Beat Home Loans Rate Beater

If you’re wondering where Beat Home Loans gets their name, it is from their signature loan product, the Rate Beater Home Loan. Beat Home Loans promises:

• To beat the current variable interest rate you are paying on your loan.
• To beat the variable interest rate offered by any other lender.
• To beat rates for new customers only.
• To beat rates on comparable products only – not on fixed rates or introductory discounted offers.

Beat Home Loans Interest Rate Guarantee

While there are a few conditions to the Beat Home Loans guarantee of the lowest interest rate, there aren’t many, so you may be wondering about the catch. While the motto ‘if it sounds too good to be true it probably is’ is a good way to avoid being taken advantage of, some offers sound too good to be true when you look at them only on the surface.

Beat Home Loans is a non-bank lender and as such they don’t get their funding from yours and other customers’ savings deposits, so they don’t have to pay you high interest when they lend out your money, and charge high interest in return. Non-bank lenders source their funds through wholesale funding, or even from other Australian financial institutions, so they have full use of the funds they lend you, without fewer overhead costs to pass on. As a result, Beat Home Loans can afford to be more competitive.

However, the interest rate is just one aspect of a home loan you should consider when deciding to borrow because to truly benefit you, and make it easy for you to repay your mortgage sooner, a home loan must have the right features, the best service and the lowest fees. A comparison rate can help you compare some of the fees; our review can help you start considering the features and benefits of Beat.

Features and Benefits of the Rate Beater Home Loan

The interest rate on a home loan will often dictate how much you pay in addition to the principal amount borrowed, and how much your repayments will be, however, there are a range of loan features which can reduce the amount of interest you pay regardless of the rate or the RBA movements, and features which can help you manage your cash flow and family budget more easily, such as:

• Additional repayments. You can make unlimited free additional repayments on your Rate Beater Home Loan to directly reduce the principal loan amount, and reduce the interest you will be charged.
• Linked Visa debit card. When you have a home loan you have little room in your budget for other debt so you can use a debit card to function as a credit card online, over the phone or securely in person, without building up a balance. A Visa debit card accesses your transaction account funds so you can only spend your own money. Your debit card has a $10 monthly fee, and 5 free transactions a month.
• Redraw using Visa debit. You can also use your Visa debit card to access additional repayments you have made if you need the funds in an emergency for example. You pay $50 per redraw, and are limited to a $1,000 minimum redraw using your debit card, or online.
• Loan portability. To help you avoid costly exit fees if you move house and need to refinance your loan, you have the portability option with Beat to keep your home loan when you move.
• No fees for – application, settlement, valuation, legal fees, or ongoing fees.

Read the Beat Home Loans Rate Beater terms and conditions.

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