The low rate home loan hit-list: January 2025
With the cost of living continuing to stay high into 2025, there's never been a better time to compare how much you could save on your mortgage repayments by switching to a low rate home loan.
Our analysis reveals that there is a huge difference between the average home loan rate and the lowest in our database. In fact, the average big 4 bank borrower with a $400K owner occupier home loan could save up to $3,792 a year by switching^^.
Mozo compares over 400 home loans from more than 90 lenders, and our experts have done the hard work for you by scouring our database to uncover some top home loan deals in the market right now.
Read on for our Mozo Expert reviews of some of this month's low cost home loans and see how much you could be saving….
Low rate home loans in Australia: January 2025
Unloan - Variable Home Loan
- 5.99% p.a. variable rate (5.90% p.a. comparison rate*)
- Zero upfront or ongoing fees
- Low cost home loan winner - Mozo Experts Choice Awards 2023 & 2024^
Unloan’s Variable Home Loan has taken out a low cost home loan award for the second year running in the Mozo Experts Choice Awards^. Built by CommBank, Unloan offers owner-occupiers a super low 5.99% p.a. variable rate (5.90% p.a. comparison rate*) along with a loyalty discount that shaves 1 basis point off your interest every year for up to 30 years. Loan features include free extra repayments and redraw, and there are no pesky fees to pay. Available for loans of up to $10M. Minimum 20% deposit.
Macquarie Basic Variable Home Loan
- 6.14% and (6.16% comparison rate*)
- Zero application or ongoing fees
- Free redraw and extra repayments
With competitive variable interest rates starting at 6.14% p.a. (6.16% p.a. comparison rate*), Macquarie’s Basic Home Loan brings with it minimal fees and a range of features like free extra repayments and a free redraw facility. Together with a split account option so you can split your loan between variable and fixed, the Basic Home Loan from Macquarie is available to owner occupiers and investors alike. 30% deposit required.
loans.com.au Variable Home Loan 90
- 6.04% p.a. (6.08% p.a. comparison rate*)
- No application fees to pay
- Optional offset available for additional 0.10%p.a. interest rate loading
If you're in the market for a competitive rate on a variable home loan, online lender loans.com.au has come through with the goods. There are no application fees to pay and you only require a 10% deposit to get started. You can borrow between $50,000 to $2,000,000, plus, you’ll have the freedom to make free extra repayments, and redraw them without penalty too. $300 settlement fee applies. (T&Cs apply).
Newcastle Permanent - Real Deal Home Loan
- 5.99% variable rate (6.03% comparison rate*) for borrowing up to 80% loan to value ratio
- Free extra repayments
- Get up to $3,000 cashback by applying for a new purchase or refinancing online
Featuring a competitive interest rate and no ongoing service fees, the Newcastle Permanent Real Deal Home Loan is just that: the real deal. Not only is it easy on the wallet, but this loan also comes with features like the option to make free extra repayments, split your loan between fixed and variable rates and use a partial offset account. Plus, you could get up to $3,000 cashback by applying for a new purchase or refinancing online, if approved.
IMB Bank Budget Home Loan
- 6.04% p.a. variable rate (6.07% p.a. comparison rate*) for borrowing up to 80% loan to value ratio
- Up to $4,000 cashback (T&Cs apply)
- Unrestricted additional repayments
Enjoy the benefits of a discounted variable home loan from IMB and score up to $4,000 cashback in your pocket once approved (T&Cs apply). You’ll get a Life-of-loan discount off IMB’s standard variable interest rate and the ability to make unrestricted additional repayments to pay your mortgage off sooner. Make free Internet and Mobile Banking redraws (T&Cs apply) and pay no monthly fees on a flexible loan term of up to 30 years. No offset account.
Fixed Rate Deals
IMB Bank 2 year Fixed Rate Home Loan
- 5.69% p.a. 2 year fixed rate (6.28% p.a. comparison rate*)
- Up to $4,000 cashback (T&Cs apply)
- Free Internet and Mobile Banking redraws
Get the peace of mind of a competitive fixed rate home loan for 2 years with IMB and score up to $4,000 cashback in your pocket once approved (T&Cs apply). You have the freedom to make up to 12 months repayments in advance without penalties, plus you’ll have free Internet and Mobile Banking redraws (T&Cs apply). There’s only a 5% deposit required and you have the flexibility to split your home loan as required. No offset account.
SWS Bank Premium 'Special' Fixed Rate
- Competitive 3 year fixed rate 4.99% p.a. (6.15% p.a. comparison rate*)
- Free redraw
- Available on loans from $800K up to $2.5 million
Lock in a competitive fixed interest rate and enjoy peace of mind for the fixed period with SWS Bank’s Premium Special Fixed Rate Home Loan. Get the flexibility of loan split options and redraw facility. There are no application, ongoing or banking fees to pay and first home buyers and refinancers can apply with a 20% deposit and a speedy online application. No offset account. 800k minimum loan up to $2.5 million. Other fees may be applicable. T&Cs apply.
Calculate your home loan repayments
We can show you the monthly repayment amount for a range of loans
Want to compare more home loans? View the latest mortgage rates from over 80 lenders at Mozo's home loan comparison hub.
^^ Based on the Mozo database, an average big four variable rate of 7.15% p.a. vs leading variable rate of 5.89% p.a., a loan amount of $400,000, loan to value ratio (LVR) of 80%, a 25 year term, Principal & Interest loan, as at 9th of Jan 2025.
* 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.
While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.