Buying a home or looking to refinance? The table below features home loans
with some of the lowest interest rates on the market for owner occupiers.
Product Features
Monthly repayments: $1,476
Advertised
Rate (p.a.)
Comparison
Rate (p.a.)
Product Features
Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. If products listed have an LVR <80%, they will be clearly identified in the product name along with the specific LVR. The product and rate must be clearly published on the Product Provider’s web site. Monthly repayments were calculated based on the selected products’ advertised rates, applied to a $400,000 loan with a 30-year loan term.
A honeymoon interest rate, also simply known as an introductory interest rate, is a temporarily lower interest rate offered at the beginning of a home loan term for a set period of time. At the end of this introductory period, the interest rate switches to an ongoing revert rate , which is usually much higher and in line with the lender’s other mortgage products.
Honeymoon interest rates can be useful in the short-term, as they can offer some serious introductory savings, but they can hurt you in the long-term as the revert rate might be higher than the interest rates on other products. Plus, lenders sometimes charge higher switching fees for such loans to discourage people from changing once the honeymoon period is over.
To work out the repayments and total cost of a home loan with a honeymoon (introductory) interest rate, use our introductory interest rate calculator.
Savings.com.au’s introductory interest rate calculator
can be used to let you work out the difference in repayments
between the introductory period and after the introductory
period ends.
All you need to do is enter:
This should give you an idea of whether you’ll be able to afford the mortgage’s repayments once the revert rate kicks in.
The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:
Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site.
In the interests of full disclosure, Savings.com.au, Performance Drive and Loans.com.au are part of the Firstmac Group. To read about how Savings.com.au manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.
*The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
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