Cheapest Home Loans
Seeking out the cheapest home loans is a worthwhile exercise. You can potentially save a lot in interest over the years. However, if you are looking for more feature rich features such as offset accounts, you may need to consider some more premium feature rich home loans. If you are in the market for a low rate home loan there are a number of online lenders and banks that offer low variable and fixed rate home loans.
Basic variable interest rate no frills home loans.
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 Low Rate Home Loan
Loans.com.au Dream Catcher home loan offers one of the lowest interest rate in the market with $0 application and split loan facility.
- Interest Rate of 5.85%
- Comparison Rate of 6.21%
- Application Fee of $0
- Maximum LVR With LMI: 80%
- Minimum Borrowing: $50,000
- Maximum Borrowing: $750,000
Featured Home Loan Comparison
| 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. | 5.85% | 6.21% | $0 / $375 | 80% | $50,000 / $750,000 |
 
|
 Bankwest Online Home Loan |
One of the low interest home loan offered by Bankwest with a low application and ongoing fee. | 5.97% | 5.97% | $0 / $0 | 80% | $100,000 / $1,000,000 |
|
 ME Bank Members Package – Eligible members with a Member Package |
A low rate home loan with a low ongoing fee. | 6.49% | 6.49% | $0 / $395 | 80% | $50,000 / $2,500,000 |
|
 Illawarra Home Loans Bank Beater Home Loan |
A very low variable rate, beaten down even further by 0.05% p.a. after 5 years. | 6.07% | 6.35% | $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. | 6.02% | 6.23% | $0 / $345 | 95% | $150,000 / $1,000,000 |
|
Loans.com.au – Dream Loan Express – 2 Year Fixed Rate |
A home loan offer with $0 application fee and one of the lowest available fixed rate options in market. | 5.68% | 6.07% | $0 / $0 | 80% | $50,000 / $750,000 |
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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
- My Mortgage Freedom Home Loans
- Types of Home Loans
- eChoice Basic Home Loans
- Basic Variable Loans
- Best Home Loan Rates
- Are Fixed Rates Better For Adelaide Home Loans?
- eChoice Split Rate Home Loans
- Home Loans for the Self Employed
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. | 5.85% | 6.21% | $0 / $375 | 80% | $50,000 / $750,000 |
|
Bankwest Online Home Loan | A low interest rate home loan with a $0 application fee and ongoing maintenance fees. This offer is exclusively available by applying online. | 5.97% | 5.97% | $0 / $0 | 80% | $100,000 / $1,000,000 |
|
Illawarra Home Loans Bank Beater Home Loan | A low variable rate, beaten down even further by 0.05% p.a. after 5 years. | 6.07% | 6.35% | $0 / $345 | 90% | $250,000 / $1,000,000 |
|
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 0.25% after 5 years. | 6.02% | 6.23% | $0 / $345 | 95% | $150,000 / $1,000,000 |
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