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 spring 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.
Macquarie has cut its owner occupier variable rates by 15 basis points and UBank has released new record low discounted variable and fixed rates on its popular UHomeLoan. These moves follow hot on the heels of HSBC, which became the first major bank in the Mozo database to offer a variable rate as low as 2.19% (2.20% comparison rate*) for borrowers with 30% deposit or equity.
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 LENDER RATES OCTOBER 2021
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 1.85% fixed rate for 3 years (2.13% comparison rate*)
Free extra repayments up to $20,000 during the fixed term
3 year fixed home loan rates don’t get any lower than this stellar new offer from UBank. Owner-occupier borrowers will be able to grab this rate on loans between $100,000 and $2,000,000 and have the upfront $395 rate lock fee waived, for a limited time. What's more, there are no other upfront or ongoing fees to worry about and UBank even lets customers make extra repayments towards the loan of up to $20k during the fixed term, for free!
HSBC Discounted Home Value Loan
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 - limited time only
HBSC became 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.
loans.com.au Smart Booster Home Loan
1.85% discount variable rate for 2 years
Rolls over to low ongoing 2.25% (2.21% comparison rate*)
No monthly fees plus unlimited free redraws and extra repayments
This low rate, low fee home loan could help you save thousands on your mortgage and is packed with useful features like unlimited free extra repayments and redraw, multiple loan split options and an optional offset account for 0.10%. With all this on offer the Smart Booster Home Loan really is a smart choice for borrowers who are looking to save money on interest and get mortgage free faster. You can borrow up to $1 million with this loan with a 20% deposit, and pay no ongoing monthly fees.
Nano Variable Home Loan
1.99% variable and comparison rate* (refinancers only)
New digital lender Nano is winning over refinancers with an ultra low 1.99% variable and comparison* rate for borrowers with a 75% LVR, plus unlimited additional repayments, free redraw and even a free 100% offset account. There are no upfront or ongoing service fees to pay and Nano's simple online application makes it easy to apply and refinance in a matter of minutes, not weeks.
*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.