Borrowers exit banks after shock RBA rate hike

The Reserve Bank’s first official rate hike in over 11 years has spurred Australia’s home borrowers into action, with thousands flocking to comparison sites in recent days to seek bargain home equity deals.

Interest in cheaper home loans is skyrocketing, putting pressure on big banks to keep their customers. Although banks are already responding by passing on the rate hike to adjustable home loan customers, stiff competition from online and challenger lenders means rates around the 2.00% mark are still available.

Mozo money expert Tom Godfrey said: “Savvy borrowers could save tens of thousands on their home loan by taking the opportunity to shop around and switch. Given the savings on offer, it’s hardly surprising that we’re seeing a shift toward challenging lenders, away from the big four banks.”

Since the average variable interest rate on home loans is 3.05%, there is a large gap between the best and worst available home loan rates. Start comparing some of this month’s top prices in the market below…


Macquarie – Home Equity Loan
  • Variable interest rates from just 2.14% (2.42% comparable rate*) – minimum deposit 40%
  • 100% compensation account, redraw opportunity and additional paybacks
  • No upfront fees ($248 annual package fee)

The details:
Macquarie is now Australia’s fifth largest home lender and with deals like this it’s not hard to see why. The Macquarie Offset Home Loan now has even lower variable rates along with a range of flexible features such as 100% offset (up to 10 free offset accounts per loan account), free additional repayments and online redrawing, and a split account option. To start the easy application process, simply request a call on the Macquarie website. Available for loans up to $5 million.

Greater Bank – Affordable home loan with a fixed rate
  • 2.59% fixed rate for 1 year (2.23% comparable rate*)
  • Mozo Experts Choice Awards – House Bank of the Year 2022^
  • Rent with only 10% down payment

The details:
With an extremely low 1-year fixed rate and no ongoing fees, this competitively priced Greater Bank Term Loan is a great option for borrowers looking for security on home loan repayments and protection from future interest rate increases. It is available with just a 10% deposit and a guarantee option is available. NSW, QLD and ACT residents only.

Bank of Queensland – Economy Variable Home Loan
  • 2.13% variable interest rate (2.30% comparable interest rate*)
  • Bonus $3,000 cashback for refinancers – for a limited time only
  • Available to borrowers with 70% LVR

The details:
BOQ is a favorite with borrowers looking for value beyond the big four, and with good reason. The BOQ Economy Variable Home Loan offers competitive variable interest rates, free redraws, flexible repayment options, and a free appraisal. Also, for a limited time only, refinancers can receive a $3,000 bonus cashback (T&Cs apply). Apply by May 16th.

Nano – Variable Home Loan
  • 1.99% variable and comparison rate*
  • Free settlement account + no upfront payment or ongoing fees
  • Mozo Experts Choice Best New Home Loan of 2022^

The details:
Digital lender Nano has launched what they claim to be the world’s fastest home loans, with an all-digital approval process that they say can get you approved in as little as 10 minutes. Both buyers and refinancers enjoy an extremely low variable interest rate, zero nano fees and a wide range of flexible features including unlimited additional repayments, free redraws and a free 100% offset account.

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Want to compare other home loans? Check out the latest mortgage rates from over 80 lenders at Mozo’s Home Loan Comparison Center.

WARNING: This rate of comparison applies only to the example or examples provided. Different amounts and maturities lead to different comparison rates. Costs such as redemption fees or prepayment penalties and cost savings such as fee waivers are not included in the comparison rate, but may affect borrowing costs. The comparative rate shown is for a secured loan with monthly principal and interest payments of $150,000 over 25 years.

The initial monthly repayment numbers are estimates only, based on the advertised interest rate, loan amount, and entered term. Rates, fees and charges, and therefore the total cost of the loan, may vary depending on the loan amount, loan term and credit history. Actual repayments will depend on your individual circumstances and changes in interest rates.

^See information on the Mozo Experts Choice Home Loan Awards

Mozo provides general product information. We do not consider your personal goals, financial situation or needs, and we do not recommend any particular product. You should make your own decision after reviewing the PDS or offering documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we do not cover every product on the market. If you decide to apply for a product through our website, you are dealing directly with the supplier of that product and not with Mozo.

About Meredith Campagna

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