Cheapest Home Loans

GOLD WINNERS BANK MOVE BANK NON-BANK REDUCE HOME LOANS Super low rates and no fees ... the smaller lenders show how it’s done

It’s amazing to think that around 75% of Australians have their home loan with one of the big four banks. Yet none of the major banks is directly represented among our cheapest home loan winners.

This speaks volumes about the benefits of casting your net wide in the hunt for a good value mortgage. In fact, with plenty of home loans charging interest rates below 4%, it’s fair to say that if your mortgage rate doesn’t start with a “3” you’re paying too much. Even better, none of our winners charges upfront fees. Sure, they may not have all the bells and whistles of more expensive loans but you’re certainly getting a good deal.

MOVE Bank nails a super low rate with its Straightforward home loan. As the name suggests, it’s an uncomplicated loan that lets borrowers get ahead with fee-free extra repayments and, if you need cash back, online redraw is free. Offset isn’t available but the minimum deposit is just 10% and terms of up to 30 years are available.

UBank is the online arm of National Australia Bank, and it’s worth noting the 3.59% deal is only available for loans between $200,000 and $700,000. As a home loan lender, UBank offers a handy perk for loyal customers. Once you’ve held your home loan for three consecutive years, you may be eligible for a 0.10%pa loyalty discount off the standard variable rate.

Among the non-banks, Reduce Home Loans won this award in 2018. Its Rate Lovers home loan is open to owner-oc- cupiers with a 20% deposit, with terms extending up to 30 years.

Easy Street is the online arm of Community

First Credit Union. Its standard variable rate home loan allows free extra repayments plus free redraw. The loan comes with the option of a 100% offset account and you will only need a 5% deposit.