Smaller lenders with low rates homebuyers should know

By Jack Dona · · 2 min read
Fact Checked
A small model house on a table

The thirteenth Reserve Bank of Australia (RBA) cash rate hike has pushed smaller home loan lenders to raise interest rates in November. So, where do the opportunities lie for borrowers searching for a great rate?

Typically, we see smaller home loan lenders offer lower interest rates than the big banks. Fortunately, according to the Mozo database, that’s still true:

The average owner-occupied variable home loan from the Big 4 (borrowing $400,000 at 80% LVR), sits at a heady 7.21% p.a., at the time of writing. Compare that to the average rate across all of the home loans Mozo compares, at 6.63% p.a., and the pressure lifts a little.

Still, half of the variable home loan interest rates in the Mozo database sit below 6.34% p.a., 0.87% p.a. less than the average Big 4 rate. Hypothetically, this could spell a $220 difference in monthly repayments, helping to significantly shave down your expenses.

Who offers the lowest variable home loan rates right now?

As of 13 November 2023, the lowest variable rates in the Mozo database, for those borrowing $400,000, are:

  • Homeloans360 | Owner Variable Home Loan (Plus, OO, P&I, LVR <80%) | 5.59% p.a. (5.59% p.a. comparison rate*)
  • Pacific Mortgage Group | Standard Variable Home Loan (OO, P&I, LVR 60-80%) | 5.59% p.a. (5.59% p.a. comparison rate*)
  • Police Bank | First Home Loan Variable (OO, P&I, LVR <90%) | 5.59% p.a. (5.67% p.a. comparison rate*).
  • Community First Bank | Basic Variable Home Loan (OO, P&I, LVR <95%) | 5.69% p.a. (5.74% p.a. comparison rate*).
  • Resi | Agility Variable Home Loan (OO, P&I, LVR 70-80%) | 5.69% p.a. (5.74% p.a. comparison rate*).

In fact, the Mozo database counted 102 lenders offering rates below 6% p.a., at a range of loan-to-value ratio (LVR) tiers.

That’s why it’s so important for borrowers to compare home loans – especially when you consider how much money you stand to save just by securing a lower interest rate.

Get started with some of the featured rates below, or check out the best home loans in Australia to learn about 2023’s award-winning lenders.