Cheapest Home Loan Award: Best of the Best 2018

Cheapest NON-BANK

NON-BANK GOLD WINNER: REDUCE HOME LOANS

 

The Reserve Bank may have left the official cash rate at a record low of 1.5% in November but there’s still a massive 2.28% difference between the cheapest and dearest variable rates on Canstar’s database.

 

The cheapest, courtesy of our non-bank winner Reduce Home Loans, has an advertised rate of just 3.39%. The dearest, which you won’t find in these awards, is 5.7%.

Queensland-based Reduce has picked up the top award for the third year in a row.

Its Rate Buster standard variable loan allows unlimited extra payments and redraws (but repayment frequencies are only monthly or fortnightly).

Borrowers who maintain a good repayment history over five years may even be eligible for a discount.

If you need to borrow more than 80% of the purchase price, then our second placegetter (also from Reduce) may suit.

This loan allows you to go up to 90% (lenders mortgage insurance is payable) but you will have to add 0.25% to the advertised rate.

 

Money Magazine's Cheapest home loan
INSTITUTION PRODUCT RANKING COST ADVANCED RATE UPFRONT FEES ANNUAL FEES REDRAW
Reduce Home Loans Rate Buster $171,127 3.39% $1164 None Yes
Reduce Home Loans Rate Buster Offset $176,289 3.54% $900 None Yes
Source: CANSTAR. *Limited time offer.
The winners were ranked by the total cost of the loan – the interest cost plus fees – using 50% advertised rate and 50% average 6-month historical rate, for a $350,000 mortgage over 25 years, 80% LVR. Loans had to offer redraw. Must be available for principal and interest loan payments.

 

Visit Magshop to subscribe to Money or order your copy of Best of the Best 2018.

See more from Best of the Best 2018 here or grab the December issue for full details.

Reduce Home Loans is thrilled to be recognised for tis award.

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