Let’s get real. You don’t want a mortgage.

Ceyda Erem

12 Jun 2019

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At Mozo, we like to keep it real. Saving money is tough. Keeping to a budget isn’t easy. And let’s face it, no one wants a home loan, all you want are those four brick walls and a place to park your car.

And it looks like many Aussie homeowners feel the same way, as a recent survey by Athena found that 79% of Aussies said they would switch lenders if it meant they could pay off their home or investment sooner, while 57% of Aussies felt that their lender didn't want them to pay off their loan sooner.

“It’s in the banks interest to keep customers in debt as they make more money. We took a different view at Athena and listened to what customers actually want, which is to be debt free. We want to help them achieve that,” said Athena CEO, Nathan Walsh.

“Our goal is to get customers a great home loan, and then help them get rid of it. After all, time is money.”

So we decided to put it to the test.

Say you’re five years into a 30 year, $400,000 mortgage with monthly repayments of $1,921.21 and the average variable interest rate of 4.04% (correct at the time of writing). If you were to refinance to a loan with a variable rate of 3.34% but kept up with the same monthly repayments, you’d pay off the loan 4 years earlier!

And the good news is, there are a few other ways to pay off your loan quicker, like having the option to make extra repayments and minimal fees.  

So if you’re one of the Aussies ready to make the switch to a lender that’s all about helping you pay off your loan sooner, check out some current offers below.

Promoted

Athena Variable Home Loan
  • Low 3.34% variable rate (3.30% comparison rate*)

  • No application or ongoing fees

  • Free extra repayments and redraw facility

If you’re ready to refinance your loan and fast track your way to being debt free, look no further than the Athena Variable Home Loan. Aside from the low 3.34% variable rate (3.30% comparison rate*), you’ll be able to put every dollar toward paying of your loan, as the Athena Variable Home Loan is entirely fee free! And if you’re willing to pay a little extra each month, you’ll be able to do so, thanks to the free extra repayments feature.

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UBank UHomeLoan - Discount Offer
  • Double 2019 Mozo Experts Choice Award winner

  • 3.59% variable interest rate (3.59% comparison rate*)

  • Split loan option

Next up is the UBank UHomeLoan Discount offers, where for a limited time, borrowers seeking a loan over $200k will receive the 3.59% variable rate (3.59% comparison rate*). The UBank UHomeLoan comes with no upfront or ongoing fees, plus the option to reduce your interest and pay off your loan faster through the extra repayments feature. And if you ever need those additional repayments back, all you need to do access the redraw facility. Not bad for a 2019 Mozo Experts Choice Award winner.

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Newcastle Permanent Discounted Variable Home Loan
  • 3.89% variable rate (4.29% comparison rate*)

  • 100% offset account

  • Borrow with a 10% deposit

If you’re someone who wants more out of their home loan than just a low rate, meet the Newcastle Permanent Discounted Variable Home Loan Premium Plus Package. With a 3.89% variable rate (4.29% comparison rate*), you’ll be able to borrow up to 90% of the property’s value. This packaged loan is full of flexibility, from the 100% offset account to the free extra repayments and redraw option. And if you’re thinking of taking out an insurance policy for your brand new home with Newcastle Permanent, you’ll get a 5% discount on your car insurance and a 10% discount on your home and contents or landlord insurance.

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ME Basic Home Loan
  • 3.58% three year fixed rate (4.26% comparison rate*)

  • Free extra repayments (up to $30,000 during fixed period)

  • No application fee

But if you prefer the security that comes with fixing your rate, check out the ME Flexible Home Loan Member Package. There’s a 3.58% three year fixed rate (4.26% comparison rate*) and a $0 application fee, helping you get your mortgage off to a great start. With this loan, you’ll be able to make free extra repayments of up to $30,000 during the fixed period and have the option to split your loan. Just keep in mind there is a hefty $395 yearly service fee to consider.

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loans.com.au Smart Home Loan
  • Competitive 3.28% variable rate (3.30% comparison rate*)

  • No application or ongoing fees

  • Free extra repayments or redraw facility

The loans.com.au Smart Home Loan combines innovation with the budget friendly features of a basic home loan. Borrowers will have access to a competitive 3.28% variable rate (3.30 comparison rate*), one of the lowest variable rates on the market, as well as pay no upfront or ongoing fees. You’ll be able to make free extra repayments to help pay off your loan quicker and access the redraw facility if you ever need those additional repayments for an unexpected expense. Just keep in mind, you will need a 20% deposit to be eligible for this loan.

*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 home loans that are all about helping your pay off your mortgage faster, check out our home loan comparison tool!  

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