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

Kelly Emmerton   |   15 Nov 2017

redactor/hero-images/13/Outbrain_Best_HL_Article_Image_June_2017_content.jpg

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. In fact, a typical borrower with a $300k loan could save a whopping $2,496 a year by switching from the average big 4 bank rate to the best on the market.

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

Promoted

loans.com.au Essentials Variable 80
  • 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

Promoted

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

Promoted

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

Promoted

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

Promoted

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

Promoted

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

Promoted

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.

*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 $150,000 over 25 years.

Want to compare more home loans?

View the latest mortgage rates from 80 lenders at Mozo's home loan comparison hub.

Mozo may receive advertising fees from the financial institutions, issuers of financial or credit products and third party advice providers that are shown on this page. These fees are based on a cost per click, cost per acquisition, or a fixed fee.