Gap widens between Big 4 and best variable rates: Mozo's Kirsty Lamont

Gap widens between Big 4 and best variable rates: Mozo's Kirsty Lamont
Gap widens between Big 4 and best variable rates: Mozo's Kirsty Lamont

Spring home loans are on sale according to comparison website Mozo.com.au, who state the gap between the average Big 4 variable home loan rate and the best offer on market has widened since September 2014.

The lowest variable home loan rate is now at a new low of 3.84% due to intense competition.

Mozo director Kirsty Lamont said data shows that the average Big 4 bank variable home loan rate is now 1.00% more expensive than the best on market, up from 0.84% last year.

“Four years ago, the lowest home loan rate was 2.74% higher than today’s, proving how important it is to keep an eye on rates and weigh up the potential savings,” she said. 

“Lenders are also promoting cash back offers of up to $1,500, annual fee waivers and other discounts to entice Spring buyers and refinancers so it’s an ideal time to shop around and save yourself some serious cash by getting a better home loan deal.

“Online lenders and challenger banks are tightening the screws on the big banks and aggressively lowering rates in a sign that home loan competition is now well and truly back to pre-GFC levels. “Borrowers who look outside the Big 4 banks can now access huge savings, with the top five home loan rates right now all below 4% and exclusively from smaller lenders."

A 1.00% difference between the average big 4 bank rate and the best on market works out to be a saving of $20,640 over 10 years on the average home loan, according to Mozo.com.au.

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Gap widens between Big 4 and best variable rates: Mozo's Kirsty Lamont

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Michael Crawford

Michael Crawford

Michael is the real estate reporter for western Sydney and loves writing about homes and the people who live in them. A former production editor and news journalist, he enjoys writing about real-world property purchases as well as aspirational buys and builds. Following a recent move from Sydney’s northern beaches, Michael now actually enjoys commuting.

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