The top five variable loans currently available: Mozo

We are currently in the most competitive variable home loan market since the GFC, according to the director of Mozo.com.au, Kirsty Lamont.

Lender Heritage Bank has just dropped their variable home loan rate down to 4.39%, which according to Mozo analysis of RBA average home loan data, is a rate not seen for average home loans since the 1950s.

"Fierce competition has well and truly returned to the market as smaller and online lenders cut rates to record-low levels to compete with the majors,” Lamont told Property Observer.

She urged borrowers to look beyond the big four banks, with savings available of $2,064 per year based on a $300,000 loan over 25 years. 

"You may have to be prepared to do some of the leg work yourself but that could earn you some solid savings on your home loan,” she said.

Here are the top five loans currently available:

*Comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years

Source: Mozo.com.au as at 24 November 2014

Mozo’s data, which looks at 551 loans from 79 providers, records 62 providers offering variable rates less than 5%, with an average variable home loan rate of 5.22%. The average variable rate of the big four is 5.38%.

These average rates have been based on LVRs of up to 80% on a $300,000 loan amount.