Orange Credit Union now offers one of the lowest home loan rates on the market

By Maria Gil · · 2 min read
Fact Checked
Advertiser disclosure
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Orange Credit Union's newest variable home loan product is 156 basis points (bp) below the average variable home loan rate for owner occupiers, according to Mozo’s database. 

The Essential Low Rate Variable Loan’s introductory variable rate starts at 1.58% p.a. (2.72% p.a. comparison rate*) owner-occupier and investors with a  loan-to-value ratio of 95%. Then after the first 24 months, the rate will increase to 2.89% p.a. (2.72% p.a. comparison rate*) which is a bit high compared to some other available home loans.

Essential Low Rate Variable Loan features to look at:

  • Minimum borrowing amount of $350,000
  • No redraw facilities
  • No offset account
  • Free extra repayments
  • Upfront fee of $865

This ultra-low home loan might be ideal for first time home buyers or potential investors who want to break into the property market.

How do these new Orange Credit Union rates compare?

For starters, Orange Credit Union’s Essential Low Rate Variable Loan is currently the lowest available variable interest rate home loan on Mozo’s database. The average variable rate home loan in our database is at 3.14%, making Orange Credit Union’s loan to be 156 bp below our average. The next lowest variable rate is 1.99%, making it 115 bp below the average. 

While Orange Credit Union is the lowest rate in Mozo database, it is important to remember that the 1.58% p.a. (2.72% p.a. comparison rate*) is an introductory rate that will revert back to a much higher variable rate after the 24 months are over.

The average home loan life is 25 years, and you’d only be getting the low rate for two of those years. You also need to remember that this is a variable rate, meaning that the introductory rate and the reverted rate could change at any time. If you prefer to have a loan with a repayment certainty, a fixed rate loan like the Orange Credit Union Essential Fixed Rate Home Loan might be a better fit.

If you’re looking to buy property soon, check Mozo’s home loan comparison hub to find which loan is right for you.

Home loan comparisons on Mozo - last updated 16 April 2024

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

    Owner Occupier, Principal & Interest, LVR <90%

    interest rate
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    6.01% p.a. variable
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    Get fast 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.

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    Unloan Variable

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    interest rate
    comparison rate
    Initial monthly repayment
    5.99% p.a. variable
    5.90% p.a.

    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.

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* 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.

^See information about the Mozo Experts Choice Home Loan Awards

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.

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