Hot home loans under 3%

Ceyda Erem

03 Jul 2019

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With the RBA cutting the cash rate to a historical low of 1.00%, there’s never been a better time to get picky about your home loan, especially with some lenders slashing rates to below 3.00%! 

So if you’ve been holding out for the right home loan, we’ve rounded up some hot home loan deals to get your search off to a smashing start. 

Variable rate home loans

Promoted

Well Home Loans Well Balanced
  • Low 2.97% variable rate (2.99% comparison rate*)

  • 2019 Mozo Experts Choice Award winner for Best New Home Loan

  • Free extra repayments and redraw facility

Life is all about balance and Well Home Loans seem to agree with its Well Balanced Home Loan. With this home loan, borrowers will enjoy a low 2.97% variable rate (2.99% comparison rate*) and no ongoing fees. And aside from the low rate, borrowers can save even further on interest by make additional repayments, as well as redraw these repayments whenever they need to. Just keep in mind you will need a 20% deposit to apply and there are a few fees to consider, like the $250 application, $385 legal and $150 settlement fee.

Promoted

Homestar Star Essentials Home Loan
  • Super low 2.99% variable rate (2.99% comparison rate*)

  • Split account option

  • Free extra repayments and redraw

Whether you’re buying your first home or are looking to refinance, the HomeStar Star Essentials Home Loan could be the pick for you. With this loan, you’ll be able to take advantage of the super low 2.99% variable rate (2.99% comparison rate*), but you’ll need a 20% deposit to apply. Fees are kept to a minimum, as there are no application or monthly service fees, though there is a $535 discharge fee. However, refinancers borrowing between $200K to $850K are able to have this fee waived. And with the free extra repayments and redraw facility, you’ll be well on your way to paying off your loan in no time.

Fixed rate home loans

Promoted

Bank of Queensland Fixed Rate
  • Low 2.99% fixed three year rate (4.19% comparison rate*)

  • Borrow with a 5% deposit

  • $1,000 cash back offer (until 30 July 2019)

But if you prefer the security of a fixed rate, you might want to consider the Bank of Queensland Fixed Rate. Aside from offering a low 2.99% fixed three year rate (4.19% comparison rate*), borrowers who apply and are approved by 30 July 2019 will also receive $1000 cash back! And if you’re a borrower struggling to come up with a 20% deposit, rest easy knowing you’ll be able to apply for the Fixed Rate home loan with a 5% deposit. You’ll also be able to take advantage of the free extra repayments facility (up to $5,000 annually) and split your loan to enjoy a low variable rate. Just keep in mind, you will have to factor in the $300 application and $10 monthly service fee. 

Promoted

UBank UHomeLoan
  • Low 2.99% fixed one year rate (3.86% comparison rate*)

  • Free extra repayments (up to $20,000 annually)

  • Split account available

Last but certainly not least on our list is the UBank UHome Loan. Borrowers with a 20% deposit will be able to apply for the 2.99% fixed one year rate (3.86% comparison rate*) and pay no service fees, though there is a $395 application fee to consider. Free extra repayments of up to $20,000 are available every year, just remember there is no redraw facility. The UBank UHome Loan also received two 2019 Mozo Experts Choice Awards in the Fixed Rate and Investor Fixed Home Loan categories, so you know you’ll be onto a winner. 

*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.

And if you’d like to compare even more home loan options, head on over to our home loan comparison tool

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