The low-rate environment is very appealing for Australians who want to purchase their first house or refinance a mortgage.

The Reserve Bank of Australia (RBA) has maintained 0.1% cash rate for this month. Mortgages have remained at their lowest levels.

Raj Ladher is a specialist mortgage broker and stated that interest rates would likely remain relatively stable over the next 12-24months with gradual increases of the banks. 

“In the scheme of things with interest rates still being in the two’s, money is still very cheap so if you are planning on reviewing your loan in the near future, it may pay dividends to review it sooner rather than later,” Mr Ladher said.

Variable home loans are available to aid borrowers in finding great deals on the market.

Smart Booster Loan (2 Year Special Offer).

Interest Rate: 1.85% p.a. Booster Home Loan provides first-time homebuyers a discount variable interest rate. This product provides a discounted variable rate at 1.85% an year for a term of two years. It is the lowest industry rate. 

The loan is available to owner-occupiers who borrow up to 80% of their maximum loan-to-value ratio (LVR). The discount rate is available to homeowners, first-time buyers, and refinancers. The rate will automatically rollover to the standard variable rates of 2.255% p.a. After the two-year period.

Smart Booster Home Loans are not subject to ongoing or monthly charges. Additional fees are not required for applications.

Strategic borrowers have the option to request additional repayments on top of their monthly payments without any additional charges. A redraw option is also available that allows you to access extra repayments for no additional cost.

Smart Booster Home Loans require an offset account. Remember that the offset account will cost 0.10% more. Compare the comparison rate. Borrowers with an offset sub-account won’t be charged any monthly or ongoing fees.

Smart Booster Home Loans offer a 1-year variable discount of 1.99% p.a. These are the same features. 

Live-in Variable P&I

Lender: Tic:Toc Home Loans
Interest Rate 1.89% p.a.

Tic:Toc Home Loans offers one of most competitive variable rates available. Its Live-in Variable offer for owner-occupiers paying P&I has an interest rate of 1.89% p.a.

First-home buyers looking for an early start can apply for this home loan. You only need to deposit 10%. Lender’s Mortgage Insurance will be required for homebuyers who want to borrow more than 80-90% of the property’s price.

The Live-in Variable loan does not have any upfront or ongoing fees. Borrowers who have the ability to repay their loans on time can make additional repayments without any cost. Online redraws may be made at no charge.

An offset account is available for $10 per monthly for smart borrowers who want to save more on their loans. You can add an offset account, but it is not mandatory.

Super Saver Variable

Lender:Lowest Home Loans
Interest Rate 1.88% p.a.

Buyers looking to purchase their first home will find the Super Saver Variable Loan from Reduce Home Loans at 1.88% an annual rate. for P&I repayments. This rate is also available to refinancers. 

This loan splitting option is beneficial for borrowers who want to lock in a portion of their loan at an agreed-upon rate. 

Additional payments are easy to make and you can do it at any time, without penalty. There are no minimum withdrawal requirements. Redraw facilities are also available. 

For the SuperSaver Variable Loan, there is a $440 fee. The ongoing fees for Reduce Home Loans are not charged and there are no additional charges. 

Star Essential Home Loan

Lender: Homestar Finance
Interest Rate 1.99% p.a.

Homestar Finance’s Star Essential Home Loan allows borrowers to have both simplicity and basic features. 

This loan product is for owner-occupiers with P&I repayments. LVRs greater than 80% are not eligible.  

The mortgage product provides four free loan splits and online redraws. This product allows borrowers to borrow $20,000 more each year but does not allow them to split the loan.

Star Essential Home Loan is an easy option. This loan does not offer an offset account.

Refinancers can get all-in-one home loans

Lender: Nano Home Loans
Interest Rate: 1.99%

Nano Home Loans’ variable-rate loan at 1.99% is designed to attract refinancers. This rate is available to owner-occupiers paying P&I. Refinancers who have the All-in-1 Home can get a 100% offset sub account for free.

Nano Home Loans’ speedy approval process is what sets it apart. Online applications are available, saving borrowers time and the hassle of filling out paperwork. 

You will not be charged an application fee, but the LVR requirement of 75% must be met in order to qualify for the loan.

Are you searching for a loan to buy a house? More loan options can be found by using Your Mortgage’s Home Loan Comparison Tool.