News

by Michelle Hutchison

As the year kicks off, home loan deals seem to be getting better as lenders increase competition. Some of the biggest lenders in the country including NAB and Westpac have been dropping their fixed rates this year.

With the Reserve Bank keeping the cash rate at its current historic low of 2.50% for March, now is the chance for borrowers to lock in the low rates currently on offer.

We’re seeing some strong competition in both fixed and variable rate home loans at the moment, so there are loans out there that could help boost your savings.

Take a look at our breakdown of the home loan deals offering the lowest rates for March.

1 Year fixed rate home loans

*Rates based on a $300,000 home loan with 30 year terms

UBank UHomeLoan – 1 Year Fixed Rate

Interest rate: 4.38% p.a.

This competitive loan option from UBank features no application fees, no monthly account keeping fees and a split loan facility, as well as other features.

HSBC Fixed Rate Home Loan  – 1 Year Fixed Rate

Interest rate: 4.49% p.a.

This loan is suitable for investment or owner-occupied properties and also comes with a low doc option available. You also have the option of making extra repayments every year without being charged during the fixed term period.

Illawarra Home Loans First Home Fast Track Home Loan – 1 Year Fixed

Interest rate: 4.59%

Illawarra Home Loans offers a loan which is low on setup costs, doesn’t charge any ongoing fees, and like most loans it helps first home buyers by letting them add Lender’s Mortgage Insurance to their loan. There is also a loan redraw facility and flexible repayment options.

Variable rate home loans

*Rates based on a $300,000 home loan with 30 year terms

Loans.com.au Dream Home Loan – Variable Rate, <80% LVR

Interest rate: 4.49% p.a.

This loan features a competitive interest rate with a 100% offset account and a split loan facility available. All this with no application fees or annual fee.

UBank UHomeLoan – Variable Rate

Interest rate: 4.62% p.a.

This is a ‘no frills’ home loan that rewards you with a loyalty discount if you keep the loan for longer than three years. Also, they are currently offering a $2,014 EFTPOS gift card when you apply by March 6 and settle your loan with them by April 6.

Rams Discount Home Loan – Variable Rate

Interest rate: 4.65% p.a.

This is a flexible loan option from Rams that offers flexible repayments options, a competitive interest rate, plus a high Loan to Value Ratio of 95%, so you don’t have to save as much of a deposit as some loans, which can get you into your own home sooner.

Low interest rates aren’t the only incentives lenders are offering to try and encourage people to sign up for new home loans. We’ve recently seen some generous home loan rebates come onto the market in the form of cash back offers and gift cards.

There are currently five different types of home loan incentives available, including cash back, waived fees, discounts, competitions and rewards points.

It’s good to keep an eye out for these incentives, as they can be an added bonus on an already low rate home loan.

If there’s one kind of loan you don’t want to get complacent about, it’s your home loan. So whether you’re a first homebuyer, an investor, or someone looking to refinance, compare your options so you can find the best loan for you.