Borrowers dump banks as rivals slash rates

Mozo

10 Jun 2021

Bank signage article image content content

As the property market sizzles and rival lenders slash rates in some of the fiercest mortgage competition we’ve seen in years, borrowers are flocking to comparison sites to hunt out bargain home loan deals.

Interest in cheaper home loans is soaring, putting the big banks under pressure to keep their customers. Competition is particularly fierce on fixed rates, headlined by UBank’s special 1-year rate of 1.75% (2.31% comparison rate*) for borrowers who apply before 30 June. Bank of Queensland also has a super competitive 2-year rate below 1.90%, complete with bonus $3,000 cashback for refinancers.

Meanwhile online lenders like loans.com.au Athena and Yard are rolling out unbelievably low variable rates for refinancers and borrowers with big deposits.

Mozo Money Expert Tom Godfrey said, “Savvy borrowers could save tens of thousands on their home loan by taking the opportunity to shop around and switch.  Given the savings on offer, it's hardly surprising we're seeing a shift to challenger lenders away from the big four banks.”

Top Fixed Rate Home Loans

UBank UHomeLoan
UBank
  • 1.75% fixed rate for 1 year (2.31% comparison rate*) – Apply by 30 June

  • Free extra repayments up to $20,000 p.a.

  • Mozo Experts Choice Best Fixed Rate Home Loan 2021

The details:

UBank is the online bank created by NAB to shake things up in the borrowing and savings world, and boy have they succeeded! Bringing to the table super competitive interest rates, zero upfront or ongoing fees and speedy online processes, it’s little wonder UBank has become such a success story. This ultra low 1 year fixed rate home loan is available for loans of $200,000 or more with a minimum deposit of 20%, but you'll need to be quick - applications must be in by 30 June.

Bank of Queensland Discount Fixed Rate
Bank of Queensland
  • 1.89% fixed rate for 2 years (3.05% comparison rate*)

  • $3,000 cashback for refinancers - Apply by 27 June

  • Free extra repayments up to $5,000 p.a.

The details:

Bank of Queensland is making waves with this super low 2 year fixed rate home loan, which lets you guarantee your monthly repayments while still taking advantage of flexible features like the ability to make free extra repayments up to $5,000 a year and split your loan between fixed and variable. On top of that, refinancers who apply by 27 June will also score a bonus $3000 cashback. Available to borrowers with a 20% deposit or more.

loans.com.au Special Offer Fixed Rate Home Loan
loans.com.au
  • 1.99% fixed rate for 3 years (2.70% comparison rate*)

  • Free extra repayments up to $10,000 per year

  • No monthly or ongoing fees

The details:

loans.com.au has just dropped this cracking fixed home loan special offering savvy borrowers the chance to lock in a sub 2.00% rate for 3 years. You’ll have the ability to make free extra repayments up to $10,000 a year, giving you the security of a fixed rate with the flexibility to pay down your loan faster without penalty. But that's not all, as there are no monthly or ongoing fees to pay and its available to borrowers with 20% deposit for loans of up to $1 million.

Top Variable Home Loans

Athena Celebrate Variable Home Loan
Athena
  • 1.99% variable rate and comparison rate*

  • No application, valuation or ongoing fees

  • Minimum 40% deposit required

The details:

The Celebrate Variable Home Loan from Athena features an incredibly low rate for refinancers and a customer first approach, helping Aussies around the country save money and pay off their mortgages sooner. Plus, to reward borrowers for paying down their home loan, Athena will now automatically lower your rate as you pay down your loan. Available to borrowers with a 40% deposit or equity in their property, this  Athena Home Loan is shaking up the mortgage market.

loans.com.au Smart Booster Home Loan
loans.com.au
  • 1.85% discounted variable rate for 2 years

  • Rolls over to low ongoing 2.25% (2.21% comparison rate*)


  • Optional offset account for 0.10%

The details:

Looking for a loan that's easy on your wallet? Look no further than the Smart Booster Home Loan from popular online lender loans.com.au. This low rate, low fee mortgage is packed with handy features like free extra repayments, unlimited free redraw, an optional offset account and a split rate option. With all this value on offer and no pesky ongoing fees to boot, it's no surprise the Smart Booster took out a Mozo Experts Choice Low Cost Home Loan Award for 2021. Minimum 30% deposit.

Yard Variable Home Loan Special
Yard
  • 2.09% variable rate (2.12% comparison rate*) - Apply by 31 July

  • 100% offset account option + free extra repayments and redraw

  • Available to borrowers with 30% equity in their property

The details:

Looking for a home loan that could save you thousands without having to sacrifice flexible features like an offset account and redraw facility? Look no further than the variable home loan from competitive new online lender Yard. This home loan ticks all the boxes, with an ultra low rate for borrowers with a 70% LVR plus unlimited additional repayments, free redraw, a 100% offset account for an extra $10 a month, and a simple online application that makes it easy to apply.

*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 the amount and term you entered.

**Initial monthly repayment figures are estimates only, based on the advertised rate, and a loan of $500,000 repaid over 25 years. 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.

^See information about the Mozo Experts Choice Home loans Awards

Looking for more options? Head over to our home loan comparison table to compare 500+ home loans from more than 80 lenders.

Calculate your home loan repayments

We can show you the monthly repayment amount for a range of loans

I want to borrow
for years