3.94% Mortgage House Summer special tops Finder's December home loans roundup

GUEST OBSERVER

We’re launching into yet another silly season, and there will no doubt be the annual holiday splurge – in fact, one estimate puts our nation’s Christmas spending to be around $8.9 billion.

And that’s on gifts alone! There is, however, a ray of hope for your back pocket: with variable interest rates on the move this month, you have even more opportunity to shop around for a better rate. On the off-chance that these rate rises continue, an offset can provide even more control over your loan by letting you slice interest off repayments based on your hard-earned savings.

Here are the lowest home loan rates on finder.com.au that also allow a 100% offset account.

finder.com.au’s lowest variable home loan rates with a 100% offset account

Mortgage House Summer Home Loan: 3.94%

With no application or ongoing fees, plus redraw facilities on top of your offset account, this home loan can provide some key cushioning for potential homeowners. Just be aware that you’re also signing up for a $395 legal, $200 Settlement and $450 discharge fee.

Bank of Queensland Clear Path: 3.99%

The Clear Path home loan will allow you to borrow up to 95% of the property’s value, while also waiving application fees and allowing for free redraws and repayments, which could pad out your mortgage nicely. You will have to crank the budgeting up a notch however, as you’ll then be factoring in a $10 monthly fee and a once-off settlement fee of $150. It’s advised you take some time to sit down and calculate the lifetime costs and benefits of your mortgage, especially in the case of revolving expenses. 

Bankwest Complete Home Loan Package: 4.08%

Let it be said from the get-go that this is a package deal, which usually entails an additional expense of some sort – in this case it’s a considerable $395 annual fee. This might be offset in the first year by no application or legal fees, and its split options, redraw and extra repayment facilities could be enough to pull this loan over the line for you. When it comes to considerable annual fees, it’s a good idea to make sure there’s enough funds sitting in your offset account to negate the rolling expense by the time it hits every year.

finder.com.au’s lowest variable home loan rates with a 100% offset account

Beyond Bank Total Home Loan Package: 4.09%

Perhaps just as powerful as a 100% offset account is the ability to also make free repayments, and this loan allows the best of both worlds. You can also borrow up to 95% of the property value, along with the ability to redraw funds should your financial standing get shaky. Again, this is a packaged home loan, and you will be slugged with a $395 annual fee, which will be exacerbated in the first year by a $150 settlement fee.

Mortgage House 100% Offset: 4.39%

Nothing says freedom like no monthly or annual service fees – which is something recipients of this loan will experience. There is also no application fee tied to this loan, and you will be able to make additional repayments and be able to redraw. Just make sure you have some funds available at all times, as the $200 settlement fee will hit you in the earlier stage of the loan, while the $450 discharge fee will come around at the tail-end of the loan.

St. George Fixed Rate: 4.44%

This loan comes with a waived legal and valuation fee, along with the ability to split your loan and make extra repayments and redraws. That being said, there are some serious fees that come with this product, including a $600 application, $10 monthly service, $100 settlement and $350 discharge fee. This loan could be your best option – but without doing your homework first, these fees could drown your budget and leave your head underwater for the next 30 years. Tread the water carefully!

Bessie Hassan is consumer advocate at finder.com.au.