Borrowers abandon banks after RBA rate hike shock

The Reserve Bank’s first official rate hike in more than 11 years has galvanized Australian borrowers into action, with thousands flocking to comparison sites in recent days to seek bargain mortgage deals .

Interest in cheaper home loans is skyrocketing, putting big banks under pressure to keep their customers. Although banks are already responding by passing on higher rates to variable home loan customers, fierce competition from online lenders and challengers means rates around 2.00% are still available.

Mozo Money expert Tom Godfrey said, “Savvy borrowers could save tens of thousands of dollars on their home loan by taking the opportunity to shop around and switch. Given the savings on offer, it’s no surprise that we’re seeing a shift of challenger lenders away from the big four banks.

With an average variable mortgage rate of 3.05%, there is a huge gap between the best and worst mortgage rates available. Start by comparing some of the best rates of the month on the market below….

TOP HOUSING LOAN OFFERS MAY 2022

Macquarie – Compensatory Home Loan
  • Variable rates from just 2.14% (2.42% comparison rate*) – 40% minimum deposit
  • 100% clearing account, ease of withdrawal and additional refunds
  • No upfront fee ($248 annual plan fee applies)

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

Greater Bank – Low Rate Fixed Rate Home Loan
  • Fixed rate of 2.59% for 1 year (comparative rate of 2.23%*)
  • Mozo Experts Choice Awards – 2022 Home Lending Bank of the Year^
  • Borrow with only 10% down payment

The details:
With an ultra-low 1-year fixed rate and no ongoing charges, this competitive fixed-rate home loan from Greater Bank is a great option for borrowers looking to secure repayment certainty on their home loan and protect against future upsurges. rate. It is available with only a 10% deposit and a guarantor option is available. NSW, QLD and ACT residents only.

Bank of Queensland – Economical Variable Mortgage Loan
  • 2.13% variable rate (comparison rate 2.30%*)
  • $3,000 Cash Back Bonus for Refinancers – Limited Time Only
  • Available to borrowers with 70% LVR

The details:
BOQ is a favorite of borrowers looking to find value beyond the big four banks, and for good reason. The BOQ Economy Variable Home Loan offers competitive variable rates, free withdrawal, flexible repayment options, and free valuation. Plus, refinancers can get a $3,000 cashback bonus for a limited time only (terms and conditions apply). Apply before May 16.

Nano – Variable real estate loan
  • Variable and comparative rate of 1.99%*
  • Free clearing account + zero upfront or ongoing fees
  • Mozo Experts Choice Best New Home Loan of 2022 ^

The details:
Digital lender Nano has launched what it claims to be the fastest home loans in the world, with an all-digital approval process that they claim can see you approved in as little as 10 minutes. Buyers and refinancers will benefit from an ultra-low variable rate, zero Nano fees, and a wide range of flexible features, including unlimited additional repayments, a free new draw, and a 100% free clearing account.

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

*
ATTENTION: This comparison rate only applies to the example or examples given. Different amounts and durations will result in different comparison rates. Costs such as withdrawal charges or prepayment charges, 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 shown is for a secured loan with monthly principal and interest repayments of $150,000 over 25 years.

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

^ See Mozo Experts Choice Home Loan Awards information

Mozo provides general product information. We do not take into account your personal goals, financial situation or needs and we do not recommend any particular product. You must make your own decision after reading the PDS or offering literature, or after seeking independent advice.

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

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