Get the Finder app 🥳

Track your credit score

Free

Home loans with no ongoing fees

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

Updated

Fact checked

We’re committed to our readers and editorial independence. We don’t compare all products in the market and may receive compensation when we refer you to our partners, but this does not influence our opinions or reviews. Learn more about Finder .

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.

UBank Home Loan Offer

UBank UHomeLoan Variable Rate - Discount Offer for Owner Occupiers, Variable P&I Rate

2.49 % p.a.

variable rate

2.49 % p.a.

comparison rate

UBank Home Loan Offer

This rate will drop to 2.84% p.a on 29 October 2019 for new and existing customers. Apply for the UBank UHomeLoan Variable Rate and get a low rate plus no upfront or ongoing fees as well as unlimited redraws.

  • Interest rate of 2.49% p.a.
  • Comparison rate of 2.49% p.a.
  • Application fee of $0
  • Maximum LVR: 80%
  • Minimum borrowing: $100,000
Go to site
Promoted

Comparison of home loans with no ongoing fees

Data indicated here is updated regularly
$
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
UBank UHomeLoan Variable Rate - Discount Offer for Owner Occupiers, Variable P&I Rate
2.49%
2.49%
$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.
Athena Liberate Home Loan - 70% to 80% LVR Owner Occupier, P&I
2.44%
2.38%
$0
$0 p.a.
80%
A competitive variable rate mortgage for owner occupiers $0 application and $0 ongoing fees. This interest rate falls over time as you pay off the loan.
homeloans.com.au Low Rate Home Loan with Offset - LVR 60% to 80% (Owner Occupier, P&I)
2.39%
2.41%
$0
$0 p.a.
90%
This loan offers a competitive variable rate and a 100% offset account to help save you on interest repayments. This loan is not available for construction.
Well Home Loans Balanced Variable - LVR 80% Special Offer (Owner occupier, P&I)
2.17%
2.20%
$250
$0 p.a.
80%
A very low interest rate for home buyers with 20% deposits saved. Add an offset account for a small fee. This special discount rate is available for new borrowers who apply and get approved by 30 November 2020. Not available for construction purposes.
HSBC Fixed Rate Home Loan - 2 Year Fixed Rate LVR 80% or below (Owner Occupier, P&I)
2.09%
2.98%
$0
$0 p.a.
80%
Lock in a competitive fixed rate for 2 years and buy your home with a 20% deposit.
Greater Bank Great Rate Home Loan - Discounted 1 Year Fixed with Family Pledge Home Loan  Up to 110% LVR (Owner Occupier)
1.99%
3.52%
$0
$0 p.a.
80%
Requires a family member to act as guarantor.
Get one of the lowest rates on the market with this fixed rate mortgage and borrow more with help from a family guarantor. NSW, QLD and ACT residents only.
Yard Variable Home Loan - LVR 80% Special (Owner Occupier, P&I)
2.39%
2.42%
$0
$0 p.a.
80%
A very low variable rate loan for home buyers with an optional offset account ($10 monthly fee). 20% deposit required.
Newcastle Permanent Building Society Fixed Rate Home Loan - 1 Year Fixed (Owner Occupier, P&I)
2.49%
4.12%
$595
$0 p.a.
90%
$2,000 refinance cashback
Investors can take advantage of a short term fixed rate with no ongoing fees. $2,000 cashback for eligible refinancers borrowing $250,000 or more.
CUA Achieve Variable Home Loan - $500k+ (Owner Occupier, P&I)
2.55%
2.60%
$600
$0 p.a.
95%
Home buyers can get a competitive, low-fee variable rate plus a 100% offset account. Low deposit option available. Eligible new home buyers with low deposits can apply for the First Home Loan Deposit Scheme with this lender and avoid LMI costs. Eligible refinancers can get a $2,000 pre-paid credit card when they switch to CUA.
Heritage Bank Discount Variable Home Loan - LVR ≤ 80% (Owner Occupier, P&I) New Customers Only
2.78%
2.83%
$600
$0 p.a.
80%
Family guarantee option available. Enjoy flexible repayments and a low minimum loan amount.
HSBC Home Value Loan - Promotional Offer (Owner Occupier P&I)
2.59%
2.60%
$0
$0 p.a.
80%
Get a low interest rate loan with no ongoing fees. Plus you can make extra repayments and free redraw online.
UBank UHomeLoan - 1 Year Fixed Rate (Owner Occupier, P&I)
2.14%
2.46%
$395
$0 p.a.
80%
Fix your mortgage for 1 year with a very competitive rate and no ongoing fees.
Newcastle Permanent Building Society Fixed Rate Home Loan - 2 Year Fixed (Owner Occupier, P&I)
2.54%
3.98%
$595
$0 p.a.
95%
Take advantage of extra repayment options with this loan, as well as no application, monthly or annual fees.
UBank UHomeLoan - 1 Year Fixed Rate (Owner Occupier, IO)
2.29%
2.47%
$395
$0 p.a.
80%
A one year fixed rate offer with no ongoing bank fees.
ING Fixed Rate Home Loan - 3 Year Fixed Rate (Owner occupiers)
2.44%
3.70%
$499
$0 p.a.
95%
Lock in a fixed rate for three years and get the option to make up to $10,000 in additional repayments.
loading

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 loanFully featured home loan
Interest rate 5.50% p.a.5.50% p.a.
Loan amount $500,000$500,000
Loan term 20 years20 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.

More guides on Finder

Home Loan Offers

Important Information*
Logo for Westpac Flexi First Option Home Loan - Basic Variable Rate (Owner Occupier, P&I)
Westpac Flexi First Option Home Loan - Basic Variable Rate (Owner Occupier, P&I)

Up to $3,000 refinance cashback. A flexible and competitive variable rate loan. Eligible borrowers refinancing $250,000 or more can get $2,000 cashback per property plus a bonus $1,000 for their first application. Other conditions apply.

Logo for St.George Basic Home Loan - LVR 60% to 80% (Owner Occupier, P&I)
St.George Basic Home Loan - LVR 60% to 80% (Owner Occupier, P&I)

Up to $4,000 refinance cashback. A competitive variable rate loan from St.George. Refinancers borrowing $250,000 or more can get $4,000 cashback (Other terms, conditions and exclusions apply).

Logo for Athena Liberate Home Loan - 70% to 80% LVR Owner Occupier, P&I
Athena Liberate Home Loan - 70% to 80% LVR Owner Occupier, P&I

A competitive variable rate mortgage for owner occupiers $0 application and $0 ongoing fees. This interest rate falls over time as you pay off the loan.

Logo for UBank UHomeLoan Variable Rate - Discount Offer for Owner Occupiers, Variable P&I Rate
UBank UHomeLoan Variable Rate - Discount Offer for Owner Occupiers, Variable P&I Rate

Take advantage of a low-fee mortgage with a special interest rate of just 2.49% p.a. and a 2.49% p.a. comparison rate.

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.
Go to site