It’s one simple word, but for the hundreds of thousands of homeowners with mortgages across Australia it could make a huge difference to their wallets: refinancing.
Since June, the RBA has shaved 0.75% off the official cash rate, prompting a wave of home loan lenders to take an axe to their own home loan rates - some have even passed on a full 0.75% cut!
Why do you need to refinance if lenders have already taken action then? Well if your own lender hasn’t passed on the full cut, or if it’s just been too long since you last re-evaluated your offer, now could be the time to strike. Our analysis shows that the typical owner occupier with a $400K home loan could save close to $4,000 a year by switching from a big 4 bank to the best rate on the market.
To get you started, we’ve pulled together some of the hottest refinancing home loan deals on the market right now:
TOP REFINANCE HOME LOANS
loans.com.au Smart Home Loan 80
2.88% variable rate (2.90% comparison rate*) - Apply now to get this rate as of 17 October
No ongoing fees
Free extra repayments and redraws
Online lender loans.com.au knows a thing or two about delivering low rates which is why they’re offering borrowers a 3.03% variable rate (3.05% comparison rate*) with the Smart Home Loan. Whether you’re a refinancer or new borrower, you won’t pay a cent in monthly fees and you’ll have the option of making extra repayments towards your loan (for free). Just watch out for the $300 settlement fee and you’ll be set.
UBank UHomeLoan - Discount Offer
2.84% variable rate for loans over $200,000 (2.84% comparison rate*) - Apply now to get this rate on October 29
You know you’re entering low rate territory when a loan starts with a “2” and that’s exactly where UBank’s 2.84% variable rate (2.84% comparison rate*) UHomeLoan - Discount offer sits. Aside from the low rate, the UHomeLoan has zero fees and it can even help borrowers pay off their loans faster thanks to the (free) extra repayments feature. Just bear in mind that this is a seriously fresh rate from UBank, so while you can apply now, it won’t kick in until October 29.
Athena has launched into the mortgage market with a bang and it’s brought some really competitive rates with it. In fact, the Athena Variable Home Loan comes equipped with one of the lowest rates around: a 2.84% variable rate (2.80% comparison rate*) made specifically for refinancers. Plus with zero fees to worry about and a 0.01% bonus discount each year (for the first 5 years) for loyal customers, what’s there not to like about Athena?
HSBC Discounted Home Value Loan
New 3.02% variable rate (3.04% p.a. comparison rate*) - Apply now to get this rate from 21 October
Winner of the Mozo Experts Choice Awards for Low Cost Home Loan and First Home Buyer Loan, this great value home loan from HSBC is a real winner. Not only will you score a great value interest rate and pay no application or service fees, but you can also take advantage of benefits like free extra repayments, redraw and a split loan facility. You'll even get your own relationship manager to help you through the application process.
Bank of Queensland Discount Fixed Rate
2.99% 3 year fixed rate (3.79% comparison rate*)
Free extra repayments up to $5,000 p.a.
Make repayments weekly, fortnightly or monthly
If you’re looking to lock in a big-bank-beating rate, then look no further. Bank of Queensland is offering up a killer rate on a fixed 3 year term, and what’s more, you won’t miss out on the added benefit of making free extra repayments to cut down your interest. This one’s available for loans from $300,000 with an LVR of 80% and make sure you budget for the $10 monthly fee and $450 application fee.
*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.