A survey from Mortgage Choice found only 46.5% of respondents knew their current home loan interest rate, down from 71% in 2016 and 60% in 2018. 

Despite this complacenecy, many respondents said COVID-19 had put them under increased financial pressure.

Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Lender

VariableMore details
Online ExclusiveUp To $4K Cashback
  • Immediate cashback upon settlement
  • $2,000 for loans up to $700,000
  • $4,000 for loans over $700,000
Online ExclusiveUp To $4K Cashback

loans.com.au – Variable Basic Cashback Home Loan (Principal and Interest) (LVR < 70%)

  • Immediate cashback upon settlement
  • $2,000 for loans up to $700,000
  • $4,000 for loans over $700,000
VariableMore details
Refinance OnlyApply In Minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Refinance OnlyApply In Minutes

Unloan – Variable Rate Home Loan – Refinance Only

  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
VariableMore details
Unlimited Redraws
  • No annual fees - None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
  • Redraw freely - Access your additional payments when you need them
  • Home loan specialists available today
Unlimited Redraws

ubank – Neat Variable Home Loan (Principal and Interest) (LVR < 60%)

  • No annual fees - None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
  • Redraw freely - Access your additional payments when you need them
  • Home loan specialists available today
VariableMore details
Unlimited RedrawsApply In Minutes
  • Low Deposit (<95% LVR) with No LMI required
  • Unlimited Redraw and additional repayments
  • No Application or ongoing fees
Unlimited RedrawsApply In Minutes

Sucasa – Ultra Low Rate (Variable) - <95% LVR - No LMI (New Purchases)

  • Low Deposit (<95% LVR) with No LMI required
  • Unlimited Redraw and additional repayments
  • No Application or ongoing fees
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of February 21, 2024. View disclaimer.

Over 62% of people said the pandemic had caused them to worry more about money, with 65.6% trying to boost their resilience by saving more, spending less and improving their financial knowledge.

Chief Executive Officer at Mortgage Choice Susan Mitchell said borrowers could put more money in their pockets simply by knowing their interest rate and looking to improve it. 

"Our research suggests that Australians are more focused than ever on their finances, yet many are being complacent with their biggest expense and potentially biggest saving," Ms Mitchell said.

"There has never been a better or more important time for all Australians to take charge of their financial wellbeing.”

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Source: Mortgage Choice

Borrowers could be forgiven for not knowing their rate, given the Reserve Bank (RBA) has cut rates by 65 basis points in the last year alone, with mixed response from lenders. 

Few lenders passed on the RBA's most recent cut in November to existing variable rate home loans, with many instead taking the knife to fixed rates, offering sub 2% fixed loans. 

Asked how often they reviewed their home loan, 13.7% of survey respondents said never, 44.4% said every couple of years, and 41.9% said annually. 

Ms Mitchell urged borrowers who hadn't reviewed their home loan in the last two years to speak to their broker or lender to negotiate a lower interest rate. 

"Let's say your principal and interest rate is 3.99% and shopping around with the help of a mortgage broker enables you to drop by 50 basis points to 3.49%.

"On a 30-year home loan of $600,000, the savings could be in the vicinity of $170 a month."

Homeowners aged 30 to 39 were the most likely to not know their interest rate (64.5%), with those aged 50 to 59 years close behind at 56.4%.

"It's so important to know your interest rate because if you’ve been complacent the chances that you are paying too much are extremely high," Ms Mitchell said.

"Every Australian should make it a New Year resolution to review their home loan."

With the Reserve Bank stating the cash rate will remain unchanged for at least three years, given the forecasted long and uneven recovery from COVID, there is unlikely to be the wealth of rate cuts from lenders seen in the last year. 

Attention has turned to fixed rates, and there is speculation the big four will claw back market share lost to non-banks and neobanks.

Among the lures enticing borrowers to switch lenders are cashback offers, which are more likely to be offered by bigger institutions taking advantage of the RBA's term funding facility.

Photo by Gabrielle Henderson on Unsplash





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