The best home loans save you money with low interest rates, $0 application fees and 100% offset accounts. This is how you get one.
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UBank Home Loan Offer
Apply for the UBank UHomeLoan Variable Rate and get a low rate plus no upfront or ongoing fees as well as unlimited redraws. UBank will cut its variable rates for new and existing customers on June 28, making this rate even lower.
- Interest rate of 3.59% p.a.
- Comparison rate of 3.59% p.a.
- Application fee of $0
- Maximum LVR: 80%
- Minimum borrowing: $200,000
Aussie is both a lender and a mortgage broker, and offers a range of services.
- FREE Suburb and Property Report with every appointment.
- Access 3,000+ loans from over 20 lenders.
- Get expert help with your loan application, including paperwork and eligibility.
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Your guide to finding the right mortgage
How do I compare mortgages to get the best deal?
- The lowest interest rates. A lower interest rate means lower repayments. Shaving just a few points off your interest rate can unlock enormous savings over the life of a 30-year mortgage. You can easily sort loans by lowest rate in the table above.
- Limited fees. Fees are also something you need to check when comparing. A home loan that hits you with multiple fees is probably going to cost you more than you realise over time. Check a loan's comparison rate to get a better idea of the added cost of fees.
- Features you need. Home loans with added features can offer you more flexibility in how you manage your loan and make repayments. Offset accounts can help you cut down your interest repayments. Package loans let you bundle your mortgage with other financial products (like transaction accounts and credit cards) for convenience and discounts. Redraw facilities let you take out extra money you've paid into your mortgage to use in emergencies.
More guides to finding the right loan for you
What's the best home loan for me?
Finding the best mortgages for different borrowers
Here are several scenarios featuring different borrowers. They're all looking for the best loan, but they all need something a little different.
The cash-strapped first home buyers
Sarah and Ted are in their late 20s and currently renting. They've saved up $100,000 but because they live in Sydney this isn't a very big deposit.
The best home loan for this young couple:
- Has a low interest rate. They cannot afford massive repayments.
- Is a low deposit loan. They probably haven't saved a 20% deposit so they'll need a loan with a maximum insured LVR of 90 or 95%.
- Has a guarantor option. Alternatively, Sarah's parents may be willing to guarantee a portion of their deposit. So a loan that allows for guarantors is a great option.
The cautious investor
Margaret is currently paying off her home. She wants to buy a unit as an investment. She has $200,000 in equity and will use a line of credit loan to cover her deposit. But she'll need a loan to buy the unit. She is less concerned with fast capital growth and more concerned with long-term income from rent.
The best loan for Margaret:
- Is an investment loan. She cannot purchase an investment property with an owner-occupier loan.
- Has a competitive interest rate. Investment loans have higher interest rates, so she needs to shop around for the best deal.
- Has limited features. As her current loan has an offset account, and paying off this debt is her priority, Margaret doesn't need a full-featured loan.
The ripped-off refinancer
David is paying off a $1 million mortgage. He hadn't looked at his interest rate in a while and was shocked to learn that the rate has jumped well above 4%. His current loan is a basic, no-frills variable loan without many extra features.
David wants to refinance to a loan that:
- Has a much lower interest rate. This could save David thousands of dollars a year.
- Has low fees. David's current mortgage has a hefty discharge fee. He wants to switch to a mortgage that doesn't slug him with more costs.
- Has an offset account. David has managed to put away a bit of extra money while making repayments. He wants to put this cash into an offset to lower his interest repayments.
The above scenarios are generalised examples only.
Finding the right home loan can take a lot of time and energy. Mortgage brokers are professionals who compare home loans from a wide panel of lenders. They can find you a product that matches your financial needs and property strategy and also help you with your application.
I have a few more questions about getting a good quality home loan