Cheapest Home Loans
When seeking out the cheapest home loans you must remain wary because cheap often means just that – ‘cheap’. It is not to say that the cheapest home loans are not worth seeking out though, as there are some quite good bargains on offer.
The basic variable interest rate no frills home loan can be the cheapest in money terms.
You will no doubt look closely at a basic variable interest rate home loan with no frills and low interest repayments when seeking out the cheapest home loans. Such a basic home loan will allow you to pay off the home loan faster because of the relative lower interest rate you will be paying. If you keep paying the same amount when rates fall you will get to paying off your loan even faster.
On the downside however, this type of home loan won’t come with any additional features and if interest rates were to rise you will have to pay more. It will pay you to make sure that if interest rates were to rise you would be able to meet the increased cost.
Featured Home Loan Comparison
| Home Loan | Details | Interest Rate (p.a.) | Comp Rate^ (p.a.) | App Fee / Ongoing Fee | Max LVR | Min & Max Borrowing | |
|---|---|---|---|---|---|---|---|
 Illawarra Home Loans Bank Beater Home Loan |
A very low variable rate, beaten down even further by 0.05% p.a. after 5 years. | 6.18% | 6.46% | $0 / $345 | 90% | $250,000 / $1,000,000 |
 
|
 State Custodians Mortgage Company Standard Variable Offset Loan |
Voted the best loan for first home buyers, this loan offers no application or ongoing fees and a stack of great features including unlimited redraw and 100% interest offsetting. | 6.22% | 6.45% | $0 / $345 | 95% | $150,000 / $2,500,000 |
|
 Resi Home Loans – Smart Option Home Loan |
The Smart Option Home Loan offers you a super low rate for 1 year. Plus no ongoing and no application fees. | 6.49% | 6.99% | $0 / $0 | 95% | $50,000 / $20,000,000 |
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Some basic variable interest rate home loans will also require you to pay a penalty if you wanted to make any additional payments. Make sure you read all the items in the small print before committing yourself. A basic variable interest rate home loan is best suited to a first home buyer or a younger purchaser on a limited income.
Australia’s most popular – the standard variable interest rate home loan is favourite because of its flexibility.
This type of home loan is offered by most banks and non bank lenders and is the most popular among Australian home buyer. It is much the same as the basic variable interest rate home loan but has more features added to it. It is therefore sold at a greater interest rate repayment than that of the basic home loan.
These loans can have features built in such as a redraw facility, the ability to split the loan between fixed and variable and flexibility which will allow you to make extra repayments without suffering a penalty for doing so.
A standard variable interest rate home loan is suited to most people buying their own home as well as those wishing to refinance.
A Fixed interest rate home loan could be the cheapest if you took it out during times of rising interest rates.
The fixed interest rate home loan can be used to your advantage during times of interest rate rises. The interest rate can be fixed for a period ranging from one year to five years, some lenders will allow even longer fixed interest rate periods.
At the expiration of the fixed interest rate period you will be given the opportunity to change the loan to a variable interest rate home loan or, if you wish, a further period with the loan interest being fixed. You could even opt for a split loan at this stage where a portion of the loan would remain fixed and the other a variable interest rate home loan.
A fixed interest rate home loan is valuable to home buyers who don’t want to run the risk of interest rates rising during the term of the loan. It therefore gives a certain peace of mind to those on a tight budget.
Related posts:
- Cheapest Home Loans
- Basic Variable Home Loans
- Types of Home Loans
- eChoice Basic Home Loans
- eChoice Fixed Rate Home Loans
- What Features do the different Home Loans have?
- Are Fixed Rates Better For Adelaide Home Loans?
- Best Home Loan Rates
- ANZ Three Year Fixed Rate Home Loan
- Basic Variable Loans
Top Home Loans
| Home Loan | Details | Interest Rate (p.a.) | Comp Rate^ (p.a.) | App Fee / Ongoing Fee | Max LVR | Min & Max Borrowing | |
|---|---|---|---|---|---|---|---|
 Loans.com.au - Dream Catcher | A home loan offer with a $0 application fee and one of the lowest available home loan interest rates. | 6.13% | 6.47% | $0 / $375 | 80% | $50,000 / $750,000 |
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 UBank UHomeLoan (Variable Rate) | One of the market leading variable interest rates. The maximum loan amount needs to be 80% of the property value. | 6.14% | 6.14% | $0 / $0 | 80% | $100,000 / $1,000,000 |
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State Custodians Mortgage Company Standard Variable Offset Loan | Awarded the 2011 Non bank Lender of the Year this feature-packed loan rewards customers with a bonus rate drop of 0.20% after 5 years. | 6.22% | 6.45% | $0 / $345 | 95% | $150,000 / $2,500,000 |
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