The best home loans in Australia for 2018

Tom Watson   |   23 Mar 2018

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Given the mountain of different providers and rates available when it comes to choosing a home loan, Aussie borrowers can be forgiven for finding it hard to pick the best option. But finding the right home loan could be the biggest financial decision you make - one that could mean the difference between tens of thousands of dollars in interest saved over the life of a loan.

Thankfully, with over 50 years of financial services experience between them, the Mozo experts have a serious knack for identifying great value loans. And they used it to compare over 500 loans from 88 providers in the 2018 Mozo Experts Choice Awards, to identify the best value options for Aussie borrowers.

So whether you’re refinancing, investing or looking to buy a new home, read on for some of the best, low rate home loans on the market to help you start saving today.

Best value home loans

Promoted

loans.com.au Essentials Variable 80
  • 3.64% variable rate (3.66% comparison rate*)

  • $0 annual fee (upfront costs apply)

  • Fee-free extra repayment and redraw facilities

The Verdict

When it comes to a low variable rate, it doesn’t get much better than the loans.com.au Essentials Variable 80 offer for owner occupiers. And if the low rate isn’t enough, the lack of annual fee and potential to make extra repayments for free could keep your ongoing costs down even further. On top of winning a 2018 Mozo Experts Choice award for best Low Cost Home Loan, it was also named a winner in the Investor Home Loan category.

Promoted

HSBC Discounted Home Value Loan
  • 3.59% variable rate (3.61% comparison rate*)

  • No upfront or ongoing fees

  • Borrow with just a 10% deposit

The Verdict

With a seriously low rate and next to no fees, the HSBC Discounted Home Value Loan is a great low rate option for owner occupier borrowers looking to make principal and interest repayments. Not only could the lack of upfront and ongoing fees, plus the free extra repayments option, cut down costs and help you pay back your loan faster, the minimum deposit of just 10% makes it easier for buyers to enter the market in the first place. In fact, the loan took out two 2018 Mozo Experts Choice awards in the Low Cost Home Loan and First Home Buyer categories.

Promoted

NAB Base Variable Rate Home Loan
  • 3.87% variable rate for owner-occupiers (3.91% comparison rate*)

  • 4.65% variable rate for investors (4.70% comparison rate)

  • $1,250 cashback with a NAB home loan banking bundle

The Verdict

Like the idea of grabbing a competitive variable rate deal but still want to stay with a major bank? The NAB Base Variable Rate home loan could be just the ticket, with competitive deals for both investors and owner occupiers. While it was awarded a 2018 Mozo Experts Choice Award in the best Investor Loan category, the owner occupier option is also worth a look, especially as both offers come with the capacity to make extra repayments, redraws and even for you to take a repayment holiday. Plus, when you take out a loan of at least $250,000 and bundle it with a NAB Transaction Account, you could score $1,250 cashback!

Promoted

State Custodians Low Rate Home Loan with Offset
  • 3.68% variable rate (3.69% comparison rate*)

  • $0 application or service fees

  • Free 100% offset account

The Verdict

Picking up Experts Choice Awards in the First Home Buyer and Offset Home Loan categories, the State Custodian Low Rate Home Loan with Offset packs a punch in terms of value. It comes with a competitive 3.64% interest rate on loans up to $2 million with at least a 20% deposit. Plus with the included full offset account, free extra repayments and redraw facility, you’ll be able to save a tonne on interest over the life on the loan.

Promoted

UBank UHomeLoan - Discount Offer for Investor
  • 3.99% variable rate (3.99% comparison rate*)

  • No application or annual fees

  • Free extra repayments and redraw facility

The Verdict

Property investors, this could be the loan for you. Winner of a 2018 Mozo Experts Choice award in the best Investor Home Loan category, the Discount Offer for Investor deal from UBank packs an alluring 3.99% variable rate, plus it’s fee-free! If you also like the idea of making use of handy features such as the ability to make extra repayments and redraws, this could be the home loan option for you.

Promoted

Newcastle Permanent Discounted Variable Home Loan
  • 3.72% variable rate (4.12% comparison rate*)

  • $0 application fees

  • 100% offset, extra repayments and redraw facilities

The Verdict

The Discounted Variable Home Loan from Mozo’s 2018 Home Lender of the Year, Newcastle Permanent, provides borrowers with the full deal. Together with a low variable rate and no upfront fees, the loan also offers a suite of useful features including a 100% offset account, repayments holiday, the option for extra repayments and a redraw facility. A 2018 Mozo Experts Choice winner in both the Package Home Loan and Split Home Loan categories, borrowers should just be aware that they’ll need to pay a $395 annual fee in order to access all the benefits of the loan.

Promoted

Homestar Variable Rate Loan
  • 3.54% interest rate (3.59% comparison rate*)

  • 100% offset account

  • $0 application fee

The Verdict

Homestar’s Variable Rate Loan was a winner in the Mozo Experts Choice Low Cost Home Loan and Offset Home Loan categories, to name just two of its wins. This is a competitive mortgage offer with a suite of handy money saving features including a full offset account, free extra repayments and a redraw facility. There’s also the option to choose weekly, fortnightly or monthly repayments to suit your budget, and opt to split your loan between fixed and variable rates if you want to.

*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 $150,000 over 25 years.

This is just a selection of our Mozo Experts Choice Home Loan winners. Head over to our dedicated Awards page if you want to see the full list of winners.

Want to compare more home loans? Check out the latest mortgage rates from 80 lenders at Mozo's home loan comparison hub.

The Mozo Experts Choice Awards recognise products that deliver exceptional value or benefits to consumers. Our judges base their decision on hard-nosed calculations of value to the consumer, using Mozo’s extensive product database and research capacity.  Product providers don’t pay to be in the running and we don’t play favourites. Award winners may choose to purchase a licence to use their award in their own marketing and may choose to list products on the Mozo website in a way that may generate revenue for Mozo.

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.

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.