Get your own home loan rate cut this November

Adam Smith 28 October 2016

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Hopes of a Melbourne Cup Day rate cut are fading, but rock-bottom home loan rates are still available - here's where to look.

It’s a lineball call whether the Reserve Bank of Australia will cut the official cash rate at its meeting next week, with low inflation offset by above-trend growth.

Consumer Price Index (CPI) figures from the Australian Bureau of Statistics show inflation edged up only 0.3% for the quarter, to sit at 1.3%. The figure is well below the RBA’s 2-3% target band. But with GDP growth sitting above trend, a cut when the RBA meets next Tuesday is far from certain. Futures markets are pricing in only a 0.6% chance, and the widely held belief that cuts are often "sneaked in" on Melbourne Cup day isn't backed by the evidence.

The relationship between official rates cuts and what borrowers get charged is also far from perfect. When the RBA last cut rates back in August, very few banks passed on the cut in full.

This doesn’t mean borrowers should despair, however. Borrowing rates remain at historic lows, and good deals for potential home owners abound. But to get the best deal for you, you'll need to look beyond your existing provider and make sure you consider every aspect of the loan. As well as the basic rate, consider fees, limitations on how much of a deposit you'll need and whether you'll have the flexibility to make extra payments or redraw funds.

Take that approach and you'll potentially be better off no matter what happens with official rates. Here's a hand-picked selection of a few of the best current offers in finder's home loan database to consider during your search.

HSBC Home Value Loan

This basic loan comes with features such as a redraw facility and flexible repayment options, but doesn’t carry fees that can make some variable rate loans less affordable. Its high loan-to-value ratio (LVR) of 90% means it’s a good choice for first home buyers.

Greater Bank Ultimate Fixed Rate Loan

If rates are at the bottom of the cycle, as some economists suggest, locking in a competitive rate now could safeguard you from rate hikes in the future. Greater Bank’s Ultimate Fixed Rate Loan features a discounted one-year fixed rate of only 3.59%, as well as a high maximum LVR of 85%.

loans.com.au Essentials Home Loan

This no-frills home loan offers a rock-bottom 3.39% variable rate, as well as a redraw facility. It eschews some of the features you may not need, and has no application or ongoing fees.

NAB Choice Package Fixed Rate

By bundling a competitive fixed rate home loan with other products such as credit cards, insurance and savings accounts, you’ll be eligible for interest rate discounts and waived fees. NAB is also offering 250,000 Velocity Frequent Flyer points for customers who draw down on a new NAB home loan before 31 December 2016 and make NAB their main bank.

Newcastle Permanent Premium Plus Package

This package loan carries a low variable rate, and offers an additional 0.53% discount to new customers with loans above $150,000. It has a high maximum LVR of 95%, and offers a 100% offset account.

You can compare more current home loan offers in the table below, and use the built-in calculator to find out how much you'll pay each month for your chosen loan amount.

Rates last updated December 11th, 2016
$
Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment
HSBC Home Value Loan - Resident Owner Occupier only
HSBC Home Value Loan - Resident Owner Occupier only
3.55% 3.57% $0 $0 p.a. 90% Go to site More info
UBank UHomeLoan Variable Rate - Standard Variable Rate Value Offer (Owner Occupier P&I)
UBank UHomeLoan Variable Rate - Standard Variable Rate Value Offer (Owner Occupier P&I)
3.74% 3.74% $0 $0 p.a. 80% Go to site More info
loans.com.au Essentials - New Purchases Only Up to 80% LVR (Owner Occupier, P&I)
loans.com.au Essentials - New Purchases Only Up to 80% LVR (Owner Occupier, P&I)
3.39% 3.41% $0 $0 p.a. 80% Go to site More info
State Custodians Standard Variable Spring Special - LVR 80% (Owner Occupier)
State Custodians Standard Variable Spring Special - LVR 80% (Owner Occupier)
3.59% 3.92% $0 $299 p.a. 80% Go to site More info
Greater Bank Ultimate Home Loan - Discounted 1 Year Fixed ($150K+ Owner Occupier)
Greater Bank Ultimate Home Loan - Discounted 1 Year Fixed ($150K+ Owner Occupier)
3.59% 4.42% $0 $375 p.a. 85% Go to site More info
ANZ Breakfree Package Home Loan - 2 Year Fixed (Owner Occupier) $150k+
ANZ Breakfree Package Home Loan - 2 Year Fixed (Owner Occupier) $150k+
3.75% 4.62% $0 $395 p.a. 95% Go to site More info
NAB Choice Package Home Loan - 2 Year Fixed (Owner Occupier)
NAB Choice Package Home Loan - 2 Year Fixed (Owner Occupier)
3.75% 4.87% $0 $395 p.a. 95% Go to site More info
ClickLoans The Online Home Loan - Owner Occupier ≤ 80% LVR
ClickLoans The Online Home Loan - Owner Occupier ≤ 80% LVR
3.69% 3.69% $0 $0 p.a. 80% Go to site More info
loans.com.au Offset Variable - New Purchases Only Up to 80% LVR (Owner Occupier, P&I)
loans.com.au Offset Variable - New Purchases Only Up to 80% LVR (Owner Occupier, P&I)
3.49% 3.51% $0 $0 p.a. 80% Go to site More info
Bank Australia Basic Home Loan - Variable (Owner Occupier)
Bank Australia Basic Home Loan - Variable (Owner Occupier)
3.59% 3.60% $0 $0 p.a. 80% Go to site More info
CUA Kick Start Variable Home Loan - 2 Years Introductory (Owner Occupier)
CUA Kick Start Variable Home Loan - 2 Years Introductory (Owner Occupier)
3.69% 3.87% $600 $0 p.a. 90% Go to site More info
Australian Unity Kick Starter Home Loan
Australian Unity Kick Starter Home Loan
3.79% 3.82% $600 $0 p.a. 80% Go to site More info
State Custodians Breathe Easy Spring Special  - LVR 80% (Owner Occupier)
State Custodians Breathe Easy Spring Special - LVR 80% (Owner Occupier)
3.72% 3.75% $0 $0 p.a. 80% Go to site More info
Newcastle Permanent Building Society Premium Plus Package Home Loan - New Customer Offer ($150,000+ Owner Occupier)
Newcastle Permanent Building Society Premium Plus Package Home Loan - New Customer Offer ($150,000+ Owner Occupier)
3.74% 4.12% $0 $395 p.a. 95% Go to site More info
Latest home loans headlines

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