New financial year sparks home loan discounting frenzy
The new financial year is here, and it's a great time to resolve to save money on your home loan as it's brought with it a frenzy of discounted home loan specials offering rate discounts, fee waivers, cash back and other rewards.
Lenders are racing to entice borrowers with rock bottom deals, and savvy borrowers who act fast to snap up one of these limited time only specials could potentially save a tonne on their home loan.
With banks expected to hike home loan rates by the end of the year, getting a cheaper home loan now is a savvy strategy to protect against rate rise pain.
To help you cash in on the savings, the Mozo Editors have rounded up 5 of the best home loan specials available right now.
5 Killer Home Loan Specials For the New Financial Year
loans.com.au Smart Loan Fixed 80
3.89% fixed rate for 2 years (3.78% comparison rate*)
$0 application or service fee
Free extra repayments up to $10,000 p.a.
This new offer from loans.com.au comes with a super competitive fixed rate for the first two years, plus no application fee or yearly service fee to drain your budget. And here’s the kicker - if you’re after both an owner-occupier and an investment loan, bundle them together in this offer and you’ll get the same great low rate for both!
State Custodians Low Rate Home Loan with Offset
Super low 3.64% variable rate (3.67% comparison rate*)
Free 100% offset account and online redraw
Borrow with just a 5% deposit
Not only does this home loan from popular online lender State Custodians currently offer a super low variable rate, it also comes jam packed with features including a free 100% offset account, online redraw, unlimited extra repayments and a split loan facility. There are no ongoing fees and you can choose to make weekly, fortnightly or monthly repayments.
Bank Australia Basic Home Loan Special
3.65% variable rate (special 3.66% comparison rate*)
No establishment fee until 31 September, plus no ongoing fees
Free extra repayments and redraw
The Bank Australia Basic Home Loan Special is a top value pick for borrowers after a competitive interest rate and some no-frills features. The establishment fee is being waived until 31 September, and there aren’t any ongoing fees to blow your budget. The features on offer include the chance to make free extra repayments, use a redraw facility and take a repayment holiday if you need to. You can also choose to make repayments monthly, fortnightly or weekly to fit your budget.
UBank UHomeLoan - Discount Offer
$1,000 cash on loans over $200k (Apply by 6 August)
3.59% variable rate (3.59% comparison rate*)
No upfront or ongoing fees
Super low rate? Check. No application or annual fees? Check. Handy features like free extra repayments and a redraw facility? Double check. The UBank UHomeloan Discount offer comes with all this great value included. You can also choose a split rate option and your repayment schedule. But there’s more - refinance or take out a new loan of at least $200,000 and you can score a $1,000 cash bonus.
NAB Base Variable Rate Home Loan Special Offer
If you prefer to stick with a big bank, then our pick is the NAB Base Variable Rate Home Loan Special Offer. With a competitive low rate and no ongoing fees to strain your budget, this is a great option for borrowers after a loan of up to $2 million. In terms of features, you’ll have the ability to make free extra repayments and use a redraw facility. This discounted offer is only available to new borrowers and for a limited time, so get in quick!
*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.
Calculate your home loan repayments
We can show you the monthly repayment amount for a range of loans
Mozo may receive advertising fees from the financial institutions, issuers of financial or credit products and third party advice providers that are shown on this page. These fees are based on a cost per click, cost per acquisition, or a fixed fee.