Cheapest Home Loans

GOLD WINNERS BANK BANK OF SYDNEY NON-BANK REDUCE HOME LOANS If you’re buying a property, make the most of the ultra-low rates while they last

The Reserve Bank may have left the official cash rate at a record low of 1.5% in November but there’s still a massive 2.28% difference between the cheapest and dearest variable rates on Canstar’s database.

The cheapest, courtesy of our non-bank winner Reduce Home

Loans, has an advertised rate of just 3.39%. The dearest, which you won’t find in these awards, is 5.7%.

Queensland-based Reduce has picked up the top award for the third year in a row. Its Rate Buster standard variable loan allows unlimited extra payments and redraws (but repayment frequencies are only monthly or fortnightly).

Borrowers who maintain a good repayment history over five years may even be eligible for a discount.

If you need to borrow more than 80% of the purchase price, then our second placegetter (also from Reduce) may suit. This loan allows you to go up to 90% (lenders mortgage insurance is payable) but you will have to add 0.25% to the advertised rate. Among the banks, Bank of

Sydney moved up a spot to take the No. 1 position from UBank. Its Expect More home loan offers both offset and redraw. You’ll have to open a transaction account with the lender as repayments have to be directly debited from a Bank of Sydney transaction account.

Eligibility, as with UBank, is restricted to PAYG applicants and in Bank of Sydney’s case you need a minimum of one year in the same line of employment.

You’ll need to move fast on this deal, which includes waiving the $395 annual package fee, as the website says applications must be submitted by December 31, 2017 and for metro postcodes only. Restrictions apply for Queensland properties.