Best *Home Loans June 2018

From razor-sharp interest rates to $0 application fees and flexible mortgage features, learn how to find the best home loan for you.

Finding the perfect mortgage for your situation can help you save money and pay off your mortgage faster. This guide will tell you what features to look for in the best home loans and teach you how to determine your home loan needs. Or you can start comparing loans in the table below.

• *Disclaimer

  *The offers compared on this page are chosen from a range of products finder.com.au has access to track details from and is not representative of all the products available in the market. Products are displayed in no particular order or ranking. The use of terms 'Best' and 'Top' are not product ratings and are subject to our disclaimer. You should consider seeking independent financial advice and consider your own personal financial circumstances when comparing products.

UBank UHomeLoan Variable Rate - Discounted Rate

UBank UHomeLoan Variable Rate - Discounted Rate — borrowing between $200,000 and less than $700,000 (Owner Occupier, P&I)

3.69 % p.a.

variable rate

3.69 % p.a.

comparison rate

UBank UHomeLoan Variable Rate - Discounted Rate

Enjoy flexible repayments, a redraw facility and the ability to split your loan. Plus, pay no application or ongoing fees. Get $1,000 cash into a USaver account when you apply for a loan of $200,000 or more (new or refinance). Terms and conditions apply.

• Interest rate of 3.69% p.a.
• Comparison rate of 3.69% p.a.
• Application fee of $0
• Maximum LVR: 80%
• Minimum borrowing: $200,000
• Max borrowing: $700,000

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Compare home loan rates

• IMB Budget Home Loan - Special LVR <=90% (Owner Occupier, P&I): 3.69% p.a. comparison rate. Low rate, low deposit loan.
• NAB Choice Package Home Loan - 2 Year Fixed (Owner Occupier P&I) First Home Buyer Special: 4.86% p.a. comparison rate. Competitive variable rate with package discounts from a Big Four bank.
• loans.com.au Essentials - Variable (Owner Occupier, P&I): 3.66% p.a. comparison rate. Low interest rate mortgage with low fees from an online lender.
• Greater Bank Ultimate Home Loan - Discounted 1 Year Fixed LVR ≤90% ($150K+ Owner Occupier): 4.49% p.a. comparison rate. Discounted, low rate that's fixed for the first year.

How do I compare mortgages to get the best deal?

There are three things every borrower needs to look at when hunting for the perfect home loan: rates, fees and features. The best home loans usually have:

• 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.

What's the best home loan for me?

Once you've understood the basics you need to look more closely at your own specific needs. To find the best home loan for you, consider these questions:

• What is your current financial situation? Take a hard look at your savings, income and expenses to work out how much you can afford to borrow. Be realistic, calculate your monthly repayments and factor in future rate rises to make sure you don't get stuck with repayments you can't afford.
• What is your property strategy? The best mortgage is one that matches your buying intentions. If you're a young first home buyer with limited funds you're looking at a very different mortgage product compared to a middle-aged investor buying their second or third property.
• What are your future financial needs? Your needs change over time. You might want a basic, no-frills loan now and one with more features later on as your income increases. A flexible home loan might serve you well for years into the future, provided the interest rate remains low. But you can always refinance to a better loan later. With this in mind, a loan that has high discharge or switching fees will penalise you for refinancing.

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 above scenarios are generalised examples only.

Can a mortgage broker help me find the right mortgage product for me?

Yes, they can. While comparing for yourself is easy, finding the right home loan can take a lot of time and energy. Mortgage brokers are home loan professionals who compare 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. A broker's services are free because they receive a commission from the lender.

Find a mortgage broker and get your home loan journey started

I have a few more questions about getting the best home loan

• How long does the home loan application process take?

  You could get your home loan approved within a few days, though the proper answer is that it depends. Each loan and application process is different, so it's hard to give a ballpark figure. If you're in a hurry, your lender can usually arrange settlement within a few days when your application has been conditionally approved.

• How do I know how much I can borrow?

  Get an estimate of how much you can borrow with our calculator by entering a few of your details. This can give you an idea of how much you can afford to spend.

• Can I borrow 100% of the property's value?

  Post-GFC, these types of loans are only possible if you have a guarantor. This is someone, usually family, who is willing offer their property as security for the loan. Compare 95% LVR home loans and lenders that allow guarantors on our page.

• I'm a pensioner: what can I do to get the right mortgage?

  If you're a pensioner who already owns a home you should look at tapping into the equity in the home with a line of credit loan or a reverse mortgage. It can be harder to get a loan as a low-income pensioner, but many lenders consider various pensions to be a valid source of income. This includes disability pensions and war widow or veterans' pensions.

  You can read our full guide to home loans for pensioners here.

• Can I get a great home loan if I'm a self-employed borrower?

  Self-employed borrowers can have difficulty proving to lenders that they have a stable income. Many lenders require PAYG statements as proof of income and employment. But some lenders will accept alternative documents for income verification.

• I have terrible credit history! Can I still get a better loan?

  You can! Borrowers can end up with bad credit scores for a variety of reasons. It does make it harder to get a home loan but nothing is impossible. There are a few steps you can take:

  • Get your debt under control.
  • Look at bad credit home loans tailored for borrowers in your situation.
  • Speak to a mortgage broker and get expert help.

Compare more home loan options here

• *Disclaimer

  *The offers compared on this page are chosen from a range of products finder.com.au has access to track details from and is not representative of all the products available in the market. Products are displayed in no particular order or ranking. The use of terms 'Best' and 'Top' are not product ratings and are subject to our disclaimer. You should consider seeking independent financial advice and consider your own personal financial circumstances when comparing products.

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