Home Loan Interest Rates – A Complete Guide

Home is where the heart rests, and everyone deserves one. Think back to your childhood. Your best memories come from hiding, playing, and dancing in your first home. A place you called your own.

Everyone strives to give their family the security of a home. But in the current state of the economy, buying a house is more difficult than ever. With property rates skyrocketing and average incomes going down, the dream of being a home-owner seems unattainable at times.

Sadly, alternatives like renting or leasing are also not feasible. Rent rates are at an all-time high, and there is minimal security in renting as well. Thankfully, many banks today offer home loans that can help you realize your dreams. 

Features of Different Home Loans Offered by Banks

There are innumerable options that you can choose when taking a home loan. Here’s a guide to the three most popular loans in Australia along with their interest rates so that you can make an informed decision. 

U Home Loan 

U Home Loans are a smart option for first-time borrowers. It has many features that make the repayment process convenient. U Home has excellent local support that has loan experts support you through the whole process. 

Interest Range

The interest on these home loans is 2.59% – 3.5% per year.

Features

  • You can borrow up to 80% of the total purchasing amount of the property.
  • The application process takes less than 5 minutes.
  • The repayment terms are highly flexible as you can choose between weekly, fortnightly and monthly repayments. You can even make extra repayments for free on variable loans.

Fees

  • There is no application, ongoing, or annual fee on variable loans.
  • If you happen to take a fixed loan, there is a one-time rate lock fee of $395.

Australian Unity Health Wealth Happiness Home Loan

Health Wealth Happiness Home Loan is an excellent loan option for people who want flexibility. It has tons of features that can help you mould your purchasing experience according to your capabilities. You can apply for the loan through their website.

Interest Range

 In the interest on this loan ranges from 3.05% to 3.08% per annum.

Features

  • You can borrow exactly as much as you need with amounts ranging from $200,000 to $2.5 million.
  • If you need urgent cash, you can redraw the amount you have already deposited as loan repayment as long as you have paid a minimum $500. Redrawing is also highly convenient as you can do it through mobile banking apps.
  • You can set your installments at weekly, fortnightly, and monthly payments.
  • Save on interest by making additional payments any time you want.

Fees

  • There is no additional monthly or annual fee other than the rate of interest.
  • There is a single establishment fee of $600, which can give you access to extra savings and rate discounts. It is not a compulsory fee.

Smart Home Loan

As its name suggests, Smart Home Loan is a brilliant choice in home financing. Along with a super low rate of interest, the plan has minimal fees and extremely flexible terms. The application process is super simple and can be done through the website. Their loan specialists help you every step of the way. 

Interest Rate

The interest rate for this loan in quoted at 2.63% per year.

Features

  • You can redraw as much as you want for no cost at all. The number of redraws is also unlimited.
  • You can make unlimited additional payments outside of your monthly installments. This will help you save on the amount of interest you owe.
  • Like its competitors, the installments can be set up weekly, fortnightly or monthly.
  • You can make easy repayments through direct debit card arrangements.

Fees

  • There is no monthly, annual, or one-time application fee to acquire this loan.

The Bottom Line

Now that you are familiar with popular loan rates in the country make sure you use loan amortization calculators before making a decision. If possible, run your financials by an accountant or someone in the finance industry to be extra-sure of your capabilities. 

No matter how much you plan, borrowing money can always be risky. Make sure you go through all the terms and conditions of the various banks carefully before applying. Lastly, no matter how intimidating and impossible buying a home may feel, believe in yourself and go for it.