Australia's cheapest home loans unveiled

Mozo   |   03 Dec 2018

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Finding the right home loan could mean the difference between tens of thousands of dollars in interest saved over the life of a loan, but Aussie borrowers can be foreign for finding it hard to pick the best option given the mountain of different lenders and rates available.

Thankfully, with over 50 years of financial services experience between them, the Mozo experts have a serious knack for identifying great value loans. And they used it to compare 525 loans from 88 lenders in this year's Mozo Experts Choice Awards, to identify the best value options for Aussie borrowers.

So whether you’re refinancing, investing or looking to buy a new home, read on for some of the best, low rate home loans on the market to help you start saving today.


Mozo Experts Choice Winning Home Loans

Promoted

loans.com.au Essentials Variable 80
  • 3.64% variable rate (3.66% comparison rate*)

  • $0 application or ongoing fees

  • Unlimited free extra repayments and redraw facility

Our verdict

Looking for a loan that's easy on your wallet? Look no further than the loans.com.au Essentials 80. This low fee, low rate mortgage is jam packed with handy features like the option to make free extra repayments, a redraw facility, the chance to choose monthly, fortnightly or weekly repayments, and a split rate option. No wonder it took out a Mozo Experts Choice Award for Low Cost Home Loan!

Where do I get it? Head over to loans.com.au to find out more >>

Promoted

HSBC Discounted Home Value Loan
  • 3.59% variable rate (3.61% comparison rate*)

  • No upfront or ongoing fees

  • Borrow with as little as 10% deposit

Our verdict

HSBC has come out with a a great value home loan offer here, winning awards for Low Cost Home Loan and First Home Buyer Loan. Not only will you snag a super low interest rate and pay no application or service fees, but you can also take advantage of features like free extra repayments, a redraw facility and the option to split your loan between fixed and variable rates.

Where do I get it? Head over to HSBC to find out more >>

Promoted

Homestar Variable Rate Loan
  • 3.54% interest rate (3.59% comparison rate*)

  • 100% offset account plus free extra repayments and redraw

  • $0 application fee

Our verdict

For a home loan that comes with all the bells and whistles but won’t break the bank, check out Homestar’s Variable Rate Loan. It’s a very competitive offer comes with a full suite of features including free extra repayments, a redraw facility and a 100% offset account to help you save. This low rate option is available for loans under $750,000, with an LVR of 70%-80%, plus for a limited time you'll receive $900 cashback after you settle. What’s not to like?

Where do I get it? Head over to Homestar to find out more >>

Promoted

UBank UHomeLoan - Discount Offer
  • 3.59% variable interest rate (3.59% comparison rate*)

  • $0 annual or upfront application fee

  • Free extra repayments and redraw facility

Our verdict

With a super low interest rate, no fees to apply and no annual service fee, the UBank UHomeLoan is a great budget-friendly option that comes with the security of being backed by NAB. The low 3.59% rate is available for loans of $200,000 and more, and you can choose monthly, fortnightly or weekly repayments to suit your budget.

Where do I get it? Head over to UBank to find out more >>

Promoted

State Custodians Low Rate Home Loan with Offset
  • 3.68% variable rate (3.69% comparison rate*)

  • No application or ongoing service fees (valuation fee applies)

  • Full offset account, plus free extra repayments and redraw facility

Our verdict

With wins in both the Offset Home Loan and Best First Home Buyer Loan categories, the State Custodians Low Rate Home Loan with Offset is a wallet friendly way for young Aussies to break into the property market. If you’re after a low rate, a suite of flexible features and no ongoing fees then this one might be the mortgage for you.

Where do I get it? Head over to State Custodians to find out more >>

Promoted

NAB Base Variable Rate Home Loan
Our verdict

Like the idea of grabbing a competitive variable rate deal but still want to stay with a major bank? The Base Variable Rate Home Loan Special Offer from Experts Choice Award Winner NAB could be just the ticket, with a competitive interest rate and no ongoing fees. Plus, you’ll be able to make free extra repayments, use a redraw facility and even take a repayment holiday.

Where do I get it? Head over to NAB to find out more >>

Promoted

Virgin Money Reward Me Variable Rate Home Loan
  • 3.68% variable interest rates (3.82% comparison rate*)

  • Earn 20,000 Velocity Points for every $100,000 borrowed

  • Free extra repayments and offset facility

Our verdict

Want a home loan that can also bag you a tonne of rewards points? With the Virgin Money Rewards Me home loan, not only will you get a competitive loan with a bunch of great features, but you’ll also snag 20,000 Velocity Points for every $100,000 you borrow at the start of your loan, plus an extra 1,000 Velocity Points every month of your loan and 30,000 Velocity Points every 3 years when your loan balance remains above $50,000. That’s what we call a sweet deal!

*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.

This is just a selection of our Mozo Experts Choice Home Loan winners. Head over to our dedicated Awards page if you want to see the full list of winners.

Want to compare more home loans? View the latest mortgage rates from 80 lenders at Mozo's home loan comparison hub.

The Mozo Experts Choice Awards recognise products that deliver exceptional value or benefits to consumers. Our judges base their decision on hard-nosed calculations of value to the consumer, using Mozo’s extensive product database and research capacity.  Product providers don’t pay to be in the running and we don’t play favourites. Award winners may choose to purchase a licence to use their award in their own marketing and may choose to list products on the Mozo website in a way that may generate revenue for Mozo.

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