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Cheapest Non-Bank Home Loan 2014 – Money Magazine Best of the Best Award

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The results are in and the numbers don’t lie – the cheapest non-bank home loan for 2014 is…

Money Magazine’s 2014 Best of the Best Awards marks the thirteenth year for the flagship financial commentator, and as usual, the eyes and ears of the financial industry are on the winners. The list not only helps set a competitive standard within the market, but it also helps consumers see viable options for lenders where they can ‘hang their hats’, as it were.

Borrowers sometimes shy away from non-bank lenders, seeing bigger banks, including the big four, as safer options. But considering their place in Money Magazine’s Best of the Best, there’s something to be said about loans being offered by non-bank lenders. The title for cheapest non-bank home loan in 2014 was snapped up by loans.com.au’s Blackboard Special Home Loan. The second and third places were both taken by State Custodians, a feat in itself, by their Standard Variable Offset loan and Breathe Easy Offset loan respectively.

loans.com.au is a purely online lender, financed by Firstmac, who has been making waves in the online mortgage space. They offer a small range of loan and insurance products that take advantage of their low-cost operation, letting them keep interest rates and fees low. Money Magazine used six months of historical rate data as part of the judging methodology, citing the lender’s lower rate, no ongoing fees and a lower upfront fee as the reasoning behind its taking the top spot.

Below is a breakdown of Money Magazine's winners for 2014 Cheapest Non-Bank Home Loan.

#1 Cheapest non-bank: loans.com.au Blackboard Special

Quick stats
  • Interest rate: 4.54% p.a.
  • Upfront fees: $520
  • Loan amount: Between $50,000 and $2,000,000

This loan comes with low fees plus a range of features you’d expect from a full featured variable rate loan. Borrowers can take advantage of a 100% offset account plus the ability to make interest-only repayments for up to ten years. You’ll have access to a redraw facility, and you can split your loan up to five times without incurring additional charges. You’ll also receive a free RP Data report when you make an enquiry about the loan.

Find out more about the loans.com.au Blackboard Special Home Loan

#2 Cheapest non-bank: State Custodians Standard Variable Offset

Quick stats
    • Interest rate: 4.54% p.a.
    • Upfront fees: $275
    • Loan amount: Between $100,000 and $1,000,000

    This loan comes packed with features, including a discounted rate and waived fees for a limited time. The discounted rate applies after five years, where the rate will drop 0.20% p.a. for an ongoing rate. There’s an interest-only option available, as well as unlimited free redraws, unlimited extra repayments and up to six split loans. Note this loan has an annual fee of $299.

    Find out more about the State Custodians Standard Variable Offset Home Loan

    #3 Cheapest non-bank: State Custodians Breathe Easy Offset

    Quick stats
    • Interest rate: 4.72% p.a.
    • Upfront fees: $275
    • Loan amount: Between $100,000 and $1,000,000 (maximum exposure $2,000,000)

    With no ongoing fees and access to a host of features, the Breathe Easy Offset loan came in a close third for the Best of the Best 2014. Borrowers can enjoy a competitive rate that enjoys the same loyalty rate drop of 0.20% p.a. after five years, as well as access to a 100% offset account. A line of credit is available, as well as the ability to make extra repayments as well as a free redraw facility.

    Find out more about the State Custodians Breath Easy Offset Home Loan


    A competitive home loan market spells savings for borrowers, and Money Magazine’s Best of the Best Awards helps show you where the best savings are to be had. So compare your options, keep an eye on rates, and see which products are making the list.

Marc Terrano

A passionate publisher who loves to tell a story. Learning and teaching personal finance is his main lot at finder.com.au. Talk to him to find out more about home loans.

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