Best home loans for January 2018: Mozo Editor’s picks

Best home loans january 2018 mozo experts content copy content

With the beginning of a new year comes the promise of a fresh start, especially for your finances. For most Australians their biggest current or future financial commitment will be a home loan, but how do you know that your mortgage is providing you with the best value?

That depends on your own situation, but one thing’s for sure -  whether you’re refinancing or buying your first home, it never hurts to be open to comparing and even making the switch to a better deal.

Think that could be you? Well the Mozo Editors have pulled together some of January’s standout offers so you can make getting a great home loan deal your top financial priority for 2018.

BIG BANK HOME LOAN DEAL

NAB Base Variable Rate Home Loan
NAB
  • 4.17% variable rate (4.21% comparison rate)

  • Borrow up to 95% LVR

  • No monthly fees

  • Free redraw facility and extra repayments

The Verdict

The Base Variable Rate Home Loan from NAB ticks both boxes when it comes to a budget-friendly home loan option for the smallest possible deposit. With a competitive 4.17% variable rate (4.21% comparison rate) and the potential to borrow up to 95% of the property’s value (for principal and interest repayments), this could be a great deal to help prospective homeowners get into the market. Plus with no monthly fees, you’ll also be able to keep more of your own money in your pocket, not to mention the option to make free extra repayments which could help you pay off your loan faster.

VARIABLE RATE HOME LOAN DEAL

HSBC Discounted Home Value Loan
HSBC
  • 3.59% variable rate (3.60% comparison rate)

  • Extra repayments and redraw facility at no extra cost

  • No application or ongoing fees

The Verdict

If you’re a prospective owner-occupier in the market for a competitive deal then boy, does HSBC have an enticing offer for you. Featuring a seriously low variable rate of just 3.59% (3.60% comparison rate), the Discounted Home Value Loan can help borrowers cut down their costs with no application or ongoing fees. The loan also comes with the ability to make extra repayments and a handy redraw facility - both at no added cost.

OFFSET HOME LOAN DEAL

ME Flexible Home Loan
ME
  • 3.74% variable rate (4.15% comparison rate)

  • 100% offset account

  • No application fee ($395 annual fee)

The Verdict

In the market for a home loan package that will give you all the bells and whistles as well a competitive 3.74% variable rate (4.15% comparison rate)? Well if you’re looking to borrow between $400,000 and $699,000 then the ME Flexible Home Loan Member Package with its 100% offset account and free redraw facility could be the option for you. While you won’t pay any application or settlement fees, there is an annual fee of $395. 

FIXED HOME LOAN DEAL

IMB Bank Fixed Home Loan
IMB Bank
  • 3.65% two year fixed rate (revert rate 4.69%, comparison rate 4.84%)

  • No application fee ($395.00 annual fee)

  • Free redraw facility and extra repayments

The Verdict

With a 3.65% fixed rate (comparison rate 4.84%) for the first two years, the IMB Fixed Home Loan Platinum Package provides repayment certainty for new owner occupiers looking to lock in a low rate for the early part of their loan. Along with the ability to make extra repayments and redraws for free, the IMB loan also offers borrowers a 10% discount for the first year on an IMB Home and Contents Insurance or Landlord's Insurance policy.

INVESTMENT HOME LOAN DEAL

Click Loans The Online Home Loan
Click Loans
  • 3.98% variable rate (3.98% comparison rate)

  • Free extra repayments and redraw options

  • No ongoing fees

The verdict

The Click Loans Online Home Loan boasts some serious value for investors, with a variable rate of just 3.98% (3.98% comparison rate) for loans up to $2 million. It also comes with additional perks like the option to make extra repayments, plus the potential to make free redraws should you need to dip into those extra funds. Just bare in mind that there is a maximum 70% LVR (Loan to Value Ratio), so you’ll need to come up with a decent deposit depending on the property you’re looking at.

*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.

^See information about the Mozo Experts Choice Home loans Awards