6.01 % p.a.
    Variable
    Comparison rate
    6.14 % p.a.
    Initial monthly repayment
    $3,001
    Go to site

    Get online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.

  • Neat Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.11 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.

  • Special Real Deal Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <80%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.13 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    Refinancers or first home buyers pay no monthly or annual fees. Up to $3,000 cashback when you complete your home loan application online. $2,000 cashback on loans ≥$250K; or $3,000 cashback on loans ≥$500K. LVR ≤80%. T&Cs and credit criteria apply.

  • Basic Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.

  • Flex Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.38 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Competitive variable rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.

  • Offset Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.39 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.

image of houses

Need help with refinancing?

You might have questions that need personal answers. We’ve teamed up with the mortgage brokers at Lendi to get you the answers you need, and a home loan deal you deserve.

Learn more


*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.

* 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. You can change the loan amount and term in the input boxes at the top of this table. 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.

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.