Is 2019 the year to ditch the big banks in search of a better home loan?

Ceyda Erem

10 Jan 2019

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While there’s no admirable quality like loyalty, when it comes to the big banks, it pays to be promiscuous.

According to recent Mozo research, the average variable rate for a basic loan without an offset account for the big banks is 3.89%, with monthly repayments hitting $1,413 for a $300,000 loan over 30 years.

At the time of writing, the lowest comparable variable rate in the Mozo database is 3.44%. On the same loan terms, your monthly repayments would then drop to $1,337, a saving of $912 a year.

If you’re thinking that 2019 is the year you cut ties with the big banks and put some money back in your pocket, we’ve got 5 great low rate home loans to start with down below.

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Beyond Bank Low Rate Special Variable Home Loan
  • Variable 3.79% rate (3.79% comparison rate*)

  • Offset account available

  • Free extra repayments and redraw available

If you’re ready to try something new, then it’s time to look beyond banks, literally. The Beyond Bank Low Rate Special Variable Home Loan is a great option for refinancers with its 3.79% variable rate (3.79% comparison rate*) and no upfront or ongoing fees. There’s also an offset account linked to your loan, which can help reduce interest and the option to make free extra repayments. And if you ever need access to that extra cash, you can use the online redraw facility.

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ME Basic Home Loan
  • Variable 3.89% rate (3.91% comparison rate*)

  • Option to meet with a mobile banker

  • Redraw facility and extra repayments available

Keeping things simple is one of life’s greatest pleasures, which is why you might want to take a look at the ME Basic Home Loan. This home loan comes with a 3.89% variable rate (3.91% comparison rate*) and the option to meet with a mobile banker at any time or place that suits you, helping you answer any questions you might have about your mortgage. There’s also no ongoing fees, although you should remember the $400 upfront fee. And to help you get ahead with your loan, there’s also a flexible repayment schedule, allowing you to make your repayments at a time that suits you best.

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Hunter United Interest Only Owner Occupier Home Loan
  • Variable 4.19% rate (4.19% comparison rate*)

  • No ongoing or upfront fees

  • Fast approval available

The Hunter United Interest Only Owner Occupier Home Loan might be the pick for you if you need to seriously cut down your monthly repayments for a while. Because you're only paying off the interest at the 4.19% variable rate (4.19% comparison rate*) your repayment amount could plummet. You can also get approval in just 24 hours, make extra repayments and use a redraw facility. Just remember this offer is only available for two years and you’ll then have to switch to a principal and interest loan to reduce your outstanding loan amount.

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QBANK Discounted Classic Home Loan
  • Variable 3.84% rate (4.17% comparison rate*)

  • Insurance discount available

  • Free redraw and extra repayments

If you’re looking for a home loan that comes with a little extra, then look no further than the QBank Discounted Classic Home Loan. There’s a 3.84% variable rate (4.17% comparison rate*) and no ongoing fees, plus the chance to get 20% off a new home insurance policy if you sign up within the promotional period. Throw in a redraw facility and extra repayments option and you could be onto a great pick!

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Well Home Loans Well Balanced
  • Low 3.49% variable rate (3.53% comparison rate*)

  • No valuation fee

  • Offset account available

They say the key to a good life is balance, so why not try the Well Balanced Home Loan? This home loan features a low 3.49% variable rate (3.53%*) and no valuation or ongoing fees. Extra repayments are also welcome with this loan and the flexible repayment schedule can help you work your repayments into your budget. And while there is an offset account linked to the loan, keep in mind there is a $10 monthly fee.

*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.

If you’re not done comparing your options, you can head on over to our home loan comparison tool to check out other offers.

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