If saving money on your home loan in 2020 is what you’re after, then you've come to the right place. Discovering a great value home loan could mean the difference between tens of thousands of dollars saved in interest over the course of your loan, but in practice it can be hard to find the best option amongst the dozens of different lenders and rates on the market.
That's why each year, the comparison experts at Mozo put their combined 50 years of financial services experience to use to identify the best value home loan options for Aussie borrowers. Our experts compared 436 loans from 86 lenders and awarded just the top 10% of loans with a Mozo Experts Choice Award^.
Read on for some of the top low rate home loans on the market and free yourself from your mortgage shackles faster this new year.
Mortgage Crushing Home Loans
loans.com.au Smart Home Loan 80
2.48% variable rate (2.50% p.a. comparison rate*)
$0 application or ongoing fees
Unlimited free extra repayments and redraw facility
Popular online lender loans.com.au is a perennial award winner, and with offerings like the Smart Home Loan 80 it's not hard to see why. This low rate, low fee home loan is packed with useful features like free redraw, the ability to make free extra repayments and a split loan option.With all this value on offer and no pesky fees to boot, it's no surprise the Smart Home Loan took out a Mozo Experts Choice Low Cost Home Loan Award for 2020.
With a low interest rate, no fees to apply and no annual service fee, the UBank UHomeLoan is a great budget-friendly option for refinancers that comes with the security of being backed by NAB. The competitively low variable and comparison rate is available for loans of $200,000 plus with a minimum deposit or 20% or more, and you can choose monthly, fortnightly or weekly repayments to suit your budget. No wonder it was a slam dunk for a Best Low Cost Home Loan Award.
Online lender Athena is shaking up home loans with a customer first approach and some of the best value mortgages on the market. The Athena Home Loan has one of the lowest variable rates around and no application, valuation or ongoing fees. On top of that, to reward borrowers for paying down their home loan, Athena will now automatically lower your rate as you pay down your loan. Available to refinancers and first home buyers with 40% deposit, living in a capital or major regional city.
1.99% fixed rate for 4 years (2.90% comparison rate*)
Bonus $3000 cashback for refinancers
Mozo People's Choice Awards Winner 2020
Boasting an attractively low fixed rate for a 4 year term, the Fixed Rate Home Loan from Bank of Queensland could be the ideal option for homebuyers wanting repayment security. And if the crazy-low fixed rates weren’t enough, borrowers have the freedom to make free extra repayments (up to $5,000/year). What’s more, refinancers will score a bonus $3000 when they apply by December 19. Plus, Bank of Queensland took out a 2020 People's Choice Award.
Virgin Money Special Offer Reward Me Fixed Rate Home Loan
2.04% fixed rate for 3 years (2.73% comparison rate*)
If attractively low rates are your thing, then the Reward Me Fixed Rate Home Loan from Virgin Money might just be your match. With super-low fixed rates starting from 2.04% (2.73% comparison rate*) for a 3 year term, you’ll have the stability of knowing exactly how much you’ll be paying every cycle. And if the crazy-low fixed rates weren’t enough, refinancers will also score a bonus $3000 cashback when you switch your loan to Virgin Money. Available to borrowers with a 20% deposit or more.
Want to lock in an ultra low home loan rate but loathe the hassle of a long home loan application process? Calling UBank to the rescue! The UBank 3 year fixed rate UHomeLoan could be a great choice for borrowers who like the stability of a fixed rate and a super-speedy application process. It comes with conveniently flexible repayment options and the ability to make free extra repayments up to $20,000 each year so you can pay off your loan faster.
This competitive 2 year fixed rate home loan lets you guarantee your monthly repayments while still taking advantage of flexible features like the ability to make free extra repayments up to $10,000 a year. You can split your loan between fixed and variable rates, and as an added bonus there are no application or ongoing fees to pay. You'll even get a free relationship manager to guide you through the application process. Available to borrowers with a 20% deposit or more.
*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.
Want to compare more home loans? View the latest mortgage rates from over 80 lenders at Mozo's home loan comparison hub.
^This is just a selection of our Mozo Experts Choice Home Loan winners, announced in 2020. Head over to our dedicated Awards page if you want to see the full list of winners.
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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