Savings.com.au has compiled some of the special home loan deals on offer from lenders across Australia.
Current low-rate home loans you may be interested in:
Base criteria of: a $400,000 loan amount, variable, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. Introductory rate products were not considered for selection. Monthly repayments were calculated based on the selected products’ advertised rates, applied to a $400,000 loan with a 30-year loan term. Rates correct as at 16 January 2020. View disclaimer.
People love free stuff. Whether it’s getting your tenth coffee free or winning a meat tray at the RSL, money and prizes won always seem sweeter than earned.
So if you’re spending hundreds of thousands of dollars over the next 25 odd years on a mortgage, it can be nice to get something in return. Enter home loan offers and deals.
These deals typically come in the form of cashback offers, but you can also get gift vouchers, loyalty program points and more. Reduced or promotional introductory interest rates are also commonplace.
Of course, these deals are designed to entice you – they shouldn’t be the sole reason for choosing a lender. Typically, the most important things to look at when choosing a loan are the advertised rate and comparison rate, the features, and your potential monthly repayments.
Also, make sure you fully read the Ts and Cs (that’s terms and conditions) on each lender’s website to get the full details on these offers before committing to one.
Home loan cashback offers
A home loan cashback offer generally involves a lender offering an incentive for you to take out a new loan with them or refinance an existing one. The incentive will usually take the form of cash, or it can be rebated towards fees you’d be charged – in some cases, both!
Generally, you can spend the money however you like, making cashback a lucrative marketing ploy.
The table below displays a range of available cashback offers available at the time of writing in Australia.
Note: P&I=Principal and Interest, IO=Interest Only, OO=Owner Occupier
|Bank of Melbourne||$2,000 cashback when you refinance.||For new owner-occupier with P&I repayments and Investment loans. Only available on the Advantage Package and Basic home loans. $395 annual package fee. $250k min loan per property refinanced. Excludes refinances from within Westpac Group.||31 January 2020|
|Bank of Sydney||$250 for you and a friend when you refer said friend for an OO loan.||Referrer must be an existing Bank of Sydney (BOS) customer. The referee must either hold or be approved for a BOS Transaction Account in order to qualify.||Until further notice|
|Bank SA||$2,000 cashback when you refinance.||For new Owner Occupier with Principal & Interest repayments and Investment loans. Available on our Advantage Package and Basic home loans. $395 annual package fee. $200k min loan per property refinanced. Excludes refinances from within Westpac Group.||31 January 2020|
|Commonwealth Bank||$2,000 cashback when you refinance.||Minimum refinance amount of $250,000. Not available for Bridging Loans and OO loans with IO payments.||10 January 2020|
|Credit Union SA||$2,500 cashback when you refinance.||Offer available on new IO and OO loans with minimum new borrowings of $150,000. Bridging loans are not eligible for this offer. Offer may be withdrawn or altered at any time without notice.||Until further notice|
|Hume Bank||$2,000 cashback when you refinance.||Cashback only available to approved refinanced OO loans with P&I repayments and a minimum loan amount of $200,000. $2,000 cashback must be deposited into a Hume Bank account held in the borrower’s name and will be deposited at settlement. Available to the first 60 approved applicants only.||31 November 2019|
|Mortgage House||$1,500 cashback when you refinance.||Refinance Double Down offer for new customers only:1 year or less with current lender – $600 application fee refunded after settlement.1 – 5 years with current lender – $600 application fee + $600 paid off home loan after settlement5+ years with current lender – $600 application fee + $900 paid off home loan after settlement.||Until further notice|
|MOVE Bank||$500 First home buyer bonus||When you take out any OO home loans. Settlement must take place 30/4/2020. Minimum loan amount $250,000. Offer excludes broker referred loans, internal refinance or IO loans. Must open an Express Saver or Everyday Saver to receive $500 deposit.||28 February 2020|
|NAB||$2,000 cashback when you refinance.$2,000 home buying bonus.||To be eligible for the $2,000 Home Buying bonus, customers need to drawdown a new home loan, or increase the limit of an existing home loan by $250,000 or more. Eligible NAB Home Loan products only. Customers must hold a NAB transaction account.To be eligible for the $2,000 NAB Home Loan Refinance Offer, customers need to be refinancing an existing loan of $250,000 or more and hold a NAB transaction account.||31 December 2019|
|QBank||$1,500 cashback when you refinance.||Applies to new home loan application with a minimum loan amount of $250,000, eligible for OO and investors. Applications must be settled within 60 days of the approval date to receive the cashback. $1500 cashback bonus will be deposited into the member’s QBANK transaction account within 5 business days of loan settlement.||Until further notice|
|St George||$2,000 cashback when you refinance.||For new OO with P&I repayments and Investment loans. Available on our Advantage Package and Basic home loans. $395 annual package fee. $250k min loan per property refinanced. Excludes refinances from within Westpac Group.||31 January 2020|
|Suncorp||$2,000 cashback when you refinance.||Applicable when you are approved for and settle an Eligible Home Loan with Suncorp Bank. Loan amount must be at least $250,000from a new bank with a Loan to Value Ratio of 90% or less.||Until further notice|
|Westpac||$2,000 cashback when you refinance.||Available on Premier Advantage Package and Flexi First Option loans. For new OO with P&I repayments and Investment loans. $250K min loan per property. $395 annual package fee. Excludes refinances from within Westpac Group.||31 January 2020|
Refer to the lenders’ websites for full terms and conditions
Discount rates, introductory rates & other offers
Lenders will often advertise products with a discounted rate to entice customers, across fixed and variable products. They’ll also often offer to waive fees such as monthly fees or application fees, or reduce fees and rates on their other products, like credit cards or transaction accounts.
Introductory rates (also known as honeymoon rates) are also commonly offered, which can particularly appeal to first home buyers. The lower rate, typically for one year, may entice younger audiences who don’t have as much disposable income as older generations and are looking to break into the housing market.
Less often, lenders will offer rewards points for loyalty programs, either as a result of a team-up or through their own program.
The table below displays a range of home loan discounts, introductory rates, and any other special home loan offers available at the time of writing in Australia.
Just be warned: sometimes the lower rates and fees advertised can actually revert to higher figures once the introductory period has expired, leaving you far worse off over time. So make sure you check this, and as always, read the Ts and Cs.
See the comparison rate warning* below. – link
|Lender||Loan name and offer||Conditions||Expiry date|
|Auswide Bank||Home Loan Plus With Freedom Package:Variable-rate discounted by 1.92% p.a. to 3.26% p.a. (3.66% p.a. comp rate*).Three year fixed rate discounted by 0.60% p.a. to 3.29% p.a. (4.17% p.a. comparison rate).||Only available in the ‘Home Loan Plus With Freedom Package’ loans. Minimum loan of $100k. Not available on existing loans, loans to fund investment property, loans with an LVR over 90%, ‘interest only’ loans, pre-approvals or for loans to overseas residents.||Until further notice|
|ANZ||ANZ Simplicity PLUS:Loan approval fee (usually $600) and renegotiation fee waived (usually $200-$350).Reduced rate of 4.28% p.a. (4.32% p.a. comparison rate*) for P&I and IO loans.||‘ANZ Simplicity PLUS’ home loan offers reduced rates compared to their standard variable rates. Will only waive fees upon request. Minimum loan amount of $50k.||Until further notice|
|Beyond Bank||Special Low Rate Variable Home Loan:No upfront or ongoing fees – save more than $500.||New OO home loans over $150,000 max 80% LVR. Parent Equity, Bridging, Land Rent Scheme, I&O, multiple security, and building/construction loans are not eligible.||Until further notice|
|Defence Bank||Essentials Home loan with Ultimate Package: No application, monthly or annual fees.15% discount on CGU Home, Contents and Landlords Insurance.No application fee on Car and Personal Loans.0.15% p.a. bonus rate on Term Deposits.||Introductory home loan offer only available for OO loans, new borrowings or a minimum $250,000 increase must be made to current loan. To be eligible applicants must take out or have the Ultimate Package or Essentials Home Loan.||Until further notice|
|Heritage Bank||Home Advantage Home Loan Package:Pay no application fee and save up to $600.||No application fee offer valid to approved applicants only for new standard variable, discount variable and fixed rate home loans and no annual fee for the first year of Home Advantage package loans. Offer not valid for living equity or line of credit loans, bridging loans, business loans, existing customers switching loans, or internal refinances.||30 November 2019|
|Horizon Bank||Home Sweet Home Loan: Two-year introductory rate of 3.29% p.a. (3.37% p.a. comparison rate) No upfront or ongoing fees.||The introductory rate is for 24 months. At the end of the 24 month period, the rate will revert to the Value Plus Home Loan rate applicable at the time. LVR can be less than or equal to 80%. For new owner occupied business only. Minimum loan $200,000.||Until further notice|
|HSBC||Premier Variable Rate Loan:Promotional rate of 3.22% p.a. (3.67% p.a. comparison rate*)Includes an HSBC Premier Master Card with HSBC rewards and no annual fee.||Promotional offer available on new borrowings from $50,000. Rate not available to non-residents. Excludes LVR above 80%. Maximum loan amount is $7,500,000.||30 November 2019|
|ING||Fixed-Rate Home Loan:When split with an Orange Advantage Home Loan, the $499 application fee is waived and a fixed rate discount of 0.10% p.a. will apply.||In OO borrowing, max LVR limits may apply.||Until further notice|
|loans.com.au||Smart Home Loan:Get a discount of 0.66% off the OO P&I rate if your LVR is 80% or less||Home loan application must be received on or after 6 March 2019. Must be for a new home loan.||Until further notice|
|MOVE Bank||MOVE Bank First Home Loan: Special One-Year Introductory Offer allows for a discounted rate of 3.19% p.a. (3.68% p.a. comparison rate*) for first home buyers.||First Home Loan – Special Introductory Offer discounted rate is fixed for 12 months from settlement date, after which it reverts to the First Home Loan variable rate.||Until further notice|
|NAB||NAB Base Variable Rate Home Loan: Get a discounted rate of 3.20% p.a. (3.24% p.a. comparison rate) for customers with an LVR of 80% or less.Special First Home Buyer Offer: Get a special rate of 2.88% p.a. (comparison rate 4.34% p.a.*) on a two year, fixed rate NAB Tailored – Choice Package P&I loan for OO borrowers.||Available on a new Base Variable Rate Home Loan of $20,000 or more. Available for new lending only. Not available in conjunction with any other discount offer that may apply to NAB Home Loans from time to time. The Discount Offer is a discount of 0.10% p.a. off the advertised two years Package Fixed Rate for Home Loans indicator interest rate, for borrowers making P&I repayments.||Until further notice|
|Newcastle Permanent||Real Deal Home Loan: Get a discount of 0.91% p.aa with an LVR of 90% or lessGet a discount of 0.64% with an LVR between 90% – 95%Three-year discount of 0.25%||Special interest rates are available for new borrowers applying for a Real Deal Home Loan for an OO home with P&I repayments with a minimum balance of $150,000. Existing Newcastle Permanent customers are also eligible to receive the special interest rates.||Until further notice|
|p&n Bank||Home Loan & Bag Intro Rate: Get a discounted variable rate of 3.15% p.a. (3.59% p.a. comparison rate*) for 12 months.||Variable 12-month introductory rate for OO borrowings up to 90% of the property value and a minimum loan amount of $150,000.||Until further notice|
|Police Bank||Low Goldrate Home Loan: Discounted rate of 3.18% p.a. (3.26% p.a. comparison rate*) with an LVR of 80% or less.||This Home Loan is only available to new OO borrowers. Not available for investment purposes or for refinancing of existing Police Bank loans. Home Loan cannot be taken in conjunction with any other offer, bonus or discount. Home Loan cannot be split with a fixed term or any other Police Bank Home Loan product.||Until further notice|
|QBank||Classic Home Loan: Discounted rate of 3.45% p.a. (3.48% p.a. comparison rate*) with an LVR of 95% or less.||Valid for home loan applications of $150,000 or more of new lending for OO and is available for a limited time only. IO not available. To qualify, the customer must deposit a salary credit of at least $1,500 a month into a QBANK transaction account.||Until further notice|
|Suncorp||Home Package Plus:Discounted three year fixed rate of 2.99% p.a. (3.84% p.a. comparison rate*).||Discounted rate special offer is only available for new personal/OO loans taken out as part of the Home Package Plus. Maximum LVR of 90% and minimum loan amount of $150,000. At the expiry of the three-year fixed rate term, the loan will revert to the applicable Standard Variable Rate advertised at the time less the Home Package Plus discount.||Until further notice|
|Virgin||Virgin Money Home Loans: Receive 100,000 bonus Velocity Points after settlement when you borrow between $300,000 and $999,999.If you borrow $1,000,000 or more, you’ll earn 200,000 bonus Velocity Points.||All customers who apply and are approved for an eligible Virgin Money Reward Me Home loan with total new borrowings of $300,000 – $999,999 with LVR of 90% or below will receive 100,000 bonus Velocity Points after settlement.All customers who apply and are approved for an eligible Virgin Money Reward Me Home loan with total new borrowings of $1,000,000 or more with LVR of 90% or below will receive 200,000 bonus Velocity Points after settlement.||29 November 2019|
Refer to the lenders’ websites for full terms and conditions
Savings.com.au’s two cents
As good as $2,000 cash in your pocket right now might sound, it shouldn’t be the defining factor for which home loan you choose. Borrowing $350,000 over 25 years at a rate of 4.00% p.a. could cost you $1,847 a month and $204,228 in interest over the life of the loan (with principal and interest repayments), according to our home loan calculator.
In contrast, that same loan at a rate 3.00% p.a. would cost you $1,659 a month and $147,922 over the life of the loan. That’s a difference of $188 a month and $56,306 in interest over the life of the loan, which makes that $2,000 or so look like pocket change.
Always consider the comparison rate and your estimated monthly repayments when choosing a loan. Making the wrong decision could cost you tens of thousands of dollars.
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:
- The big four banks are: ANZ, CBA, NAB and Westpac
- The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2019. They are (in descending order): Credit Union Australia, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
- The larger non-bank lenders are those who (in 2019) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.
Some providers' products may not be available in all states.
In the interests of full disclosure, Savings.com.au 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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