Best home loans of May 2018 - Mozo Editor’s picks

Ceyda Erem   |   08 May 2018

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May is officially upon us and so is the chillier weather. But while some shoppers score a bargain at the winter knitwear sales, many Aussies instead look to add a hot home loan deal to their shopping list.

So to kickstart your search for the perfect loan, our Mozo Editor has laid out some of the best home loan deals available in May, below.

Promoted

IMB Bank Budget Home Loan Special
  • 3.69% variable rate (3.69% comparison rate*)

  • Maximum 90% LVR

  • Free extra repayments and redraw facility

If you’re after a loan that keeps costs low, then check out the IMB Bank Budget Home Loan Special. Along with a 3.69% variable and comparison rate, you’ll be able to borrow up to 90% of the property’s value, but may have to pay Lenders Mortgage Insurance (LMI) to do this. Plus, there’s free extra repayments, a redraw facility and no upfront or ongoing fees! But what really makes the IMB Bank Budget Home Loan ‘special’ is the life-of-loan discount - an ongoing discount off the standard variable rate, so you’ll always be paying less. But hurry, this is a limited time offer!

Promoted

bcu OMG Home Loan
  • 3.79% variable rate (3.83% comparison rate*)

  • No ongoing fees

  • Free extra repayments

Get ready to say OMG for bcu and its OMG Home Loan. Featuring a 3.79% variable rate, you’ll be able to borrow up to $1 million to fund your dream home. This loan has no ongoing fees and a super simple online application process, helping you score pre-approval that’s valid for three months. And while there is a free extra repayments feature, you will have to pay a fee if you’d ever like to use the redraw facility.

Promoted

ME Flexible Home Loan
  • 4.14% 3-year fixed interest rate (5.04% comparison rate*)

  • Option to split loan between variable and fixed rates

  • Borrow up to 95% LVR

If it’s flexibility you’re after, then the ME Flexible Home Loan may be the answer. This loan features a 4.14% fixed interest rate for three years and a 5.04% comparison rate. And if you’re someone who likes a bit of everything, you’ll be happy to know that, with the Flexible Home Loan, you’ll have the option to split your loan and borrow with as little as a 5% deposit, however you may have to pay LMI. Throw in an extra repayments feature and you’ve got yourself a winner!

Promoted

UBank UHomeLoan
  • 3.74% 3-year fixed interest rate (4.01% comparison rate*)

  • No ongoing fees

  • Free extra repayments up to $20,000 p.a

Do you like having the security of a fixed rate? Then why not consider UBank and its UHomeLoan! This neat loan features a 3.74% 3-year fixed rate and a 4.01% comparison rate, plus no ongoing fees. And while you won’t have access to a redraw facility, you will be able to make extra repayments of up to $20,000 per annum. And did we mention that UBank won a 2017 Experts Choice Award for Australia’s Best Online Bank? How’s that for a quality provider!

Promoted

Newcastle Permanent Discounted Variable Home Loan
  • 3.64% variable rate (4.03% comparison rate*)

  • $0 discharge fee

  • Offset account available

If you like getting as much value as you can out of your financial products, then look no further than Newcastle Permanent and its Discounted Variable Home Loan. Along with the 3.64% variable rate, this loan is stuffed with value, offering free redraws, extra repayments and an offset account. There’s also no upfront or discharge fees, but just keep in mind that this loan does require a 20% deposit or you may have to pay Lenders Mortgage Insurance (LMI).

*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.

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