The Reserve Bank of Australia has just hiked the interest rate for the fifth consecutive month in a row, but you can still get a mortgage under 3.50 per cent if you look around.

We’ve scoured the market and found the cheapest mortgages on the market and calculated the potential savings.

According to Canstar, a 30 year mortgage with uLoan has a variable rate of 3.14 per cent. On an average mortgage of $500,000 that equates to monthly repayments of $2,146.

For every year you keep the loan open, you get a 0.01 per cent discount.

With G&C Mutual Bank, you can secure the Momentum Home Loan at a variable rate of 3.34 per cent. Monthly repayments work out to be about $2,201.

Although just over our 3.5 per cent threshold, the tic:toc variable P&I Live In rate, currently sits at 3.59 per cent and monthly repayments of $2,271.

The loan is open to borrowers with a five to 20 per cent deposit. There is no establishment fee, access to 100 per cent offset and redraw accounts. The valuation fees of $1,000 are waived on loans that are opened before September 30, 2022.

Home loans for less than 3.5%

Lender Rate Repayment
uLoan 3.14% $2,146
G&C Mutual Bank 3.34% $2,201
tic:toc 3.59% $2,271

The Reserve Bank of Australia has just raised interest rates for the fifth consecutive month, and it’s now sitting at 2.35 per cent.

That latest interest rate hike by the Reserve Bank of Australia could add an additional $144 to the average homeowner’s mortgage.

That means repayments on an $800,000 mortgage will now be about $4,300 per month – up a massive $1,000 since April.

“Even if you can shave just 0.5 percentage points off your rate it’s worth switching,” says Graham Cooke, Finder’s head of consumer research. “You could potentially save hundreds of dollars per month by switching to a lender with a cheaper rate.”

Mr Cooke referred to recent rate rises: “After yet another cash rate increase, annual mortgage repayments for many borrowers are almost $10,000 more expensive than they were a few months ago and could climb even higher this year.”

He advises mortgage holders to contact their lender and ask for a better deal on their home loan.

“There’s still plenty of competition in the home loans market – the best thing you can and should do is compare yours against others.”

According to Finder research, the average Australian home loan is $494,629.

The average variable interest rate on Finder is 4.51 per cent and the lowest variable rate is 3.14 per cent.


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