In case you missed the news, home loan rates have gone off a cliff in the past two years in the wake of six Reserve Bank interest rate cuts, including one last November. And now that the dust has settled, Aussie homeowners have a real opportunity in 2021 to take advantage of some of the lowest rates on record.
Borrowers looking for the sharpest rates will need to look beyond the big banks though. Rival lenders have taken the spotlight: not only dishing up super low variable and fixed rates, but also new features and extra incentives.
It’s little wonder that rival lenders are seeing a spike in customers switching their home loans from the major banks, with some genuinely big savings now available for those who are prepared to shop around.
So, if you're sick of paying more than you need to on your home loan, you’ll want to get acquainted with these killer lenders taking on the big banks in 2021.
MORTGAGE CRUSHING HOME LOANS
loans.com.au Smart Booster Home Loan
1.99% intro variable rate for 1 year
Rolls over to low ongoing 2.48% (2.47% comparison rate*)
Optional offset account plus free redraws and extra repayments
This headline stealing new home loan from popular online lender loans.com.au is designed to help you boost your savings, build your equity and own your own home, sooner. Flexible features include unlimited free extra repayments and redraw, multiple loan split options and an optional offset account for 0.10%. What's more, there are no ongoing monthly or annual fees. Available to borrowers with a 20% deposit for loans of up to $1 million.
1.89% fixed rate for 2 years (3.05% comparison rate*)
Free extra repayments up to $5,000 each year
$3,000 cashback for refinancers (T&Cs apply)
BOQ is a favourite with borrowers looking to find value outside of the big four banks, and for good reason. The BOQ Discounted Fixed Home Loan lets you lock in a super low rate for two years while still having the flexibility to pay down your mortgage faster with free extra repayments of up to $5,000 a year. Plus, you can enjoy a generous $3,000 cashback when you refinance to BOQ. Minimum loan size $250,000, 80% LVR or less.
UBank is the online bank created by NAB to disrupt borrowing and savings, and boy have they succeeded! Offering super competitive interest rates, zero upfront or ongoing fees and ultra-efficient online processes, it’s little wonder UBank has become such a success story. The UHomeLoan 2.34% variable and comparison rate* is available for loans of $200,000 or more with a minimum deposit or 20%.
Online lender, Athena, is on a mission to save borrowers money on their mortgage, with a customer first commitment and some of the lowest rates around. The Athena Variable Home Loan offers the same great rates to both new and existing borrowers and is available to refinancers and new borrowers purchasing in capital or major regional cities. 40% deposit required.
Like the idea of a lender who has a familiar name and won’t make you compromise on rates? Well Suncorp’s Fixed Home Loan Special Offer could fit the bill, as it comes with a rock bottom 2-year fixed rate of 1.89% (2.85% comparison rate*) - one of the lowest in our database. While there is a $375 annual fee to weigh up, Suncorp will actually waive it for borrowers in the first year, plus the loan also allows extra repayments during the fixed term (free up to $500 per month).
*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.