Is getting new digs on your to do list for 2020? Well if you are keen to become a homeowner or you’re looking to refinance this year, then you’ve probably started sifting through all the home loans on offer already. Of course that in itself is no mean feat, because there’s a lot of home loans to choose from, in fact according to our databases there are over 500 home loans available in Australia.
The good news is, online lenders are making things a lot easier for borrowers, with low interest rates, fast and easy online applications and efficient approval processes. And if you’re wondering where to start, we’ve gathered a list of some of the hottest online home loans in the Mozo database right now. Why not take a look.
5 hot online home loans
loans.com.au Smart Home Loan 80
Low 2.88% interest rate (comparison rate 2.90%*)
No ongoing fees
Free additional repayments allowed, plus free redraw facility
With one of the lowest variable interest rates in the Mozo database, online lender Loans.com.au’s Smart Home Loan is not one to be passed over lightly. Plus if you do opt for this home loan then you’ll also be happy to hear that there is no ongoing fees. The loan also comes with more than a few bells and whistles attached, including the ability to make extra repayments to help pay off your loan sooner, and a redraw facility. So if you’re after a low interest rate with some useful features, it might be worth checking out.
Online lender Well Home Loans’ Well Balanced is just that, well balanced. It comes with a competitive variable interest rate of 2.84% plus a whole host of useful features (2.86% comparison rate*). If you opt for this home loan then you’ll benefit from a free extra repayments facility and a free redraw facility. Plus with this home loan you can have the best of both worlds with the split account feature; this feature allows you to split your loan into two accounts, one with a variable interest rate and the other with a fixed interest rate. This way you can both benefit from a lower variable interest rate and protect yourself from interest rate hikes with a fixed rate.
UBank UHomeLoan - Discount Offer
2.84% interest rate for loans over $200,000 (comparison rate 2.84%*)
Free additional repayments and free redraw facility
If you’re looking to borrow more than $200,000 (which in the current housing market wouldn’t be all that difficult), then you’ll be happy to hear that with UBank’s UHomeLoan you could benefit from a variable interest rate as low as 2.84% (comparison rate 2.84%*). But this home loan doesn’t just offer a competitive interest rate, it also comes with a free extra repayments facility and free redraw facility. Not to mention the fact that you can easily apply for it online and keep track of the application status using UBank’s online application tracker. So if you like doing things digitally and you want to benefit from a low variable interest rate, UBank’s UHomeLoan could be one to add to your shortlist.
Athena Liberate Variable Home Loan
2.84% interest rate (comparison rate 2.80%*)
Free extra repayment facility, plus free redraw facility
Not only does online Aussie lender Athena’s Variable Home Loan come with a low variable interest rate of 2.84% (2.80% comparison rate*), it also has some pretty handy features, including a free extra repayment facility and a free redraw facility. Plus true to its digital form, you can apply for the loan online in just 15 minutes and track the status of your application online. And if you make all your payments on time and you’re a loyal customer, you could be rewarded with a 0.01% discount each year for the first five years.
Tic:Toc Variable Home Loan
Low 2.79% interest rate (comparison rate 2.80%*)
Free extra repayments, plus free redraw facility
Requires as little as a 10% deposit
Online lender Tic:Toc’s Variable Home Loan is yet another offer firmly in the 2% club, with variable interest rates as low as 2.79% (comparison rate 2.80%*). This digital home loan isn’t lacking in features either, with a free extra repayments facility and a free redraw facility. And on top of that you even have the option to add an offset account so you can pay less interest on your overall loan. Although you will have to pay a monthly fee of $10 for the offset account, so just make sure the amount you’ll save in interest will make it worth your while. This loan could be for you if you are keen to benefit from a lower variable interest rate, want to take advantage of all the extra features and enjoy taking care of all your finances online.
*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.