Now in their seventh year, the Mozo Experts Choice Awards are a place where we highlight the products out in the market, that we believe offer great value to Australians.
For the 2020 home loan awards, we analysed 436 home loans issued by 86 Australian financial institutions.
“With the huge movement in interest rates over the last 6 months, it’s more important than ever to find a home loan that is great value and suits your needs.” said Peter Marshall, Mozo Experts Choice Awards judge.
“As the RBA keeps slashing rates to their lowest ever, now’s the time to find a home loan that will keep more money in your pocket and help you pay off your home sooner.”
For details on how we crunched the numbers and determined our winners see our 2020 Mozo Experts Choice Awards Home Loans methodology report.
UBank has long made its name as the place to go if you want to get a home loan with a stand-out rate, but also offers a range of other day-to-day banking services. For people looking to take out their home loan with a combined deposit-taking institution, the judges found that UBank can’t be beaten.
Online lender Tic:Toc doesn’t only claim some of the fastest loan assessment software in the business, but also offers a range of loans to suit a wide variety of borrowers at some of the best prices in town. Scoring award wins in categories covering both owner occupiers and investors, and both variable rates and fixed rates, Tic:Toc had the edge for the second year in a row.
For this category the Mozo judges assessed 284 variable rate loans for owner occupier borrowers making principal & interest repayments looking to borrow 80% of the value of their property, and identified these as the lowest cost.
Of the 198 variable rate loans offering a 100% offset facility in our database, the Mozo judges found that these were the lowest cost.
To find the most competitive package loans the judges assessed 66 products. Judges identified those that were the lowest cost options, where the borrower could get a fee-free credit card and bank account with that same provider.
First home buyers often have less than a 20% deposit, so for this category we identified the lowest cost variable rate loans for those looking for a 90% LVR loan. The assessment included special offers that have been launched recently for borrowers taking advantage of the government’s First Home Loan Deposit Scheme.
To be considered in this category the lender has to offer at least 3 different fixed rate terms which resulted in 134 products being assessed. The judges calculated the annual cost of each fixed rate term offered and ranked them, then averaged the three best results.
This category identifies the leading combinations by the same lender for homeowners looking to split their loan between fixed and variable rates.
This award considered the 193 products available for investors that offered both principal & interest and interest only as an option. The winners below were found to be the lowest cost options.
For this award, we identified the lenders with the lowest costs over a range of fixed terms for investors. We assessed 113 options, calculating the annual cost of each fixed rate term offered, averaging the three best results. The calculation was performed using rates applicable to both principal & interest and interest only loans.
Loans considered for this award must only be available to homes that have been certified with a minimum level of environmental efficiency, of these we calculated the lowest cost option. The Bank Australia Clean Energy Home Loan not only has a great low rate, but is available for any home that achieves a NatHERS rating of 7 stars or higher.
The judges reviewed all the new home loans launched in the last year and decided Athena’s Variable Home Loan had the best combination of rate and features of those compared.
The Athena Variable Home Loan loan not only impressed the judges as the best new product launched in the last 12 months, but also for its innovation in looking after existing customers with its rate guarantee and loyalty bonus. Their promise is that existing customers get the same rates as new customers, and benefit from a loyalty discount that reduces the interest rate over time.
Running since 2014, the Mozo Experts Choice Awards recognise products that deliver exceptional value or benefits to consumers.
See our methodology report for more detailed information on how we performed product comparisons and determined the final winners for the Home Loan awards for 2020.
We aim to include most home loans in the market in the Mozo Experts Choice Awards. However, not every financial institution product on the market will be included in our review. Any product we review must be available in the market at the time of our analysis.
There is a reason why there are so many different categories of Mozo Experts Choice Awards in Home Loans. When you’re looking for a home loan you’ll want to think carefully about your options, depending on your deposit, repayment term, whether you’ll go fixed or variable, if you want an offset account, and much more.
If you want to learn more about the key features of home loans and the types of loans that are available, why not check out our range of helpful home loan guides?
The Mozo Experts Choice Awards are overseen by AJ Duncanson and Peter Marshall. AJ is Mozo’s Data Director. He is a data scientist and actuary, and has worked in financial services and product comparison for over 30 years. Peter has been in the industry even longer, and as Research Manager he leads the team of analysts that gather information and compare products every day, and that perform all the analysis behind the Mozo Experts Choice Awards.
Please get in touch with us to discuss by emailing or phoning our account management team on 02 9037 4368.