4 things banks will never tell home loan customers

Mozo

14 Aug 2019

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Have you ever wondered what the big banks aren’t telling you? When it comes to your home loan, the big banks don’t want you to look too hard or ask too many questions because you might find out something that will cost them and save you thousands of dollars over your lifetime.

The fact is with official interest rates at all time lows there has never been a better time to hunt for a home loan deal. There’s also never been a better time to know these four things the big banks won't tell you: 

1. If you phone them up and ask for a better interest rate you'll likely get one

2. They'll often give new customers a better deal (instead of rewarding you for being a loyal customer)

3. Switching to a cheaper lender could save you tens of thousands over the life of your loan

4. Remaining loyal to one bank instead of regularly comparing your options could cost you a small fortune 

So don’t be conditioned by the big banks into thinking you're just lucky to get a loan. The reality is that there are dozens of smaller lenders out there waiting to welcome you with super low rates that could save you thousands. In fact, choosing the best value home loan over the average big bank loan could save a typical owner occupier borrower with a $400,000 mortgage more than $72,000 over the life of the loan.

Take a look at some of the top home loans on the market below and see if you could switch and save. 

LOW RATE HOME LOANS AUGUST 2019 - rates updated daily

  • Promoted

    loans.com.au

    3.03% p.a. variable

    3.05% p.a.

    $1234

    Product details Close details
    Smart Home Loan

    A low-rate home loan that could save you thousands. No application or ongoing fees. Unlimited additional repayments. Unlimited free redraws with no minimum redraw amount, Limited time only.

    • 3.03% p.a. variable

    • 3.05% p.a.

    • $520

    • $0.00

    • $0.00

    • yes - free

    • yes - free

    • no

    • 80.00%

    • $50,000

    • $1,000,000

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Smart Home Loan

  • Promoted

    UBank

    3.09% p.a. variable

    3.09% p.a.

    $1234

    Product details Close details
    UHomeLoan - Discount Offer

    One of Australia's leading digital banks. Easy & fast to apply. Free redraw with flexible repayments. Min. 20% deposit required. Low rate and no bank fees (on variable loans). Winner of a Mozo Experts Choice Award 2019 in the Low Cost Home Loan category.^

    • 3.09% p.a. variable

    • 3.09% p.a.

    • $0

    • $0.00

    • $0.00

    • yes - free

    • yes - free

    • no

    • 80.00%

    • $200,000

    • -

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the UHomeLoan - Discount Offer

  • Promoted

    Suncorp

    3.29% p.a. variable

    3.30% p.a.

    $1234

    Product details Close details
    Back to Basics Special

    No monthly account keeping fee, no ongoing annual fee and no loan establishment fee on new lending of $150,000 or more. Only 10% deposit required. $1500 cashback offer for refinancers of eligible loans more than $250,000 with LVR less than 80%.

    • 3.29% p.a. variable

    • 3.30% p.a.

    • $0

    • $0.00

    • $350.00

    • Yes - free

    • first redraw per month free

    • no

    • 90.00%

    • $150,000

    • -

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    • Receive $1,500 when you refinance an existing loan of $250,000 or more. Apply by 30 September 2019 and settle by 28 December 2019.

    Read our Mozo Review to learn more about the Back to Basics Special

  • Promoted

    Homestar

    2.99% p.a. variable

    3.02% p.a.

    $1234

    Product details Close details
    Star Essentials Home Loan

    One of the lowest home loan rate in town packed with essential features. No application or ongoing fees. Unlimited additional repayments with free online redraws. Min. loan size $150k, no construction loan.

    • 2.99% p.a. variable

    • 3.02% p.a.

    • $596

    • $0.00

    • $535.00

    • yes - free

    • yes - free

    • no

    • 80.00%

    • $150,000

    • $850,000

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Star Essentials Home Loan

  • Promoted

    HSBC

    3.27% p.a. variable

    3.28% p.a.

    $1234

    Product details Close details
    Discounted Home Value Loan

    Unlimited free extra repayments and no ongoing service fees when you apply by 31 July (T&C’s apply). Get help with the application process with an HSBC relationship manager. Winner of a Mozo Experts Choice Award 2019 in the Low Cost Home Loan category.^

    • 3.27% p.a. variable

    • 3.28% p.a.

    • $150

    • $0.00

    • $300.00

    • yes - free

    • yes - free online

    • no

    • 90.00%

    • $50,000

    • $7,500,000

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Discounted Home Value Loan

  • Promoted

    Hot Deal Earn 300,000 bonus Qantas Points when you apply by 31 August

    ANZ

    3.38% p.a. variable

    3.42% p.a.

    $1234

    Product details Close details
    Simplicity PLUS Special Offer LVR <80%

    Competitive low rate. No upfront or monthly fees. Flexibility to make extra repayments and redraw. Plus, score 300,000 bonus Qantas Points when you apply for a home loan over $300,000 by 31 August 2019, and settle by 31 Jan 2020. Minimum 20% deposit required.

    • 3.38% p.a. variable

    • 3.42% p.a.

    • $0

    • $0.00

    • $160.00

    • yes - free

    • yes

    • no

    • 80.00%

    • $50,000

    • -

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    • Apply for a home loan over $300,000 by 31 August 2019, and settle by 31 Jan 2020 to earn 300,000 Qantas Points.

    Read our Mozo Review to learn more about the Simplicity PLUS Special Offer LVR <80%

  • Promoted

    Well Home Loans

    2.97% p.a. variable

    2.99% p.a.

    $1234

    Product details Close details
    Well Balanced

    Well Balanced home loan is a low rate home loan with free online redraw and no valuation fee. Purchase, Refinance or Equity Release purposes allowed. Best New Home Loan in Mozo Experts Choice Awards 2019.^

    • 2.97% p.a. variable

    • 2.99% p.a.

    • $785

    • $0.00

    • $300.00

    • yes - free

    • yes - free

    • Optional - $10 per month

    • 80.00%

    • $200,000

    • $2,000,000

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Well Balanced

  • Promoted

    Bank of Queensland

    2.99% p.a.
    fixed 3 years

    4.09% p.a.

    $1234

    Product details Close details
    3 Year Discount Fixed Rate

    $1,000 cashback for first home buyers. Apply by 31 August 2019. Minimum loan amount of $300k. 20% deposit needed. Free additional repayments up to $5,000 per year.

    • 2.99% p.a.
      fixed 3 years

    • 4.09% p.a.

    • $450

    • $10.00 monthly

    • $320.00

    • yes - free up to $5,000 p.a

    • no

    • no

    • 80.00%

    • $300,000

    • -

    • Fixed

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the 3 Year Discount Fixed Rate

*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. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for the amount and term you entered.

**Initial monthly repayment figures are estimates only, based on the advertised rate, and a loan of $500,000 repaid over 25 years. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

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