Christmas comes early for borrowers with heaps of home loan rate cuts
Kelly Emmerton | 20 Nov 2017
Key points
First home buyers and refinancers are the big winners in recent rate cuts
30 lenders have cut variable rates for principal and interest borrowers since October
70 lenders are now offering variable rates under 4.00%
The festive season is fast approaching, and lenders are certainly getting into the Christmas spirit, with 30 lenders lowering rates on variable rate home loans since the beginning of October, Mozo data shows.
“First home buyers and refinancers making principal and interest repayments are on the Nice list this year, with a tonne of ultra competitive rates on offer for these borrowers,” said Mozo Director Kirsty Lamont.
Among the lenders reducing rates, the average rate cut was 15 basis points, while one generous lender cut by more than 5 times that amount. There are now a massive 70 lenders in Mozo’s database offering up variable rates under 4.00% on principal and interest home loans.
“These rate cuts have come at a really great time for those looking to get into the property market, with cooling prices and stamp duty exemptions in some major markets making conditions much more welcoming for first time buyers,” said Lamont.
“And for owner-occupiers who already have a mortgage, this presents a perfect opportunity to re-evaluate the deal you’re getting and jump on a better rate.”
Home loan comparisons on Mozo - rates updated daily
- loans.com.au
Essentials Variable 80
Owner Occupier, Principal & Interest
3.64% p.a. variable
3.66% p.a.
A low-rate home loan that could save you thousands. No monthly or ongoing fees. Unlimited additional repayments. Unlimited free redraws with no minimum redraw amount
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3.64% p.a. variable
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3.66% p.a.
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$520
-
$0.00
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$0.00
-
yes - free
-
yes - free
-
no
-
80.00%
-
$50,000
-
$2,000,000
-
Variable
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Principal & Interest
-
Owner Occupier
-
Weekly, Fortnightly, Monthly
Details Close
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- Aussie
Select Basic Variable
LVR<80%, Owner Occupier, Principal & Interest
3.69% p.a. variable
3.70% p.a.
A competitive rate with no ongoing fees. Reduce interest by making additional payments.
-
3.69% p.a. variable
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3.70% p.a.
-
$330
-
$0.00
-
$535.00
-
yes - free
-
yes - free
-
no
-
80.00%
-
$100,000
-
$5,000,000
-
Variable
-
Principal & Interest
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Owner Occupier
-
Fortnightly, Monthly
Details Close
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- NAB
Base Variable Rate Home Loan
Owner Occupier, Principal & Interest
3.69% p.a. variable
3.73% p.a.
$1,250 BONUS WITH AN ELIGIBLE NAB HOME LOAN BANKING BUNDLE*. Low ongoing rate. Free extra repayments and redraw facility. Only 5% deposit and no annual or monthly fees.
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3.69% p.a. variable
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3.73% p.a.
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$600
-
$0.00
-
$350.00
-
yes - free
-
yes
-
no
-
95.00%
-
$20,000
-
-
-
Variable
-
Principal & Interest
-
Owner Occupier
-
Weekly, Fortnightly, Monthly
Details Close
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- UBank
UHomeLoan - Discount Offer
Owner Occupier, Principal & Interest
3.59% p.a. variable
3.59% p.a.
A low rate Home Loan with no bank fees on variable rate loans. Easy & fast to apply. Choose between flexible repayments and make extra repayments for free on a variable rate home loan.
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3.59% p.a. variable
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3.59% p.a.
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$0
-
$0.00
-
$0.00
-
yes - free
-
yes
-
no
-
80.00%
-
$200,000
-
$699,999
-
Variable
-
Principal & Interest
-
Owner Occupier
-
Weekly, Fortnightly, Monthly
Details Close
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- Newcastle Permanent
Discounted Variable Home Loan
Owner Occupier, Principal & Interest
3.72% p.a. variable
4.12% p.a.
Experts Choice - Australia's Best Customer-Owned Banking & Home Lender of the Year 2018
-
3.72% p.a. variable
-
4.12% p.a.
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$0
-
$395.00 yearly
-
$0.00
-
yes - free
-
yes - free
-
yes
-
90.00%
-
$150,000
-
-
-
Variable
-
Principal & Interest
-
Owner Occupier
-
Weekly, Fortnightly, Monthly
Details Close
-
- State Custodians
Low Rate Home Loan with Offset
LVR<80%, Owner Occupier, Principal & Interest
3.68% p.a. variable
3.71% p.a.
A Low Rate Home Loan with a $0 Application Fee, Free Redraws & Extra Repayments
-
3.68% p.a. variable
-
3.71% p.a.
-
$286
-
$0.00
-
$300.00
-
yes - free
-
yes - free
-
yes
-
80.00%
-
$100,000
-
$2,000,000
-
Variable
-
Principal & Interest
-
Owner Occupier
-
Weekly, Fortnightly, Monthly
Details Close
-
- ME
Flexible Home Loan
Owner Occupier, LVR<80%, Principal & Interest
3.69% p.a. variable
4.11% p.a.
A flexible Home Loan with Member Package for Owner Occupiers including a low rate, redraw and offset. Annual fee $395. Experts Choice - Australia's Best Bank 2018.
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3.69% p.a. variable
-
4.11% p.a.
-
$0
-
$395.00 yearly
-
$300.00
-
yes - free
-
yes - free
-
yes
-
80.00%
-
$400,000
-
$699,999
-
Variable
-
Principal & Interest
-
Owner Occupier
-
Weekly, Fortnightly, Monthly
Details Close
-
What to look for in a low rate home loan
A competitive comparison rate. When you’re comparing low rate loans, make sure to take a look at the comparison rate, as well as the headline interest rate. “The comparison rate reflects fixed fees and the interest rate, so it gives you a more accurate idea of what a loan will really cost you,” explains Lamont. A low interest rate paired with a high comparison rate can mean you’ll be up for a bunch of hefty fees!
Key money-saving features. Full feature home loans are generally more expensive than their no-frills counterparts. So to keep your mortgage rate low, choose an option that includes the features you will use and not the ones you won’t. “Pick and choose the extra features you’ll really use. For example, an offset account can save you heaps, but there’s no point paying extra to have it if you don't actually use it,” says Lamont.
An LVR that suits your budget. Some of the lowest rates around are reserved for borrowers with a low loan-to-value ratio - meaning a bigger deposit. So the more you can save for a home loan deposit, the more likely you will be able to snag a rock bottom rate and save on interest. “One thing to keep in mind is that if you have less than a 20% deposit, you’ll probably wind up paying Lender’s Mortgage Insurance as well, which can add thousands of dollars onto your home loan bill,” says Lamont.
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