As the saying goes, ‘work smarter, not harder’, and paying off your home loan is no exception.
And if you’ve been on the hunt for a home loan that’s competitive, easy to manage and low on fees, we’ve got good news for you.
Online lender, loans.com.au have just launched their new home loan - the Smart Home Loan - which is now available to both buyers and refinancers.
The Smart Home Loan features a competitive 3.48% variable rate (3.50% comparison rate*), with a maximum LVR of 80%, which if you’re a first homebuyer, means you’ll need a 20% deposit to apply.
There are also no application, ongoing or exit fees with this home loan, making it a great cost cutting option for first homebuyers.
“Loans.com.au have a history of offering good value products to prospective homeowners - their 2018 Mozo Experts Choice Award win for Low Cost Home Loan is proof of that,” said Mozo Product Data Manager, Peter Marshall.
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Borrowers looking to apply for the Smart Home Loan will also be given the option of choosing either a weekly, fortnightly or monthly repayment schedule.
Extra repayments are also available with the Smart Home Loan, which could be good news for borrowers looking to cut down on interest wherever they can. And if they ever need those extra repayments back for whatever reason, there is a free redraw facility available.
However, it’s also worth mentioning that an offset account is not available with the Smart Home Loan and there is also a $300 settlement fee to consider.
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How the Smart Home Loan stacks up
With all the buzz surrounding the new loans.com.au Smart Home Loan, we thought it might be a good idea to pull out our home loan repayments calculator to show it compares to the average variable rate in the Mozo database.
If you took out a $400,000 loan, with an LVR of 80%, to be repaid with P&I repayments over 30 years with the current average variable rate in the Mozo database of 4.34%, your monthly repayments would total $1,989.
Now say you took out the same loan on the same terms but on the Smart Home Loan rate of 3.48%, your monthly repayments would drop to $1,792 - a monthly saving of $197 or, $2,364 a year.
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Securing yourself against a rate hike
But if you prefer the comfort of locking in your rate, but still want the perks of the Smart Home Loan, then you might also want to know about the Smart Home Loan Package, which has just had its 2 year fixed rate cut by 10 basis points, dropping from 3.89% to 3.79% (3.92% comparison rate*).
Investors looking to fix their rate for two years with the Smart Home Loan Package will also be able to take advantage of a rate cut of 10 basis points, from 3.89% to 3.79% (4.32% comparison rate*).
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And if you’d like to check out other home loan offers then head on over to our home loan comparison tool.