Aussies looking to save money on their home loan are racing to take advantage of the latest frenzy of home loan rate cuts, as challenger lenders slash rates to crazy new lows.
The super sharp rates on offer from online and challenger lenders have created a perfect storm for the big banks, as borrowers ditch and switch in search of bigger savings from more competitive lenders who are now offering variable interest rates that are more than 1.00% below the average big 4 bank rate.
With variable and fixed home loan rates now starting from under 2.50%, savvy borrowers could save tens of thousands on their home loan by refinancing. So if you'd like to crush your mortgage in 2020 and beyond, take a look at some of the top deals on the market right now and get switching!
NEW ROCK BOTTOM RATES - SEPTEMBER 2020
loans.com.au Smart Home Loan 80
New 2.48% variable rate (2.50% p.a. comparison rate*)
This super low variable rate from popular online lender loans.com.au is a bona fide mortgage crusher, and they've done away with pesky fees as well. This no-fuss mortgage has all the features you want and none you don’t - you can make unlimited extra repayments and access a free redraw facility, without paying a premium for bells and whistles like an offset account. If you’re borrowing $1 million or less and have at least a 20% deposit saved up, the Smart Home Loan really is a smart choice.
Macquarie Basic Home Loan
2.19% fixed rate for 2 years (2.65% comparison rate*)
Macquarie is making waves as the lender of choice for borrowers with decent equity in their property and this competitive new fixed home loan shows why. Not only can you lock in at close to 2 percent for 2 years, you won't sacrifice flexibility. You can access free redraws via Macquarie Online, create up to six loan accounts with different rate and repayment types, and mange your accounts using the state-of-the-art Macquarie app. It's available to borrowers with a minimum 70% LVR.
ING Mortgage Simplifier
2.59% variable rate (2.62% comparison rate*)
No service or application fees
Free extra repayments and redraw facility
The Mortgage Simplifier Home Loan is value packed, as you'd expect from the current holder of the Mozo Experts Choice Award for Australia's Best Bank. With a competitive variable rate, no monthly or annual account fees, unlimited additional repayments and free redraws this loan ticks all the boxes. What's more, by rounding up purchases on your linked Orange Everyday account, every card purchase will help to directly reduce your outstanding home loan balance.
Featuring an ultra low variable rate, no application fees and no ongoing service fees, the UHomeLoan is a great budget-friendly option for refinancers that has the security of being backed by NAB. Flexible features include free extra repayments and unlimited free redraw, and you can choose monthly, fortnightly or weekly repayments to suit your budget. No wonder it won an award for a Best Low Cost Home Loan Award. Available for loans of $200,000 plus with a minimum deposit or 20% or more.
HSBC Fixed Rate Home Loan
2.09% fixed rate for 2 years (2.98% comparison rate*)
HSBC has just dropped this market leading 2 year fixed home loan and is sure to win over plenty of borrowers eager to save on monthly repayments and protect against future rate rises. You can make free extra repayments up to $10,000 a year during the fixed rate period and choose to split your loan between fixed and variable. It's available to borrowers with at least 20% deposit and as an added bonus there are no application or ongoing fees to pay.
Athena Celebrate Variable Home Loan
2.39% variable rate (2.39% comparison rate*) - apply now to get this rate from 30 Sept
No application, valuation or ongoing fees
Mozo Experts Choice Best New Home Loan Winner 2020
The new Celebrate Variable Home Loan from Athena features a competitively low rate and a customer first approach, helping Aussies around the country save money and pay off their mortgages sooner. Plus, to reward borrowers for paying down their home loan, Athena will now automatically lower your rate as you pay down your loan. Available to borrowers with a 40% deposit or equity in their property, this Athena Home Loan is shaking up the mortgage market.
*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.