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%
Promoted
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.
Promoted
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.
Promoted
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!
Promoted
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.
Promoted
NAB Base Variable Rate Home Loan
3.87% variable rate (3.91% comparison rate*)
Borrow with a 5% deposit
No ongoing service fees
If you’re looking for real value from a big bank, don’t go past the NAB Base Variable Rate home loan. Not only will you pay no ongoing service fees and have access to free extra repayments and a redraw facility, but you also have the option to take a repayment holiday and split your loan between fixed and variable rates, to tailor it to how you want it.
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.
Calculate your home loan repayments
We can show you the monthly repayment amount for a range of loans
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.
