Home loan

How to get a mortgage rate that starts with a ‘1’

The pain of rising rates is now a reality for millions of Australian mortgage borrowers, following the Reserve Bank’s decision to raise the official exchange rate in May. As the golden age of record high mortgage rates comes to an end, the good news is that it’s still possible to find ultra-low variable mortgages below 2.00%.

The average variable rate currently sits at 3.05%, but at the super competitive end of the market, top online lenders such as loans.com.au, Nano, Yard and Qudos Bank are attracting savvy borrowers with variable rates which always start with a ‘1’.

Mozo Money expert Kirsty Lamont said, “With interest rates set to rise 1.00% over the next 12 months, now is the time to make sure you’re not paying too much on your home loan. Switching to a cheaper loan is a surefire way to offset the pain of rising rates.

Read on for Editor Mozo’s roundup of some of the best low-rate home loans on the market and see how much you could save by switching.



Nano – Variable real estate loan
  • Variable rate and comparison rate of 1.99%* (refinancers only)
  • Free clearing account + zero upfront or ongoing fees
  • Mozo Experts Choice Best New Home Loan of 2022 ^

The details:
Digital lender Nano has launched what it claims to be the fastest home loans in the world, with an all-digital approval process that they claim can see you approved in as little as 10 minutes. Refinancers will benefit from an ultra-low variable rate, zero Nano fees, and a wide range of flexible features, including unlimited additional repayments, a free re-draw, and a 100% free clearing account. Available for loans up to $2,500,000. Minimum 80% LVR.

Court – Special variable real estate loan
  • Variable rate of 1.99% (comparison rate of 2.02%*) – Application until May 31
  • 100% cleared account option + free extra refunds and re-draw
  • Available to borrowers with 80% equity in their property

Learn more

The details:
Looking for a home loan that could save you money in the long run without having to sacrifice flexible features like an offset account and easy recalculation? Then don’t miss this special offer on variable home loans from the competitive online lender Yard. Benefits include unlimited additional redemptions, free withdrawal and no ongoing fees, and you can choose to add a 100% clearing account for an extra $10 per month. Plus, Yard’s simple online application makes it easy to apply.

Want to compare more home loans? Check out the latest mortgage rates from over 80 lenders on Mozo’s Home Loan Comparison Center.

ATTENTION: This comparison rate only applies to the example or examples given. Different amounts and durations will result in different comparison rates. Costs such as withdrawal charges or prepayment charges, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate shown is for a secured loan with monthly principal and interest repayments of $150,000 over 25 years.

Initial monthly repayment figures are estimates only, based on the advertised rate, loan amount and term entered. Rates, fees and charges, and therefore the total cost of the loan, may vary depending on your loan amount, loan term and your credit history. Actual repayments will depend on your personal circumstances and changes in interest rates.

^ See Mozo Experts Choice Home Loan Awards information

Mozo provides general product information. We do not take into account your personal goals, financial situation or needs and we do not recommend any particular product. You must make your own decision after reading the PDS or offering literature, or after seeking independent advice.

Although we pride ourselves on covering a wide range of products, we do not cover every product on the market. If you choose to request a product through our website, you will be dealing directly with the supplier of that product and not with Mozo.

Source link