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Mozo live blog: The RBA has cut the cash rate by 0.25% at its February meeting, bringing it down to 4.10%. Follow today’s interest rates news and insights from our team on our interest rates live blog.
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The Mozo database tracks 417 home loans from 95 Australian lenders, so you can compare rates, fees and home loan features side-by-side.
We have spent our days keeping tabs on rates, crunching numbers, and breaking down bank jargon to provide you with practical tips, breaking news and expert analysis since 2008.
We’re regulated by ASIC and are committed to bringing you a free service. You can search all providers in our database regardless of whether we get paid or not.
Mozo’s team of home loan experts include data analysts, finance journalists and compliance professionals. Meet the team
Following the Reserve Bank of Australia’s (RBA) decision to cut the cash rate, home loan interest rates have been on the move.
Each of the Big Four banks announced they would be cutting their variable rates by 0.25% p.a. – ANZ, Commonwealth Bank and NAB reduced their variable rates on 28 February, while Westpac’s 0.25% cut is effective from 4 March.
There have been many more rate cuts outside of the major players, including ANZ Plus, Bankwest, Macquarie, Suncorp and Unloan to name a few. For a more complete list, you can take a look at our RBA interest rate tracker.
More lenders will be passing on the 0.25% cut in the first week of March, which gives current mortgage holders and first-time borrowers the chance to get a better home loan interest rate. Current mortgage holders may also want to think about refinancing their home loan.
We’ve put together a table to show how a 0.25% cut can affect your repayments across different loan amounts. You can also see the best home loan interest rates for March in our knowledge hub.
| Average rate (p.a.) | Monthly repayment total | Average rate after cut (p.a.) | Monthly repayment total | Savings earned | |
|---|---|---|---|---|---|
| Variable @ $400,000 and 80% | 6.72% | $3,445.00 | 6.47% | $3,367.00 | $78.00 |
| Variable @ $500,000 and 80% | 6.71% | $3,442.00 | 6.46% | $3,364.00 | $78.00 |
| Source: Mozo database as at 27 February 2025, average variable home loan vs average variable rate after RBA cut for owner occupier, principal & interest home loans at $400,000 and $500,000, at 80% LVR. | |||||
For those looking for the best rates right now, see our round-up of the lowest home loan rates for this month below.
According to the Mozo database on 5 March 2025, the best home loan interest rates for owner occupiers with a 20% deposit (80% LVR), making principal & interest repayments on a $400k loan are:
Small interest rate differences can amount to huge savings over time.
The graph below illustrates how lower rates can translate to interest savings, using the example of an $800,000 mortgage, with a 25-year term.
At 6.50% p.a., you would end up paying $820,497 in interest alone. In other words, you'd pay back your principal loan amount of $800,000 and pay an additional $820,497 in interest – that's over $1.6 million all up.
Comparing the 6.00% and 6.50% interest rate examples above, a difference of just 0.50% could save you almost $250 per month, or over $74,000 over the span of 25 years.
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In Australia, home loans are available from a wide range of lenders including the Big Four, customer-owned banks, credit unions and non-bank lenders.
The Big Four banks (ANZ, CommBank, NAB, and Westpac) however dominate the home loan market. Despite their popularity, Big Four home loans tend to have higher rates than the competition.
Compared to the average variable rate in the Mozo database, a borrower with an $800,000 home loan could spend an extra $219 per month, or $65,660 over 25 years with a Big Four, as illustrated below. This is why it’s important to shop around and compare home loans before you commit to any one lender.
| Type | Average interest rate | Monthly repayment | Total repayment (25 years) |
| Big Four variable | 7.15% p.a. | $5,731 | $919,304 |
| All variable rates | 6.72% p.a. | $5,512 | $853,644 |
| Source: Mozo database, 1 February 2025. Interest rates based on a $400,000 owner-occupier variable home loan, with principal and interest repayments and <80% LVR over 25 years. Calculations based on a loan of $800,000. | |||
There are several factors that influence home loan rates in Australia. Competition between lenders and inflation are among the culprits, but recently the biggest influence on interest rates has come from the Reserve Bank of Australia (RBA).
To control inflation, the RBA manipulates the cash rate. When the cash rate is raised, interest rates tend to increase in response. This usually results in less spending by consumers and the eventual easing of inflation.
Over the past few years, the RBA cash rate has increased by 4.25% and this has pushed up interest rates on home loans as banks and lenders responded.
In April 2022, the cash rate was at just 0.10%, and the average variable home loan was 3.03% p.a. By November 2023, the cash rate had risen to 4.35%.
While the RBA hasn’t raised rates since then, the average variable rate has doubled which has put a lot of pressure on mortgage holders. As at 1 February 2025, the average variable home loan rate is now 6.72% p.a. according to the Mozo Database (based on OO, P&I, $400k, <80% LVR loan).
Each year we conduct a review of every home loan in our database for the Mozo Experts Choice Home Loan Awards.
We run a number of scenarios across 10 categories to find the home loans that deliver the best value for Australian borrowers.
Out of the 444 home loans from 97 lenders we compared for this year’s awards, Tiimely Home came out on top and has been named Australia’s Best Home Lender.
We also award providers across a range of other categories including:
To view the full list of winners, click the button below, or read our awards criteria in the methodology report.
Our expert guides will give you the knowledge you need to manage your mortgage from search to settlement. See all
Get the latest on property market trends, interest rates, and lending news from Mozo's expert writers. See all
Financial jargon can be confusing. Check out our home loan glossary to familiarise yourself with common terms and compare home loans with confidence.
A home loan is an amount of money that you borrow to finance the purchase of a property.
A home loan works in a similar way to any other loan. You borrow an amount of money to fund the purchase of a property or land and you pay that money back (principal), plus interest, over a period of time.
There are a range of different factors that determine the repayment amount.
There are two types of home loans: owner-occupied and investment home loans.
Looking to see if you can switch and save, fix your rate, or finance an investment property purchase?
How much a home loan lender lets you borrow will depend on several factors, including:
You can use a borrowing power calculator to estimate the amount of money a lender may let you borrow based on your income, your expenses, and other debts you might have.
Crunch the numbers with our range of handy home loan calculators! See all calculators
Using a home loan comparison service like Mozo means you can compare a wide variety of options quickly, easily, and for free.
When you compare home loans, ask yourself the following questions:
These questions can help point you in the right direction and make it easier for you to decide on the right home loan for you.
The standard deposit in Australia is 20% of the value of a property. Although, it is possible to buy a home with a deposit of less than 20% by using government schemes, such as the First Home Guarantee scheme, and by opting for a low-deposit home loan.
The interest on your home loan is calculated daily, based on your outstanding balance.
Your lender will multiply your loan balance by your interest rate, then divide that number by 365 days to find your daily interest amount. They will then add all of your daily interest charges together for the month, which you will pay for as part of your mortgage repayment.
If you make weekly or fortnightly payments, it follows that you’ll pay the accumulated daily interest for the week or fortnight.
Read our guide on calculating interest on a loan for more information.
Home loan interest is not tax-deductible for owner-occupiers. However, property investors can claim interest as a tax deduction if they have an investment home loan.
An offset account is a transaction account that allows you to reduce how much interest you’re charged. You won’t pay interest on your loan balance equal to the amount of money you hold in your offset account.
For example, if you have a $500,000 home loan debt and $50,000 in your offset account, your home loan interest will be calculated on just $450,000.
Read our guide on how offset accounts work for more information.
The right time to refinance will be different for each individual’s circumstance but we recommend that you review home loan offers at least every two years to make sure that your home loan remains competitive.
If you stand to save money by refinancing, it’s a good idea. This means weighing up the risks and the costs of refinancing compared to sticking with your current home loan, and judging for yourself if it’s the right move.
The process of applying for a home loan involves working out how much you can borrow, saving up for a deposit, comparing home loan options, getting pre-approval from a lender, and gathering all of your documents to submit as part of your application.
LVR stands for loan-to-value ratio. This is the amount you borrow, expressed as a percentage of the value of the property you buy.
When you first apply for a loan, your LVR is determined by your deposit size. The higher your deposit is, the lower your LVR will be.
But your LVR can also change over time, as you pay off more of your home loan, or as your property value goes up and down.
Lenders Mortgage Insurance (LMI) is an insurance product designed to protect your lender financially if you default on your home loan. You are usually required to pay for LMI if you apply for a home loan with a loan-to-value ratio (LVR) over 80%. This is because borrowers with high LVRs present more risk to the bank.
Having student loan debt won’t stop you from getting a home loan. However, as with any liability you have, a HECS-HELP debt will diminish your borrowing power and mortgage serviceability.
This is because the income you would otherwise have to spend on mortgage repayments is being taken up by your other financial obligations. This is a potential red flag for lenders when assessing if you’re a good fit for their product.
To work out what home loan you can afford, plug your income and expenses into a borrowing power calculator. You’ll get an estimate how much you might be able to borrow from a lender at different interest rates and how much your borrowing power changes by eliminating other expenses.
Head over to our home loan FAQs page for the answers. View
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I have had many homeloans over my time, and to be honest, Me Bank was my first 'non-traditional' bank (not one of the big 4 or associates)... but from signing up day one I had concerns. Communication is poor with this bank. Staff don't tell you 'everything' and for instance, fee and charges are hidden until sign-on has occurred. When I had questions, I would be referred to other departments, people etc who wouldn't return my calls. Eventually, you just gave up... The disappointing this is their "Members Package".... its $395 a year to have an interest rate comparative to other banks.... or if you don't take this offer, its 2% higher (YES... 2%.... mine was 6.09%, I refused to pay the ridiculous Members fee, and they pushed my homeloan interest rate up to 8.53%... So with that... Im out. DO NOT USE THIS BANK... they are dodgy, misleading, and only in it for the profits (like many others)...
Read full reviewI have had many homeloans over my time, and to be honest, Me Bank was my first 'non-traditional' bank (not one of the big 4 or associates)... but from signing up day one I had concerns. Communication is poor with this bank. Staff don't tell you 'everything' and for instance, fee and charges are hidden until sign-on has occurred. When I had questions, I would be referred to other departments, people etc who wouldn't return my calls. Eventually, you just gave up... The disappointing this is their "Members Package".... its $395 a year to have an interest rate comparative to other banks.... or if you don't take this offer, its 2% higher (YES... 2%.... mine was 6.09%, I refused to pay the ridiculous Members fee, and they pushed my homeloan interest rate up to 8.53%... So with that... Im out. DO NOT USE THIS BANK... they are dodgy, misleading, and only in it for the profits (like many others)...
have a home loan paid out in a 2 0 10 and been very happy with the loan
Read full reviewhave a home loan paid out in a 2 0 10 and been very happy with the loan
Their customer service is good, I always get a swift response and my original loan application was approved within 48 hours. you get an instant alert every time money is deposited in your bank which I find helpful. The online platform can sometimes be a little tricky to access with extra security measures, but this does make you feel like your money is secure. The yearly service fees are quite high.
Read full reviewTheir customer service is good, I always get a swift response and my original loan application was approved within 48 hours. you get an instant alert every time money is deposited in your bank which I find helpful. The online platform can sometimes be a little tricky to access with extra security measures, but this does make you feel like your money is secure. The yearly service fees are quite high.
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