Loan and behold: The cheapest home loans in Australia as banks slash rates
Homeowners could see significant savings on their mortgages following the Reserve Bank's latest interest rate cut, according to new research by Finder.
With sub-6% rates flooding the market, variable and fixed rates in Australia have plummeted to their lowest levels since early 2023.
The cheapest variable rate in Australia is now 5.13% (only available for certain types of green homes) while the cheapest fixed rate is 5.14% (3 years fixed, requires multiple declarations that the house is 100% electric).
However the cheapest variable rate available to most qualified buyers starts at 5.59%.
All but about 30 lenders have lowered their variable mortgage rates since the Reserve Bank's cash rate cut last week.
Many economists are expecting the Reserve Bank to cut the cash rate once more this year – potentially lowering rates a further 25 basis points.
Graham Cooke, head of consumer research at Finder, said borrowers are flocking to take out a cheaper rate loan.
"Mortgage rates are coming down and borrowers are ready to pounce on cheaper deals.
"What's really impressive is that every single bank who has announced new rates since the RBA decision has passed on the full rate cut – showing how competitive the market is.
"This means that right now the power is with the borrower to get a better deal."
Cooke said before signing on to a lower fixed rate, borrowers need to be aware they could be missing out on even better deals later in the year.
"With further rate cuts on the horizon, locking in now could mean leaving money on the table."
Finder has created the Finder Score as an objective, insights-driven number (powered by human experts) to help make choosing a product easier.
Finder Score is a simple way to compare different financial products like accounts, loans, credit cards, and more, based on their overall value and benefits.
Cooke said if your home loan doesn't have a Finder Score of at least a '9' or above, you could be getting a better deal.
"If your lender hasn't dropped their rates yet – that's a red flag. Another, cheaper, lender will be willing to snap up your business.
"Having access to a wide range of lenders significantly increases the chances of securing the best deal."
Cheapest variable rate home loans*
| Lender | Lowest effective variable rate** | Effective date |
| The Mutual Bank | 5.64% | 4 March |
| MOVE Bank | 5.69% | 1 March |
| G&C Mutual Bank | 5.70% | 1 March |
| Unloan | 5.74% | 21 February |
| Tiimely | 5.74% | 7 March |
| Source: Finder | ||
| *Products include 20% deposit and are available to all qualified Australians **Rates listed here reflect current variable interest rates, minus 25 basis points. Lenders may change, remove or update their rates at any time. |  |
Top Finder Score for 1-year Fixed Rate Mortgages*
| Lender | Finder Score | Fixed Rate | Comparison Rate |
| Horizon Bank Fixed Rate Home Loan | 9.5 | 5.64% | 6.40% |
| Hume Bank MyBlue Fixed Home Loan | 9.3 | 5.89% | 6.16% |
| Community First Bank Accelerator Home Loan Package | 9.1 | 5.74% | 6.39% |
| Easy Street Fixed Home Loan | 9.1 | 5.74% | 6.06% |
| Qantas Money Fixed Home Loan | 9.1 | 6.09% | 6.30% |
| Source: Finder as of Feb 25, 2025 | |||
| *Products include 20% deposit and are available to all qualified Australians | |
Top Finder Score for 3-year Fixed Rate Mortgages*
| Lender | Finder Score | Fixed Rate | Comparison Rate |
| Hume Bank MyBlue Fixed Home Loan | 8.9 | 5.69% | 6.05% |
| Horizon Bank Fixed Rate Home Loan | 8.8 | 5.54% | 6.24% |
| Up Home Loan Fixed Rate | 8.7 | 5.80% | 5.94% |
| Easy Street Fixed Home Loan | 8.6 | 5.64% | 5.97% |
| Community First Bank Accelerator Home Loan Package | 8.6 | 5.64% | 6.30% |
| Source: Finder as of Feb 25, 2025 | |||
| *Products include 20% deposit and are available to all qualified Australians | |
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