Super low interest rates, scrapping fees and charges and even $1000 cash back, with a record low interest rate and fierce competition, Australia’s banks are throwing everything they’ve got to get your attention and secure your home loan.
The Reserve Bank’s decision to cut interest rates down to 2.75% means Australia now has its lowest interest rate on record! The average interest rate on the Mozo database for all home loan products right now is 5.72% but many lenders are offering well below the average rate.
Here’s a quick look at some of the best bargains and savings the banks are offering to home loan shoppers:
Variable loans under 5%
Compared to the average interest rate of 5.72%, you could knock almost $190 a month off your home loan repayments (on a $350,000 home loan) by switching to one of these home loans.
Loans Black Board Special 4.77% comparison rate (purchases only)
UBank UHomeLoan 4.87% comparison rate (refinance only)
iMortage Essential 4.97% variable rate (5.01% comparison rate)
Should I fix?
For those who prefer the steadfast repayment plan but are too sassy to pass up interest rates under 5%, check out these fixed rate options between 1 to 3 years.
1 year, AMP basic fixed rate loan 4.99% (6.49% comparison rate only)
2 year, eMoney 4.69% (5.28 comparison rate only)
3 year MEBank 4.99% (5.85% comparison rate only)
Bonus incentives galore!
But the banks aren’t stopping with low interest rates, check out these enticing extras being thrown in to grab your attention.
Bankwest online home loan – no application fee for a limited time save $695
HSBC Home Value Loan – Apply before 31 May and pay $0 establishment fee save $600
CUA 1 year introductory variable rate – 5.47% for 12 months then 5.85% 0.38% discount (5.87% comparison rate)
RAMS – Refinance with any RAMS loan before the end of May get $1000 cash back
Right now Australians are racing ahead on their repayments and saving thousands of dollars. Be sure to jump on the ball and don’t let the opportunity pass you by.
What home loan bargains have you seen recently? Leave your comment below.