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.
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