Home loans with no ongoing fees

child homeSave on ongoing fees so you can pay off your loan quicker.

Home loans with no ongoing fees can be a great option for cash-conscious home buyers, as they reduce the cost of your loan while sometimes also offering competitive rates and a host of features that enable you to have control over your loan repayments.

How does a home loan with no ongoing fees work?

Banks and other lenders in Australia are competing for your business by offering you better packaged loans with better features and more competitive rates.

Usually, many home loans in the Australian market will charge monthly fees to maintain your home loan account, or annual fees if you have a package home loan. Home loans with no ongoing fees waive these, meaning you pay your upfront start up costs such as application and valuation fees, and then don't have to worry about recurring monthly or annual fees. Over the course of your loan, this can save you thousands.

Having no ongoing fees on your mortgage can be a lot more significant than saving on a one-off payment such as an establishment fee, and it can lower the cost of a home purchase by a couple of thousand dollars.

Comparison of home loans with no ongoing fees

Rates last updated November 19th, 2018
$
Loan purpose
Offset account
Loan type
Repayment type
Your filter criteria do not match any product
Name Product Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment Short Description
3.49%
3.52%
$500
$0 p.a.
95%
This mortgage combines a very sharp interest rate with a 100% offset account and it's available with a 5% deposit.
3.54%
3.58%
$0
$0 p.a.
80%
Get a competitive rate, save on fees and access a 100% offset account plus redraw facility. $900 cashback offer.
3.59%
3.59%
$0
$0 p.a.
80%
Enjoy flexible repayments, a redraw facility and the ability to split your loan. Plus, pay no application or ongoing fees.
3.64%
3.66%
$0
$0 p.a.
80%
A simple mortgage with a competitive interest rate and no application or monthly fees. Borrow up to $2000000 from a convenient online lender.
3.59%
3.58%
$0
$0 p.a.
80%
Apply online and get fast approval for this fixed rate, low-fee loan with redraw facilities. Add a 100% offset account for a small fee.
3.59%
3.61%
$0
$0 p.a.
90%
Get a low interest rate loan with no ongoing fees. Plus you can make extra repayments and free redraw online. Available with just a 10% deposit.
3.59%
4.14%
$395
$0 p.a.
80%
A one year fixed rate offer with no ongoing bank fees.
3.68%
3.70%
$0
$0 p.a.
80%
This loan offers a competitive variable rate and a 100% offset account to help save you on interest repayments.
3.68%
3.70%
$0
$0 p.a.
80%
A competitive variable rate mortgage for owner occupiers that comes with a no fee debit card with a $5,000 limit.
3.99%
5.35%
$600
$0 p.a.
90%
Competitive rates for fixed for 3 years with redraw facility.
3.59%
4.14%
$395
$0 p.a.
80%
A one year fixed rate offer with no ongoing bank fees.
3.72%
3.74%
$0
$0 p.a.
80%
Save on interest by taking advantage of a 100% offset account along with no ongoing fees or application fees.
3.57%
3.58%
$0
$0 p.a.
80%
Get a very low interest rate and avoid big fees. Apply online for full approval in under 30 minutes and add a 100% offset account for $10 a month.
3.67%
3.72%
$600
$0 p.a.
80%
Family guarantee option available. Enjoy flexible repayments and a low minimum loan amount.
3.87%
3.91%
$600
$0 p.a.
95%
A home loan with no ongoing fee and a redraw facility that you can borrow up to 95% LVR.
3.74%
3.74%
$0
$0 p.a.
110%
Pay no deposit or LMI and get a discounted rate with this family pledge loan. Requires a family member to act as guarantor. NSW, Qld and ACT only.
3.77%
3.82%
$600
$0 p.a.
90%
Buy your home with just a 10% deposit, few fees and a reasonable interest rate.
3.84%
3.91%
$0
$0 p.a.
80%
Get instant online approval and flexible repayment options with this fixed rate mortgage for investing.
4.17%
4.21%
$600
$0 p.a.
95%
Variable rate home loan from one of the big 4 banks. Available with just a 5% deposit.
3.79%
3.79%
$0
$0 p.a.
80%
Access an offset account and pay no application or ongoing fees on this special variable rate for owner-occupiers.
3.99%
4.86%
$0
$0 p.a.
80%
Access a fee-free 100% offset account and pay no application or ongoing fees.
3.89%
5.05%
$595
$0 p.a.
90%
Investors can take advantage of a short term fixed rate with no application or ongoing fees.
3.62%
3.62%
$0
$0 p.a.
95%
A low deposit mortgage with a competitive rate and plenty of flexibility. QLD residents only. Eligible borrowers can get a 15% discount on home and contents insurance for the life of their loan.
3.72%
3.72%
$0
$0 p.a.
90%
New customers can get a discounted variable rate and a fee-free redraw facility. NSW, QLD and ACT residents only.
3.94%
4.95%
$595
$0 p.a.
95%
Take advantage of extra repayment options with this loan, as well as no application, monthly or annual fees.
3.88%
3.89%
$0
$0 p.a.
90%
Save on interest with a free 100% offset account and buy your property with just a 10% deposit.

Compare up to 4 providers

How much can you save with no ongoing fees?

Richard is deciding between two home loans. A no-frills home loan with no ongoing fees and a fully featured home loan with an offset account.

The no-frills home loan has an interest rate of 5.50% p.a. and the lender charges the standard upfront fees, totalling $400.

The fully featured home loan has a range of upfront fee discounts and an interest rate of 5.50% p.a., but charges a $300 annual fee.

Richard wants to know which loan is going to save him more in the long run.

No-frills home loan Fully featured home loan
Interest rate 5.50% p.a. 5.50% p.a.
Loan amount $500,000 $500,000
Loan term 20 years 20 years
Set up fees $400 $0
Ongoing fees (p.a.) $0 $300
Total cost of fees $400 $6,000
Total interest payable $325,465 $325,465
Total cost of loan with fees $825,865 $831,465

In the end, it seems like the no-frills home loan would be cheaper in the long run.


How to compare home loans with no ongoing fees

  • Waived fees. Find out what ongoing fees you're not going to be charged. In many cases a home loan might waive monthly or annual fees, but still charge fees for offset or redraw facilities, which might add a considerable cost to your loan. Also compare other loans to ensure that paying lower upfront fees won't offer you a bigger saving than waived ongoing fees.
  • Interest rates. Be mindful that the lender could be making up for the lack of fees with a higher interest rate. Compare the interest against the comparison rate to see if the fees make a difference. The comparison rate is a useful yardstick, as it merges the interest rate with some of the fees you'll pay over a certain period of time, usually 25 years.
  • Additional features. The fact that a home loan has no ongoing fees should not be enough to make you go for it. Consider other features that come with the loan that could make repayment easier or access to additional funds possible. If you get a home loan with an offset account, you could end up saving more on interest rates, while a loan that allows for additional repayments could help you get out of your loan sooner and give you access to these payments through a redraw facility.
  • Repayment options. A loan with flexible repayment options could help reduce the strain of paying it off, allowing you to repay when your salary is paid. As mentioned, a home loan with an option to make additional repayments at any time can also be helpful if you predict an increase in your income in the future.

How to compare home loans with no application fees


Pros and cons

Pros

  • No ongoing fees. This is the main advantage of this type of mortgage. Such loans are becoming increasingly popular in Australia, as lenders compete for mortgage business. The loans offer you no ongoing monthly administrative fees, no exit fees and no annual fees, making it more affordable to own a home and repay the mortgage.
  • Could work out to be cheaper. One of the main benefits of having no fees is that you can save the money to put towards your home loan. This pays off your principal faster, and could reduce interest payments.

Cons

  • Higher interest rates. Home loans with no ongoing fees could have higher interest rates than other standard mortgages, to make up for the lack of fees, although this is not a hard and fast rule.
  • No features. Another reason that lenders could waive a range of fees is that the cost of maintaining the loan is cheaper for them. This usually means that the loan is a no-frills one and you could be missing out on features like an offset account.

Things to consider about home loans with no ongoing fees

There is more to a home loan than just the ongoing fees you pay. When choosing a loan with no ongoing fees, be sure to look at the extra features you get such as an offset account or the option to make additional repayments. If you can foresee in the future that you’ll be making additional repayments, this is something you’ll need to consider before committing in a loan.

While fees are important, they aren't the only indicator of a home loan's value. Put in a large amount of effort into choosing an interest rate type, such as a variable, fixed or split rate, and also ensure that the home loan will suit you. Take into account cash backs and other incentives, such as home loans which offer Qantas Points earning. Finally, know too that if you prefer to keep all of your banking accounts with the one lender, a package home loan can also sometimes give you large savings and features.


Frequently asked questions

New laws in Australia have banished any exit fees on all home loans applied for from July 1, 2011. However, you may have to pay exit fees if you refinance a mortgage that was applied for before this deadline.

Even though these home loans don't charge monthly or annual fees, they might still charge up front fees such as establishment/application fees, valuation fees, legal fees and settlement fees.

Marc Terrano

Marc Terrano is a Lead Publisher at finder. He's been writing and publishing personal finance content for over five years and loves to help Australians get a better deal.

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Home Loan Offers

Important Information*
UBank UHomeLoan Variable Rate - Discount offer for Owner Occupiers, P&I Borrowing over $200,000

Take advantage of a low-fee mortgage with a special interest rate of just 3.59% p.a. and a 3.59% p.a. comparison rate.

loans.com.au Essentials - Variable (Owner Occupier, P&I)

A competitive interest rate home loan with interest only options. Interest rate 3.64% p.a.
comp rate of 3.66% p.a.

Tic:Toc Live in Loan Variable Rate - Principal & Interest

Get a very low interest rate and avoid big fees. Apply online for full approval in under 30 minutes and add a 100% offset account for $10 a month.

HSBC Home Value Loan - (Owner Occupier P&I)

Get a low interest rate loan with no ongoing fees. Plus you can make extra repayments and free redraw online. Available with just a 10% deposit.

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