Australia's home loan market is heating up for the Spring property season as lenders fight it out to win over new borrowers with a bumper crop of sharply priced home loan specials, from discounted rates to cashback deals and fee waivers.
In a bid to stem the flow of value-hunting borrowers to cheaper non-bank and online lenders, ANZ, Suncorp, HSBC and Bank of Queensland have all launched extremely competitive new home loan deals in recent weeks, even as some non-bank lenders continue to cut rates to new lows.
ANZ and HSBC are offering special discounted variable rates under 3.50%, while Suncorp is going a step further with $1,500 cashback on offer for refinancers. Bank of Queensland is tempting borrowers with rock bottom fixed rates under 3.00%.
Read on for the Mozo Expert low-down of some of the top home loan deals currently on offer from banks and challenger lenders and see if now could be a good time to start saving on your home loan.
Top Home Loan Specials - September 2019
ANZ Simplicity PLUS Special Offer
Special 3.38% variable rate (3.42% comparison rate*)
No upfront or monthly fees
Flexibility to make extra repayments and redraws
This cracking loan deal from ANZ delivers a super competitive variable rate and $0 upfront or monthly fees, plus a host of flexible features like free extra repayments, redraw facility, the option to take repayment holidays and a split account. So if you like the idea of a competitively priced, flexible loan from a big bank, this could be the loan for you. But hurry, this discounted variable rate deal won't last for long!
loans.com.au Smart Home Loan 80
Super low 3.03% variable rate (3.05% comparison rate*)
The ultra-low rate Smart Home Loan from popular online lender loans.com.au is guaranteed to get borrowers switching this Spring. This is a back-to-basics mortgage that could save you thousands, with all the features you want and none you don’t. You can make unlimited extra repayments and unlimited free redraws with no minimum redraw amount, plus they've done away with application and ongoing fees too.
Suncorp Back to Basics Special
3.18% variable rate (3.19% comparison rate*)
No establishment or ongoing account fees
$1,500 cashback for refinancers - apply by 30 September
Suncorp is turning heads with this low rate home loan that saves you on fees as well. There are no ongoing fees or establishment fee on loans of $150,000 or more, plus you can make unlimited extra repayments and redraw as cashback. You can apply online for pre-approval and book an appointment with a loan specialist. Plus, refinancers borrowing at least $250,000 with a 20% deposit can score $1,500 cashback - just combine your new loan with a Suncorp Everyday Basics bank account.
Bank of Queensland Discount Fixed Rate
2.99% fixed rate for 3 years (3.79% comparison rate*)
Free extra repayments up to $5,000 each year
Choice of weekly, fortnightly or monthly repayments
This killer fixed deal from BOQ offers the chance to lock in a sub 3.00% rate for three years, plus the flexibility to pay off your loan faster by making free extra repayments up to $5,000 each year. You can choose to make weekly, fortnightly or monthly repayments to make budgeting easier. To apply for this loan, you'll need a minimum deposit of 20% and a minimum loan amount of $300K.
HSBC has come out with a a great value home loan offer here, winning 2019 Mozo Experts Choice awards for Low Cost Home Loan and First Home Buyer Loan. Not only will you snag a great interest rate and pay no application or service fees, but you can also take advantage of features like free extra repayments, redraw and a split loan facility. Plus you'll get your own relationship manager to help you through the application process.
*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.