In positive news for Australian home borrowers and refinancers this month, fierce competition amongst lenders has seen the average variable home loan rate drop to a new low of 3.14%.
A mortgage war has erupted amongst rival lenders, driving the continuing downwards trend in variable rates and resulting in a bonanza of jaw-dropping new variable home loan offers for savvy borrowers.
HSBC became the first major bank to offer a variable rate as low as 2.19% (2.20% comparison rate*) for borrowers with 30% deposit or equity, while Macquarie has just cut its owner occupier variable rates by 15 basis points. Popular online lenders loans.com.au and Athena have also been making headlines with new low variable rates for borrowers with low LVRs.
So, if you'd like to take advantage of the latest rate cuts to snap up a killer new home loan deal, read on for the Mozo Editor’s rundown of these stellar new offers.
NEW RIVAL BANK VARIABLE RATES
HSBC Discounted Home Value Loan
New 2.19% variable rate (2.20% comparison rate*) for borrowers with 70% LVR
Enjoy free extra repayments, online redraw and no ongoing fees
$3,288 cashback for refinancers - Apply by 30 September
HBSC is the first major bank in the Mozo comparison database to introduce a variable home loan rate this low for borrowers with 30% deposit or equity. The loan comes with all of the features you'd expect from a bank, including free extra repayments, a free online redraw facility, an optional split account and a dedicated relationship manager to guide you through the application process. And if you're refinancing $250,000 or more to HSBC, you can enjoy a generous $3,288 cashback for a limited time.
Macquarie Basic Home Loan
Rates starting from just 2.14% variable and comparison rate* (minimum 40% deposit)
Macquarie is now Australia’s 5th largest home lender, and with offerings like this it’s not hard to see why. The Macquarie Basic Home Loan now has even lower variable rates, plus zero upfront or ongoing fees and a range of flexible features such as free extra repayments, a free redraw facility and a split account option. To start the simple application process, simply request a call on the Macquarie website. Available for loans of up to $5 million.
NEW ONLINE LENDER VARIABLE RATES
loans.com.au Smart Booster Home Loan
New 1.85% discounted variable rate for 2 years
Rolls over to low ongoing 2.25% (2.21% comparison rate*)
Popular online lender loans.com.au is a perennial award winner, and with offerings like the Smart Booster Home Loan it's not hard to see why. This low rate, low fee home loan is packed with useful features like unlimited extra repayments, free redraws and an optional offset account to boost your savings. With all this value on offer and no pesky ongoing fees to boot, this loan is a must-see. Minimum 20% deposit required.
Athena Celebrate Variable Home Loan
New 1.99% variable and comparison rate*
Zero Athena fees + free extra repayments and redraw
The Athena Variable Home Loan is one of the best value home loans to hit the market for borrowers with at least 40% deposit or equity. This mortgage features a killer variable rate that stays great from start to finish and zero upfront or ongoing fees. On top of that, to reward borrowers for paying down their home loan, Athena will now automatically lower your rate as you pay down your loan. Available to home buyers and refinancers buying an established property in a capital or major regional city.
*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.