Australia’s 7 best home loans of 2017 (for every borrower)
15 Nov 2017

If there’s one thing every Aussie home borrower should do this Spring, it's to make sure you’ve got the best value home loan available. Why? Here's the reason...
The gap between the best and worst home loan rates on the market is widening, as lots of lenders cut rates to entice new borrowers while others sit back and do nothing. If your lender hasn't cut rates, you could be missing out on big savings.
The Mozo money experts have put together our top picks of some of the best home loans in the market right now, so read on and make saving money on your mortgage your top financial priority.
BEST VARIABLE RATE HOME LOAN
loans.com.au Essentials Variable 90

3.52% p.a. variable rate (3.54% comparison rate*)
No monthly fees (upfront fees apply)
Split loan facility gives you up to 5 free splits
Free redraws with no minimum
Our verdict
Online lender loans.com.au consistently offers some of the lowest home loan rates on the market and its Essentials Variable 80 is hard to beat for pure value. It’s available to Owner Occupiers with an LVR (loan to value ratio) under 80%. A great pick if you’re after a super cheap variable rate, don’t need an offset account and are happy to do the loan application legwork online.
BEST MAJOR BANK HOME LOAN
HSBC Discounted Home Value Loan

3.59% variable rate (3.60% comparison rate*)
$0 upfront or ongoing fees
Borrow with as little as 10% deposit
Our verdict
With a rock bottom rate and no fees, the HSBC Home Value Loan is a great option for frugal borrowers. Available for amounts starting from $50,000, you can borrow up to 90% of the property’s value - making it easier for young borrowers to get into the market. Add to that a range of great features including free extra repayments, free redraw facility and the option to split your rate, and it makes for a deal that’s hard to pass up.
BEST LOW DEPOSIT HOME LOAN
RACQ Bank Mortgage Saver Special

3.62% p.a. variable rate (3.62% comparison rate*)
Borrow up to 95% of the property's value
No upfront or ongoing fees
Our verdict
The RACQ Mortgage Saver Special not only allows you to borrow with as little as a 5% deposit, making it easier for borrowers to break into the market, but it also makes it super easy to pay off your mortgage quicker, with a suite of money-saving features. Cash in on free extra repayments, a redraw facility and the chance to take a repayment holiday to help manage your loan how you like it.
BEST OFFSET HOME LOAN
State Custodians Low Rate Home Loan with Offset

3.54% p.a. variable rate (3.57% comparison rate*)
No ongoing or application fees (but you will pay a valuation fee)
Full offset account, free extra repayments and free redraws
Our verdict
The State Custodian Breathe Easy loan will be a breath of fresh air for borrowers looking to reduce the interest they pay on their mortgage. Available to Owner Occupiers borrowing up to 80% of the property’s value, this loan comes with an offset account attached to help you save a tonne of money - in fact it won a Mozo Experts Choice Award for Best Value Offset Home Loan.
BEST 1 YEAR FIXED HOME LOAN
Bank Australia Basic Home Loan

3.89% fixed rate for 1 year (3.91% comparison rate*)
Borrow with as little as 5% deposit
Option to split your loan between fixed and variable rates
Our verdict
For borrowers wanting to lock in a rate for a short time, the Bank Australia Basic Home Loan offers great value. From the low interest rate to the fact that there are no ongoing or upfront fees to worry about, this one is easy on your hip pocket. Plus, Bank Australia is the Mozo Experts Choice Australia’s Best Bank winner for 2017, so you can’t rest assured you’re in good hands.
BEST 2 YEAR FIXED HOME LOAN
Heritage Bank Fixed Loan

3.79% fixed rate for 2 years (4.99% comparison rate*)
No upfront application fee (monthly service fee applies)
Borrow up to 95% of the property’s value
Our verdict
If you’re looking to lock in a great rate for the next couple of years, check out the Heritage Bank Fixed Loan. It comes with free extra repayments and a partial offset account, lus a redraw facility, though a fee does apply for using this. There’s also the option to choose monthly, fortnightly or weekly repayments and split your loan between fixed and variable rates for the best of both worlds.
BEST PACKAGED HOME LOAN
Newcastle Permanent Discounted Variable Home Loan

3.64% variable interest rate (4.03% comparison rate*)
No upfront fee ($395 annual package fee)
Features including a full offset account, free extra repayments and redraw facility
Our verdict
If you’re hunting for a mortgage with plenty of flexible, money-savvy features then look no further. With the Newcastle Permanent Discounted Variable Premium Plus Package, you can save on interest with a full offset account, and by making fee-free extra repayments and choose your repayment frequency. Add to that a low rate and no upfront fees and it’s no wonder this loan is a Mozo Experts Choice winner.
^See information about the Mozo Experts Choice Home loans Awards
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