
Apache is functioning normally

Last month, the Reserve Bank defied expectations with an additional 0.25% hike to the official cash rate. Lenders soon jumped at the opportunity to lift their interest offers on variable home loans – with some outrunning even the RBA with 35 – 50 basis point jumps.
Cashback offers for refinancers have dried up while even introductory rates saw significant rises. Seems lenders are no longer concerned about being competitive: now, it’s all about recouping their costs.
As a result, the average variable interest rate for owner-occupiers making P&I repayments sits at 6.31% p.a. in the Mozo database. Oh, Alexander wept.
Yet there is some good news buoying the sinking house prices: we may be nearing the next rate hold, with many experts predicting a steady cash rate in June and July. While the August RBA meeting remains ‘live’, this could smooth the way for buyers ready to jump into an already warm winter property market.
So have the recent changes reshuffled lenders for June? Let’s break down the numbers.
Fixed rates home loans still point north, though longer terms may wind back

Fixed rate home loans remain hard sells in a tight market, with some shorter terms climbing point by point in the Mozo database. However, some lenders even made significant cuts. Four and five year terms in particular inched backwards, suggesting banks expect rates to smooth over in the long run. Given how high variable rates have soared, some of these offers may even look competitive.
Indeed, locking in your interest rate to ride out the remainder of the rate cycle could be a good way of guaranteeing your repayments for a few years. But with inflation expected to slow by mid-2024, variable rates may unwind sooner than later.
At the time of writing, these are the average fixed rates for owner occupiers with an 80% LVR and a $400,000 loan:
- 1-year: 5.75% p.a.
- 2-year: 5.83% p.a.
- 3-year: 5.87% p.a.
- 4-year: 6.21% p.a.
- 5-year: 6.27% p.a.
Recent home loan rate movements

Sweeping changes hit the home loan market last month. Here are some of the most eye-watering trends.
- Lenders funded by Adelaide and Bendigo Bank, such as Tic:Toc, Mortgage House, Yard, and Qantas Money hit some of their variable rates with increases of 0.30% or more.
- Commonwealth Bank, Westpac, and Suncorp hiked their packaged and welcome rates.
- Cashback for refinancers, no more. Commbank, Westpac, NAB, Suncorp, and ING will officially step back their cashback offers this winter.
All makes the graph more impressive!
Current lowest home loan rates

While offers below 5% are few and far between, there are still some sharp ones available in the Mozo database. Here are the lowest variable and fixed mortgage rates (P&I, LVR <80%) among lenders we track.
Lowest variable rates — Mozo database (1 June 2023)^^
Lender | Loan | Variable rate |
The Mutual Bank | Special Budget Home Loan | 4.94% p.a. (4.95% p.a. comparison rate*) |
Community First Bank | Basic Variable Home Loan Special | 4.95% p.a. (5.00% p.a. comparison rate*) |
Unloan | Unloan Variable | 4.99% p.a. (4.90% p.a. comparison rate*) |
Homeloans360 | Owner Variable Home Loan | 5.04% p.a. (5.04% p.a. comparison rate*) |
Lowest and average fixed rates — Mozo database (1 June 2023)^^
Term | Rate leader | Fixed rate |
1-year | Homestar | 4.99% p.a. (5.77% p.a. comparison rate*) |
2-year | Australian Mutual Bank | 5.23% p.a. (5.92% p.a. comparison rate*) |
3-year | The Capricornian | 4.99% p.a. (6.29% p.a. comparison rate*) |
4-year | HSBC | 5.29% p.a. (5.83%% p.a. comparison rate*) |
5-year | HSBC | 5.29% p.a. (5.81%% p.a. comparison rate*) |
The above are the lowest rates in our database for borrowers with an LVR < 80%. More competitive rates are available for borrowers with lower loan-to-value ratios.
If you’re considering buying property or refinancing your existing mortgage, use Mozo’s home loan comparison table to examine lenders side-by-side, or use our refinance calculator to see how much you could save.
^^Interest rates are based on an owner occupier making principal and interest repayments on a $400,000 loan with an 80% LVR. Check out our dedicated Australian home loan statistics page for more information on average mortgage rates.
Compare home loans
– last updated 3 June 2023
Search promoted home loans below or do a full Mozo database search . Advertiser disclosure
-
Express Home Loan
Owner Occupier, Principal & Interest, LVR <90%
interest rate
comparison rate
Initial monthly repayment
5.47% p.a. variable
5.62% p.a.
Get fast online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.
Compare
Compare
Express Home Loan
Get fast online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.
- interest rate
- 5.47% p.a. variable
- comparison rate
- 5.62% p.a.
- interest rate
- 5.47% p.a. variable
- comparison rate
- 5.62% p.a.
- Upfront fees
- $384
- Ongoing fees
- $10.00 monthly
- Discharge Fee
- $350.00
- Extra repayments
- yes – free
- Redraw facility
- yes – free
- Offset account
- yes
- Maximum loan to value ratio
- 90.00%
- minimum borrowing amount
- $5,000
- maximum borrowing amount
- $3,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- –
-
Neat Home Loan
Owner Occupier, Principal & Interest, LVR <60%
interest rate
comparison rate
Initial monthly repayment
5.49% p.a. variable
5.51% p.a.
Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.
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Neat Home Loan
Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.
- interest rate
- 5.49% p.a. variable
- comparison rate
- 5.51% p.a.
- interest rate
- 5.49% p.a. variable
- comparison rate
- 5.51% p.a.
- Upfront fees
- $250
- Ongoing fees
- $0.00
- Discharge Fee
- $300.00
- Extra repayments
- yes – free
- Redraw facility
- yes – free
- Offset account
- no
- Maximum loan to value ratio
- 60.00%
- minimum borrowing amount
- $80,000
- maximum borrowing amount
- $5,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- –
-
Special Real Deal Home Loan
Owner Occupier, Principal & Interest, LVR <80%
interest rate
comparison rate
Initial monthly repayment
5.49% p.a. variable
5.53% p.a.
No application or service fees. Flexibility to choose your repayment schedule ( weekly, fortnightly or monthly). Refinance and get up to $3,000 cashback. $2,000 cashback on loans ≥$250K; bonus $1,000 cashback on loans ≥$500K. Limited time offers extended. T&Cs apply.
Compare
Compare
Special Real Deal Home Loan
No application or service fees. Flexibility to choose your repayment schedule ( weekly, fortnightly or monthly). Refinance and get up to $3,000 cashback. $2,000 cashback on loans ≥$250K; bonus $1,000 cashback on loans ≥$500K. Limited time offers extended. T&Cs apply.
- interest rate
- 5.49% p.a. variable
- comparison rate
- 5.53% p.a.
- interest rate
- 5.49% p.a. variable
- comparison rate
- 5.53% p.a.
- Upfront fees
- $595
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes – free
- Redraw facility
- yes – fees apply
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- –
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- $3k cashback when you refinance your home loan, >$500k, LVR 90%, apply by 30 June & funded by 31 August 2023. Receive $2k cashback for loans> $250k. First home buyers receive $1k cashback, apply by 30 June & funded by 31 August 2023, LVR 95%,>$500k.
-
Offset Home Loan
Package, Owner Occupier, LVR<60%, Principal & Interest
interest rate
comparison rate
Initial monthly repayment
5.54% p.a. variable
5.79% p.a.
Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.
Compare
Compare
Offset Home Loan
Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.
- interest rate
- 5.54% p.a. variable
- comparison rate
- 5.79% p.a.
- interest rate
- 5.54% p.a. variable
- comparison rate
- 5.79% p.a.
- Upfront fees
- $350
- Ongoing fees
- $248.00 yearly
- Discharge Fee
- $400.00
- Extra repayments
- yes – free
- Redraw facility
- yes – free
- Offset account
- yes
- Maximum loan to value ratio
- 60.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- $10,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly
- Special Offers
- –
-
Solar Home Loan
Owner Occupier, Principal & Interest, LVR <90%
interest rate
comparison rate
Initial monthly repayment
5.39% p.a.variable for 60 months and then 6.23% p.a. variable
5.98% p.a.
Enjoy a lower interest rate for the first 5 years if you have solar panels or plan to get them. Get up to a 30 year loan term. Unlimited additional repayments. Option offset sub-account. No ongoing fees to pay. Free unlimited redraws.
Compare
Compare
Solar Home Loan
Enjoy a lower interest rate for the first 5 years if you have solar panels or plan to get them. Get up to a 30 year loan term. Unlimited additional repayments. Option offset sub-account. No ongoing fees to pay. Free unlimited redraws.
- interest rate
- 5.39% p.a.variable for 60 months and then 6.23% p.a. variable
- comparison rate
- 5.98% p.a.
- interest rate
- 5.39% p.a.variable for 60 months and then 6.23% p.a. variable
- comparison rate
- 5.98% p.a.
- Upfront fees
- $530
- Ongoing fees
- $0.00
- Discharge Fee
- $300.00
- Extra repayments
- yes – free
- Redraw facility
- yes – free
- Offset account
- yes
- Maximum loan to value ratio
- 90.00%
- minimum borrowing amount
- $50,000
- maximum borrowing amount
- $1,500,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- –
*
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.
Source: mozo.com.au