With the property market in a flurry, the recent dropping of the cash rate to a record low is likely to ignite more activity among buyers. Many borrowers are looking to assess their property options in the new rate environment while lenders are still in the process of passing down rate cuts – or keeping them to themselves.
It can be hard to know where the best loan deals are in the market, if your lender will be passing on the full cut or if you’re getting the cheapest deal. That’s why it’s so important to use comparison websites when interest rates are falling, to compare your home loan to other lenders and talk to your lender about receiving a better deal. If they won’t come to the party, it could be time to switch.
loans.com.au Dream Home Loan Essentials
Interest rate: 3.98%
A regular in the top spot for variable loans, loans.com.au is a solely-online provider which its Dream Home Loan is the lowest on finder.com.au and also allows for split portions, redraw facilities, and is portable should you decide to move. That being said, there’s a $220 valuation fee, alongside a $300 settlement fee, waiting for those who choose this product. It’s also important to note that you’ll need a 20 percent deposit in order to take out this loan.
Mortgage House Pure and Simple Home Loan
Interest rate: 3.99%
Another loan that requires a 20 percent deposit, this loan also sits attractively under 4 percent. With this loan you’ll be able to make extra repayments and redraw s, while also enjoying no ongoing fees. However, you won’t have access to an offset account or split options, which could be very valuable options for modern property buying.
Interest rate: 4.09%
With no annual, valuation or legal fees, this loan does a good job of minimising unexpected fee stings for its customers. What it asks in return is that you have a 20% deposit, which can rule out this loan for some borrowers on a tight budget. You also won’t have the option to add an offset account, which may be a slight turnoff for some borrowers.
Interest rate: 3.95%
This is the lowest three-year fixed rate on finder.com.au and it’s also lower than the variable loans on offer on the site. While there are low-doc options for this loan, it’s not for those with bad money habits. A $420 annual fee, $300 application fee and $150 settlement fee could test your wallet and your budgeting skills.
Newcastle Permanent Building Society Fixed Rate Home Loan
Interest rate: 3.99%
With a limited-time cash back refinancing offer of $1,000 for those borrowing over $150,000, this loan is made with the savvy borrower in mind. You’re able to borrow up to 95 percent of the property value, can mix up the repayments and also have access to interest-only options, should you so desire. But no offset abilities, redraw facilities or split options means you’ll need to make your dedicated repayments sustainable, as it may not be possible to access your money once you’ve made your monthly transaction.
Bank of Queensland Fixed Rate Home Loan
Interest rate: 3.99%
Also coming in under 4 percent due to a limited time offer for new borrowers with a 20 percent deposit, this loan also boasts a 100 percent offset account, extra repayment options and the added bonus of portability. That being said, you will need to brace yourself for $570 worth of fees, broken down into a $300 application fee, $150 settlement fee and ongoing $120 annual service fee.
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Story by Michelle Hutchison
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