This simple mortgage trick saved one family $4,500 a year
Mozo
30 Nov 2018
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 Rate Home Loans under 4%
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loans.com.au Essentials Variable 80
3.64% variable rate (3.66% comparison rate*)
No ongoing fees, free extra repayments and free redraw
Mozo Experts Choice Best Low Cost Home Loan winner 2018
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.
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Bank Australia Basic Home Loan Special
3.65% variable rate (3.66% comparison rate*)
$0 annual or application fee
Free extra repayments and redraw facility
With a special low rate and no big fees to budget for, the Bank Australia Basic Home Loan Special is a must for prospective home buyers to check out. You can borrow amounts from $10,000 with a 20% deposit and choose from monthly, fortnightly or even weekly repayments. Plus, you’ll be able to pay off your balance quicker with free extra repayments.
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Well Home Loans Well Balanced
3.49% variable rate (3.53% comparison rate*)
No ongoing fees (upfront fee applies)
Free extra repayments and redraw facility
Well Home Loans is an online lender with a difference. Not only do they offer super low interest rates, they also aim to make the experience of applying for a home loan as quick and easy as possible. Their online interview helps you whip through your application, and you'll also get a dedicated loan officer to guide you through the approval process. The Well Balanced Home Loan has a great low rate, no valuation or ongoing fees and you can even set up an offset account for just $10 a month.
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Virgin Money Reward Me Variable Rate Home Loan
3.68% variable rate (3.82% comparison rate*)
20,000 Velocity Points for every $100,000 borrowed
Full offset account available
Sign up to a Virgin Money Reward Me Variable Rate Home Loan, and you can score a stack of rewards points! Not only can you bag 20,000 Velocity points for every $100,000 you borrow, but you’ll also score an extra 1,00- Velocity points per month of your loan, and an added 30,000 Velocity Points every 3 years, for as long as your balance is over $50,000. Add to that a super competitive home loan offer with a low rate and suite of handy features, and this one’s definitely worth a look!
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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. The ultra low rate is available for loans of $200,000 or more, and you'll need a deposit of at least 20% to apply.
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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