Six essential home loans: finder.com.au's Michelle Hutchison

GUEST OBSERVER

A cash rate rise is coming to the Australian property market – experts are confident of that much.

When that rise will come, however, is a little unclear – 30% of respondents in the finder.com.au Reserve Bank Survey predict a rate move before the year is out, while more than half don’t expect any upward movements until at least 2017. In the meantime, we’re seeing out of cycle rate hikes hit the market, just weeks out from Christmas.

If you’ve been considering a home loan but haven’t yet made the plunge, now may be time to make the transition without worrying about further hikes.

Here are the lowest variable and 3-year fixed home loans on finder.com.au with no ongoing fees.

finder.com.au’s lowest variable rate home loans with no ongoing fees

1.     Mortgage House Summer Home Loan: 3.79%

This low rate is available for a 12 month period, at which point the rate will revert to 3.99%. It allows for a 100% offset account, the benefit of no application fees and additional repayment and redraw features. Provided you’ve braced for the $200 settlement, $450 discharge and $395 legal fees.

2.     Reduce Home Loans Rate Buster Fee Free: 3.85%

If you’re the type of person who can save a 30% deposit and still have a little left over to foot the $440 application and $130 settlement fees, this loan is a worthy contender among your options. The 100% offset account, repayment and redraw facilities as well as splitting options all give you the tools to create a formidable financial product. 

3.     loans.com.au Essentials Home Loan: 3.98%

While you won’t be accessing a 100% offset account  with this loan, you can put ongoing, legal and application fees worries to rest. This is particularly powerful when paired with the ability to make unlimited additional repayments, slicing interest off your mortgage. Just have your 20% deposit saved up, as you’ll only be able to borrow up to 80% of the total property value.

finder.com.au’s lowest 3-year fixed home loans with no ongoing fees

1.     Newcastle Permanent Fixed Rate Home Loan: 3.89%

This loan is not only a super low rate but it’s fee-friendly – there’s no application, legal, valuation or settlement fees. You can also make additional payments to this loan but beware, as you will not be able to access this money once you do decide to make those deposits.

 2.     CUA Fixed Rate Home Loan: 4.09%

This low rate comes with a high application fee, but don’t be disheartened by the $600 application tag – this loan has some great cushions to soften the blow. With no valuation fees, the ability to make additional repayments (capped at three repayments for the fixed period) and the ability to switch into interest only options, this flexible number can get your house on its feet sooner, provided you manage it well.

3.     Australian Unity Health, Wealth and Happiness Fixed Rate Package: 4.15%

If you can swallow a $600 settlement fee, don’t need to borrow more than 90% and are okay with no 100% offset account, this home loan is a serious heavyweight in the fixed space. With no application, legal or valuation fees and the ability to redraw your extra deposits, there is still quite a bit of breathing space in this low rate loan.

MICHELLE HUTCHISON is spokesperson for comparison website finder.com.au.