Best 2018 home loans for refinancers - Mozo Editors’ picks

Refinance home loan content

As the saying goes ‘if it ain’t broke, don’t fix it’ and while this may apply to many circumstances, your home loan isn’t one of them. And if you come to find that your rate is no longer competitive and that your loan doesn’t offer a range of features, it might be time to refinance.

Refinancing your home loan could help save you thousands over the life of your mortgage while giving you more flexibility with your repayments. But where do you start? Luckily, the Mozo Editors have dived into the home loan comparison tool and pulled out some of their top refinance picks for 2018.

Beyond Bank Low Rate Special Variable Home Loan
Beyond Bank
  • 3.73% variable rate (3.73% comparison rate*)

  • No upfront or ongoing fees

  • Free redraw and unlimited repayments

  • 100% offset account available

The verdict

At Beyond Bank, they’re not calling it the ‘special’ variable home loan for nothing. This loan features a 3.73% variable and 3.73% comparison rate and allows you to borrow up to 70% LVR. You won’t have to worry about any upfront or ongoing fees, while having free access to redraw and extra repayment facilities. Simply apply online and have a response within 2 hours - getting you on track with your mortgage in no time.

Click Loans The Online Home Loan
Click Loans
  • 3.64% variable rate (3.64% comparison rate)

  • Borrow up to 70% LVR

  • Free redraw and extra repayments (free up to $10,000 p.a)

  • No ongoing fees

The verdict

If you’re after a lender that puts you first, then you might want to know about ClickLoans. The Online Home Loan has a 3.64% variable rate along with a 3.64% comparison rate and ditches ongoing fees. But to make things a little more personal, you could have a tailor-made upfront rate within 30 seconds just by answering 8 quick questions on the ClickLoans website! Plus, you’ll be able to make free additional repayments, have an optional offset account and free redraws on your repayments.

Bank Australia Basic Home Loan Special
Bank Australia
  • 3.74% variable rate (3.75% comparison rate)

  • Flexible repayment schedule

  • Repayment holiday available

  • Redraw and extra repayments available

The verdict

It may be called the Basic Home Loan, but we think it’s anything but. With this loan, you’ll have a 3.74% variable rate and 3.75% comparison rate, plus,  there’s the option to fix your rate or split it between fixed and variable. There’s also a great deal of flexibility with this loan as you’ll be able to make your repayments on a schedule of your choosing - weekly, fortnightly or monthly, or take a repayment holiday altogether if you need a break from your loan.

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

  • Free extra repayments and redraw facility

  • $0 upfront fees

  • Borrow up to 80% LVR

The verdict

If you’re after a loan that was designed to keep up with your lifestyle, then look no further than ME Bank and its Flexible Home Loan Member Package. This is a loan with no upfront fees, free redraws, a 100% offset account and you’ll be able to borrow up to 80% LVR. When it comes to your rate, you do have the option to split your loan and make repayments at a fixed and variable rate. You can also rest easy knowing that if the unexpected did happen, you’ll be able to apply for a repayment holiday.

Aussie Select Basic Variable
  • 3.79% variable rate (3.80% comparison rate)

  • Borrow up to 80% LVR

  • Free extra repayments and redraw facility

  • Principal and interest type loan

The verdict

If we’re talking competitive, then you might want to check out Aussie and its Select Basic Variable. With the Select Basic Variable Home Loan, you’ll be offered a 3.79% variable rate and 3.80% comparison rate to be repaid over a fortnightly or monthly basis. While there is no offset account, you are able to redraw for free at anytime and make extra repayments on your loan. There’s also no application or ongoing fees - talk about low maintenance!

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

  • No annual or monthly fee

  • Borrow up to 95% LVR

  • Extra repayments and redraw facility

The verdict

But for those who like to stick with the big banks when it comes to their finances, we’ve got NAB and its Base Variable Rate Home Loan. While we should mention that there is a hefty $600 application fee, you won’t ever have to pay an annual or monthly fee over the course of your loan. As this is a bank home loan, there is a 4.17% variable rate - the highest rate in our list - and a 4.21% comparison rate, but you will be able to bring this rate down with its extra repayments feature.

*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.

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*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.