When shopping for a home loan a big consideration is a low interest rate. Why? Because the lower the interest rate, the less money you’ll hand over to your bank every month. For this reason finding the lowest home loan rates is important in making sure you are getting a good deal.
A home loan is a long-term commitment so it’s a good idea to research and compare the interest rates available. See what each lender is offering and compare each product to work out whether you are getting a good deal.
Should I take out a variable home loan?
Also keepx in mind that if you opt for a variable home loan you will be subject to fluctuating interest rates. This means that while you may be choosing one of the lowest home loan rates now it could go up in the future. With that said, there are also advantages to a variable home loan, because if the interest rate drops you’ll find yourself with more money in your pocket every month.
Compare variable rate home loans below and read further information on the difference between fixed and variable loans.
What if the rate is just an introductory offer?
When looking at which home loan has the lowest interest rate remember that some low rates are only an introductory offer. These low rate home loan offers come with an expiry date and when your time is up you could be hit with high interest rates for the rest of the loan.
While this can be a good way of easing yourself into home loan payments, especially for first home buyers, check the revert rate against the average mortgage interest rate to make sure you’re not getting yourself into a bad deal.
What are some other important features of a loan?
Other features of a mortgage are just as important as getting the lowest home loan rate so don’t let yourself be blinded by a seemingly great deal. If you have plans to use a redraw facility on your mortgage, or to be able to make extra repayments towards your principal, check that it will be possible with the loan that you choose.
You may also want to see if you can make lump sum repayments towards your home loan at any time without incurring an extra fee. Being able to put extra money towards your home loan can cut years and dollars off your mortgage so can be just as important in saving you money as a low interest rate.
*The phrase ‘some of the lowest’ is not a recommendation or rating of products. This page compares a range of home loans from selected providers, not all products or providers are included in the comparison. No home loan is one size fits all. The best home loan for you will not be the best home loan for someone else. As a result, it's worth getting advice on whether a product is right for you before committing.