Best Home Loan rates 1st half of 2017

Best Home Loan rates 1st half of 2017

In order to find the best home loan, it is essential to understand the different characteristics and factors that one must consider. This blog post will compare the best home loan rates we have seen through the LoanDolphin auction platform, and explore what other aspects of a home loan are important to focus on when looking for the best home loan.

Best Home Loan Rates: Owner Occupier

All of these have been seen in the 1st half of 2017. Due to the fast changing rates environment, these rates could change anytime.

Principal & Interest Rates

  1. Mortgage Ezy
    • Rate: 3.49%
    • Comparison Rate: 3.51%
    • Application Fees: $440.00
    • Ongoing Fees (Per Annum): $0.00
    • Max. LVR: 80%
    • Features: Offset, Redraw, Extra Repayments
  2. Mortgage Ezy
    • Rate: 3.54%
    • Comparison Rate: 3.58%
    • Application Fees: $250.00
    • Ongoing Fees (Per Annum): $395.00
    • Max. LVR: 80%
    • Features: Offset, Redraw, Extra Repayments
  3. Mortgage Ezy
    • Rate: 3.59%
    • Comparison Rate: 3.62%
    • Application Fees: $440.00
    • Ongoing Fees (Per Annum): $0.00
    • Max. LVR: 80%
    • Features: Offset, Redraw, Extra Repayments
  4. Mortgage Ezy
    • Rate: 3.64%
    • Comparison Rate: 3.68%
    • Application Fees: $440.00
    • Ongoing Fees (Per Annum): $0.00
    • Max. LVR: 80%
    • Features: Offset, Redraw, Extra Repayments
  5. Newcastle Permanent
    • Rate: 3.65%
    • Comparison Rate: 4.35%
    • Application Fees: $450.00
    • Ongoing Fees (Per Annum): $295.00
    • Max. LVR: 80%
    • Features: Extra Repayments
  6. Gateway Credit Union
    • Rate: 3.67%
    • Comparison Rate: 4.05%
    • Application Fees: $0.00
    • Ongoing Fees (Per Annum): $299.00
    • Max. LVR: 95%
    • Features: Offset, Redraw, Extra Repayments
  7. Bank of Sydney
    • Rate: 3.69%
    • Comparison Rate: 4.09%
    • Application Fees: $0.00
    • Ongoing Fees (Per Annum): $395.00
    • Max. LVR: 80%
    • Features: Offset, Redraw, Extra Repayments
  8. Gateway Credit Union
    • Rate: 3.73%
    • Comparison Rate: 4.05%
    • Application Fees: $0.00
    • Ongoing Fees (Per Annum): $299.00
    • Max. LVR: 80%
    • Features: Offset, Redraw
  9. Advantedge
    • Rate: 3.74%
    • Comparison Rate: 3.99%
    • Application Fees: $0.00
    • Ongoing Fees (Per Annum): $120.00
    • Max. LVR: 80%
    • Features: Redraw, Extra Repayments
  10. AMP Bank
    • Rate: 3.79%
    • Comparison Rate: 4.16%
    • Application Fees: $0.00
    • Ongoing Fees (Per Annum): $349.00
    • Max. LVR: 80%
    • Features: Offset, Redraw, Extra Repayments
  11. Bendigo Bank
    • Rate: 3.88%
    • Comparison Rate: 4.18%
    • Application Fees: $600.00
    • Ongoing Fees (Per Annum): $240.00
    • Max. LVR: 95%
    • Features: Offset, Redraw, Extra Repayments

Interest Only Rates 

  1. ING Direct
    • Rate: 3.59%
    • Comparison Rate: 4.32%
    • Application Fees: $0.00
    • Ongoing Fees (Per Annum): $199.00
    • Max. LVR: 80%
    • Features: Offset, Redraw, Extra Repayments
  2. Bank of Sydney
    • Rate: 3.69%
    • Comparison Rate: 4.09%
    • Application Fees: $0.00
    • Ongoing Fees (Per Annum): $395.00
    • Max. LVR: 80%
    • Features: Offset, Redraw, Extra Repayments
  3. Heritage Bank
    • Rate: 3.79%
    • Comparison Rate: 3.81%
    • Application Fees: $600.00
    • Ongoing Fees (Per Annum): $0.00
    • Max. LVR: 90%
    • Features: Redraw, Extra Repayments
  4. Bendigo Bank
    • Rate: 3.88%
    • Comparison Rate: 4.18%
    • Application Fees: $600.00
    • Ongoing Fees (Per Annum): $240.00
    • Max. LVR: 95%
    • Features: Offset, Redraw, Extra Repayments
  5. Westpac
    • Rate: 4.29%
    • Comparison Rate: 5.46%
    • Application Fees: $0.00
    • Ongoing Fees (Per Annum): $395.00
    • Max. LVR: 90%
    • Features: Offset, Redraw, Extra Repayments

Best Home Loan Rates: Investment

All of these have been seen in 2017. Due to the fast changing rates environment, these rates could change any time.

Principal & Interest Rates 

  1. Mortgage Ezy
    • Rate: 3.79%
    • Comparison Rate: 3.88%
    • Application Fees: $440.00
    • Ongoing Fees (Per Annum): $0.00
    • Max. LVR: 80%
    • Features: Offset, Redraw, Extra Repayments
  2. NAB
    • Rate: 3.88%
    • Comparison Rate: 5.33%
    • Application Fees: $0.00
    • Ongoing Fees (Per Annum): $395.00
    • Max. LVR: 80%
    • Features: Redraw, Extra Repayments
  3. Bank of Queensland
    • Rate: 3.99%
    • Comparison Rate: 5.21%
    • Application Fees: $0.00
    • Ongoing Fees (Per Annum): $395.00
    • Max. LVR: 90%
    • Features: Offset, Redraw, Extra Repayments
  4. ING Direct
    • Rate: 4.04%
    • Comparison Rate: 4.06%
    • Application Fees: $0.00
    • Ongoing Fees (Per Annum): $0.00
    • Max. LVR: 80%
    • Features: Redraw, Extra Repayments
  5. Bank of Queensland
    • Rate: 4.09%
    • Comparison Rate: 4.22%
    • Application Fees: $0.00
    • Ongoing Fees (Per Annum): $120.00
    • Max. LVR: 80%
    • Features: Redraw

Interest Only Rates 

  1. Newcastle Permanent
    • Rate: 3.74%
    • Comparison Rate: 4.12%
    • Application Fees: $0.00
    • Ongoing Fees (Per Annum): $395.00
    • Max. LVR: 95%
    • Features: Offset, Extra Repayments
  2. FirstMac
    • Rate: 3.84%
    • Comparison Rate: 3.85%
    • Application Fees: $720.00
    • Ongoing Fees (Per Annum): $0.00
    • Max. LVR: 80%
    • Features: Redraw, Extra Repayments
  3. Westpac
    • Rate: 3.88%
    • Comparison Rate: 5.36%
    • Application Fees: $0.00
    • Ongoing Fees (Per Annum): $395.00
    • Max. LVR: 90%
    • Features: Redraw, Extra Repayments
  4. ME Bank
    • Rate: 3.89%
    • Comparison Rate: 3.99%
    • Application Fees: $0.00
    • Ongoing Fees (Per Month): $10.00
    • Max. LVR: 90%
    • Features: Redraw, Extra Repayments
  5. Westpac
    • Rate: 3.99%
    • Comparison Rate: 4.70%
    • Application Fees: $0.00
    • Ongoing Fees (Per Annum): $395.00
    • Max. LVR: 90%
    • Features: Offset, Redraw, Extra Repayments

What else should be considered?

Comparison Rate: Helps the customer understand the true cost of a loan –> interest rate + fees displayed as a single percentage

Fees:

  • Application fee: Fee charged to process an application for a loan
  • Ongoing fees: Fees charged either monthly or annually for account keeping and services

Maximum LVR:

  • LVR: Loan to Value Ratio
  • Lenders use LVR to decide if your home loan needs to be covered by Lenders Mortgage Insurance (LMI)
  • For example, if a lender sets their Maximum LVR at 80%, you will only have to pay LMI if your loan to value ratio exceeds that percentage

Features:

  • Offset account: A transaction account linked to your mortgage account. Money in this account is used to offset your loan balance in order to reduce the amount of interest you pay.
  • Redraw facility: Allows you to withdraw any additional home loan repayments you have made whenever you need to.
  • Extra repayments: You can pay extra money in addition to your required loan payment to help pay off your loan amount quicker.

Why focus on these factors?

The cheapest home loan may not be the one with the lowest interest rate. It is important that you consider all other factors of a home loan in order to understand its real value.

The definition of the best home loan differs depending on the individual. Finding the best home loan depends on your personal financial situation and what you are looking for.

When comparing home loans, don’t limit yourself to only focusing on the interest rate. Even though that is an important factor to consider, the features mentioned above could change the loans overall value.

What are the steps to getting the best home loan?

You can find the best home loan for you by focusing on three aspects:

  1. The options the loan offers: offset account, redraw facility, extra payments
  2. The price: the interest rate and fees associated with the loan
  3.  Your eligibility for the loan: your credit rating, employment, etc.

By focusing on these three aspects when comparing loans, you will be one step closer to finding the home loan that best fits your needs.

How can LoanDolphin help?

A platform like LoanDolphin is the ideal place to compare loans to their full extent. All the information you need to consider when comparing loans is available in one place.

Through our auction platform, lenders will compete for your bid, making the process of finding the best home loan for you much easier.

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