Monday moneyvator: Give yourself some home loan happiness

Monday moneyvator: Give yourself some home loan happiness

Here at Mozo, we’ve been keeping a close eye on the home loan market and have noticed with the spring property season in full swing, mortgage lenders are slashing their interest rates to new lows.

Some of the most competitive variable interest rate deals are offered by providers that are run entirely online. For instance, challenger brand iMortgage is now offering the lowest variable rate at a competitive 3.84% with its Fusion 80 home loan package (only available for owner occupiers).

When we compare this competitive headline rate to the average variable rates offered by the Big 4 banks, this is an interest rate difference of 1.00%. To really put things in perspective, that 1.00% rate difference equates to a significant saving of $20,640 over 10 years – think of all you could do with an extra $20k in your pocket!

Here’s a closer look at the lowest home loan rates available now:

Home Loan type Provider / loan Sept 2015
Lowest variable home loan rate iMortgage Fusion 80 3.84%
Lowest Big 4 variable home loan rate NAB Base Variable Rate Home Loan 4.15%
Lowest 3 year fixed rate Greater Building Society Discount Ultimate Home Loan 3.89%
Lowest 5 year fixed rate Freedomlend Fixed Home Loan 4.24%
The above rates are based on an 80% LVR loans of $300,000 to owner occupiers over a 25 year term as at 18/9/15.                                                       Source: Mozo.com.au

Tips for choosing a home loan

  • Check the comparison rate. While the headline rate is important, don’t forget to check what the comparison rate is, which will show you the ‘true’ cost of the loan by merging the common fees with the advertised rate.
  • Look for flexibility. Make sure you check that the loan doesn’t just come with a great rate but flexible features too. Some of the features to put on your shopping list could include an extra repayments facility which allows you to make additional payments for free and a redraw facility that lets you dip into those payments when you please.
  • Read reviews. There’s no better way to get the lowdown on a loan provider than by reading reviews from customers just like you. So head on over to our customer review section to see who gets the thumbs up on everything from features to fees.

Want to compare our entire home loan database to track down a great deal? Kick off your search here.

Monday moneyvator: Give yourself some home loan happiness was last modified: September 21, 2015 by Mozo

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  1. Yes, online home loan providers are making waves in the past months. But, you still have to equip yourself with proper knowledge before delving into a home loan. Remember, this kind of personal loan is a long-term loan and you’re investing on one of your most priced possession. It’s best to read reviews, compare among other online lending firms, and never forget to drop by a bank to check their interest rates.

    It’s best to take your time in deciding for a big loan so you won’t get caught up in piling interest rates or even get caught up on missed repayment schedule. Purchasing a home encapsulates big financial responsibilities so you be better be well equipped with fund resource and knowledge resources.

    Reply
    1. Hello, I am Julie 62 years young have a wonderful husband Barry & have only lived in Queensland for 2 years, prior to that we lived in Darwin for 35 years. We have 6 grandchildren who all live interstate. I am not very well at the moment and as we are pensioners we are living on Struggle Street. We cannot seem to find a cheap rental to suit out budget. It is with great sadness that I cannot afford to buy much for the grandchildren. I am not asking for pity just understanding & I am sure there are people worse off than me. We cannot afford a home loan but a small personal loan would be very handy. Wishing all that read this a Very Safe & Merry Xmas & A Happy 2016.

      Reply

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