This simple mortgage trick saved one family $4,500 a year

Mozo   |   19 Sep 2018

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If you’re anything like the typical mortgage holder, it’s probably been a while since you compared home loans to see if your rate is still competitive. But as one Aussie family found, this mistake could be costing you thousands of dollars a year in higher interest charges, particularly now that banks are hiking rates.

The Lamont family from Sydney’s north thought their home loan was a good deal, having a switched a few years ago from a big bank to a cheaper lender. In reality, it had become seriously uncompetitive after a series of rate hikes. After comparing home loans on Mozo, the Lamonts refinanced with an online lender, hassle-free. This simple process saved them a massive $4,500 a year.   

So if you haven’t reviewed your home loan lately, why not do it today. Who knows how much you could save by switching? Here are the Mozo Editors Picks of some of the top home loans on the market to get you started….


Low Cost Home Loans September 2018

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

  • No ongoing fees, free extra repayments and free redraw

  • Mozo Experts Choice Best Low Cost Home Loan winner 2018

  • Fast and hassle free online application service

Popular online lender loans.com.au offers a super low rate with its Essentials Variable home loan plus handy features like free extra repayments, free redraw and the option to split your loan between fixed and variable rates. Its no wonder loans.com.au is a multiple Mozo Experts Choice Awards winner. If you’re borrowing $2 million or less and have at least a 20% deposit saved up, the Essentials Variable 80 might be the mortgage for you.

Promoted

HSBC Discounted Home Value Loan
  • 3.64% variable rate (3.66% comparison rate*)

  • $0 upfront or ongoing fees

  • Relationship manager to help you through application process

HSBC has come out swinging with this great low rate, low fee home loan offer. Not only does this home loan come with handy features like free extra repayments and a free online redraw facility, but you’ll also get your very own relationship manager to help you with your application. You can borrow up to $7.5 million and loans are available with as little as a 10% deposit.

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UBank UHomeLoan - Discount Offer
  • 3.59% variable interest rate (3.59% comparison rate*)

  • No annual or application fees

  • Free extra repayments and redraw facility

UBank is another online lender proving popular with Aussie borrowers for super low home loan rates, not to mention the fact that it's actually backed by NAB. The UHomeLoan Discount Offer comes with no annual or application fees, plus features like the ability to make unlimited free extra repayments and use a redraw facility. You'll need a deposit of at least 20% to apply.

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

  • Free offset account plus no application or ongoing fees

  • Mozo Experts Choice Best Offset Home Loan winner 2018

  • Find out how much you can borrow in 2 minutes online

State Custodians is one of Australia's most awarded non-bank lenders, and its Low Rate Loan with Offset is packed with money saving features. Not only does this home loan comes with a very competitive interest rate and very few fees, but you’ll also have access to a host of features including a full offset account, free extra repayments, a redraw facility and the option to split your rate between fixed and variable.

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NAB Base Variable Rate Home Loan Special Offer
  • 3.69% variable rate special offer (3.73% comparison rate*)

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

  • No annual fee (application fee applies)

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. Plus, bundle your home loan of at least $250,000 with a NAB Transaction Account and you can score $1,250 cashback! This offer is only available to new borrowers and for a limited time, so get in quick!

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Aussie Select Basic Variable
  • Competitive 3.69% variable rate (3.70% comparison rate*)

  • Free redraw and extra repayments plus no ongoing fees

  • Expert refinance advice from an Aussie mortgage broker

With an Aussie home loan, you'll get a competitive interest rate, low fees, plenty of flexible features plus expert support from an Aussie mortgage broker to help you through the refinance process. Applying for an Aussie home loan is quick and easy, with Aussie committing to assessing your application usually within 48 hours. To get started, simply click the Enquire Now button on the Mozo site and complete the fast enquiry form to have an Aussie mortgage broker contact you.

*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.

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


Rates correct at time of writing. How much you could save by refinancing your home loan depends on your personal circumstances.

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