Are you in the market for a home loan this February? Whether you’re buying your first home, upgrading to a new place or on your fifth investment property, finding the right mortgage offer is key to starting your property search off on the right foot.
But there are a heap of options out there - so how do you know which one is right for you, and where to start looking for it? Well, our Mozo Editors have compiled this list of some of their top picks for the month as a jumping off point for your search.
Major Bank home loan
NAB Base Variable Rate Home Loan
4.17% interest rate (4.21% comparison rate*)
Borrow with as little as 5% deposit
Apply by 31 March 2018 and receive 350,000 NAB Rewards Points
If you’d rather stick with one of the big banks for your home loan, then there’s a tonne of value on offer with NAB’s Base Variable Rate Home Loan. Not only can you borrow up to 95% of the property’s value, but you’ll also have handy features like free extra repayments, a redraw facility and the chance to take a repayment holiday at your fingers. Plus, apply before 31 March and you can also bag a bunch of bonus rewards points when you take out a NAB Home Loan and Banking Bundle (T&Cs apply).
For those just starting out on their home loan journey, snagging a low rate is probably the first thing on your mind - and the HSBC Discounted Value Home Loan really delivers on that front! Along with the great low rate, you can also borrow up to $7,500,000 with as little as a 10% deposit, plus there are no upfront or ongoing service fees to worry about. You can choose weekly, fortnightly or monthly repayments, and there’s also the option to split your loan between fixed and variable rates if you want to.
Offset home loan
Newcastle Permanent Discounted Variable Home Loan
3.64% interest rate (4.03% comparison rate*)
Full offset account plus free extra repayments and redraw facility
No upfront application fee ($395 annual service fee applies)
Whether you’re buying your first home or upgrading, the Newcastle Permanent Discounted Variable Home Loan Premium Plus Package comes with all the bells and whistles you might want. With a full offset account, free extra repayments and redraw facility, a split rate option and the chance to take a repayment holiday on offer, you won’t miss out on features with this one. It’s available for loans beginning at $150,000, with at least a 20% deposit. You can also choose your repayment schedule to fit your budget.
Fixed 2 year home loan
ME Flexible Home Loan
3.84% fixed rate for 2 years (4.83% comparison rate)
Up to $30,000 in free extra repayments
No application or service fees (legal and valuation fees apply)
If you’d like the security of a fixed rate for the first part of your mortgage, then check out the ME fixed rate Flexible Home Loan. Along with a low fixed rate and no upfront application or ongoing service fees, this loan comes with the chance to make up to $30,000 in free extra repayments during the fixed rate period, which helps you save on interest. Plus you can also choose to make repayments weekly, fortnightly or monthly and you can split your loan between fixed and variable rates, for a little added flexibility.
No upfront application fee ($395 annual fee applies)
Borrow with as little as 10% deposit
The Greater Bank Discount Ultimate Home Loan Fixed Package lets you lock in a great rate and comes with no upfront application fee. It’s available for loans from $150,000, borrowing up to 90% of the property’s value. You’ll have the option to split your loan between fixed and variable rates, and you can make extra repayments, but there is a fee for doing so. The package also means you can pick up a fee free Greater Bank credit card and transaction account, plus score a discount on your Greater Bank insurance policies.
UBank UHomeLoan - Discount Offer for Investor
3.99% interest rate (3.99% comparison rate*)
Free extra repayments and redraw facility
No upfront or ongoing fees
Got your eye on an investment property in 2018? UBank was Mozo’s Experts Choice Best Online Bank in 2017, and with the no-fuss UHomeLoan, you can borrow up to $2 million with at least a 20% deposit, and pay no upfront application or ongoing service fees. There are handy features like free extra repayments, a redraw facility and the option to split your loan between fixed and variable rates on offer, plus the option to make repayments monthly, fortnightly or weekly.
*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.
Haven’t fallen in love with any of these options? No worries! Head over to our home loan comparison table to find some more competitive home loan deals.
*The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a home loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years, and applies only to this example. Different amounts and terms will result in different comparison rates. Full comparison rate schedules are available from lenders. Costs such as redraw fees or early repayment fees, and savings such as fee waivers, are not included in the comparison rate but may inﬂuence the cost of the loan.