5 ways a better home loan can save you money (and how to find one)

A better home loan is a cheaper one, and one that gives you more control over how you repay it. Here's what it looks like.

As home loan rates have started falling, more Australians are deciding it's time to get a better home loan. But what does a better home loan really look like?

Every borrower is different, but all of us can benefit from a lower interest rate, lower fees and a flexible home loan that helps you pay it off faster.

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1. You get a lower interest rate

The single most important rule of home loans is this: a lower interest rate saves you money. Even a small difference in rates could save you hundreds, even thousands of dollars a year in lower repayments.

So a better home loan is one with a lower interest rate than most loans on the market. Right now, the average borrower should be looking for a home loan with a rate well under 6%.

If you're looking for value, BCU Bank's OMG Home Loan features a competitive variable interest rate from 5.49% p.a.* (5.52% p.a. comparison rate**)

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2. You pay fewer fees

While loan fees don't hit you in the wallet as hard as a high interest rate does, fees still add up.

Especially when your loan has small, ongoing fees you may not even notice each month. What's $10 a month over 30 years?

It's $3,600!

And in a market where some lenders charge big fees and some charge basically none, it makes no sense to stick with a home loan that's loaded with fees.

BCU Bank charges no ongoing fees on its OMG Home Loan, and has very few upfront fees. This lets you focus on repaying your loan faster.

3. You get flexible repayment options

Your home loan is a debt and an obligation. But a better home loan is one that gives you more control over how and when you pay it off.

You have to make monthly repayments on your home loan, but some lenders let you repay weekly or fortnightly.

While it doesn't seem like a big difference, more regular repayments help you get that debt down slightly faster.

BCU's OMG Home Loan lets borrowers make weekly, fortnightly or monthly repayments.

4. You can make extra repayments

Letting you make extra repayments is another way the best home loans give you more control over your debt. Time is money, especially when your lender charges interest every day.

By making extra repayments you're effectively getting out of debt faster. And you pay less interest.

BCU Bank's OMG Home Loan lets borrowers make extra repayments without any penalty. You can even redraw (which means access) any of these extra repayments later if you need money in an emergency.

5. You get support when you need it

In an age of AI chatbots and online support, many borrowers still need a human helping them understand their loan. This is especially true when you're applying for the loan, but it matters from day one right until the day you pay it off.

Lenders like BCU Bank have local branch support across the NSW coast and into QLD, as well as phone support and a mobile lending team that comes to you.

Learn more about BCU Bank home loans today

^{Credit products issued by Police & Nurses Limited (BCU Bank) ABN 69 087 651 876 AFSL/Australian Credit Licence 240701. Lending criteria, terms & conditions, fees & charges apply. *Rate advertised is for P&I loans >$20k. LVR <60%. Product information current as at 9 June 2025 and is subject to change. Other loan to value ratio tiers and rate options are available on our website. The Target Market Determination (TMD) for this product is available on our website or upon request. **Comparison rate calculated on a loan amount of $150,000 over a term of 25 years based on monthly repayments. For variable interest-only loans, comparison rates are based on an initial 3-year Interest Only period. During an Interest Only period, your Interest Only payments will not reduce your loan balance. This may mean you pay more interest over the life of the loan. WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different Comparison Rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the Comparison Rate but may influence the cost of the loan.}