Best home loan in Australia

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Checklist

        1. How long does redraw take?  Available 24×7?  Cost of redraw?  100% approval (or chance of decline)?
        2. Are extra repayments unlimited?
        3. What are all the fees?

Redraw vs Offset

Couple of interesting articles from whirlpool forum:

Offset Pros Cons
Better liquidity: have access to funds straight away. Redraw may be delayed (depends on provider, eg UBank has a 3 business day wait) Can be more expensive (either higher interest rate or extra fee). But can be negotiated with no extra cost
Better security: provider can remove redraw, but can’t touch money in offset account. Offset is real money, whilst redraw is available credit
Simpler tax for Investment Property (IP): redraw spent on personal expenses are not tax deductible, and messy for accounting

Conclusion

For IP, I think preference is for offset.

Comparison rate

What? A comparison rate is a rate that helps you work out the true cost of a loan. It reduces to a single percentage figure the interest rate plus most fees and charges relating to a loan.

Example

Loan Interest rate % Fees & charges % Comparison rate %
Home loan A 8 0.5 8.5
Home loan B 8.25 0.1 8.35

Conclusion

The lower the comparison rate, the better. In eg above, Home loan B is better & cost less than home loan A, even though A has lower interest.

Home loan

20 Jan 2019

No Lender Loan Rate %pa (LVR 80%) Comparison rate %pa Offset Comments
1 Well home loans Well balanced 3.49 (borrowing > 200k) 3.53 Y Unlimited extra repayments?, redraw facility, offset with debit card, $250 application fee, $10 / month for offset account, $350 legal fee, $250 settlement fee, $300 discharge fee
2 Tic Toc (financed by Bendigo & Adelaide bank) Live in variable 3.57 3.58 or 3.7 (offset) Y Unlimited extra repayments, redraw facility, no ongoing annual / monthly fees, offset account $10 / month
3 UBank (belongs to NAB) UHomeLoan 3.59 (borrowing > 200k) 3.59 N Unlimited extra repayments, redraw facility (anytime, no fees, min $100, redraw by 11am EST, funds transferred by 3 business days), no ongoing annual / monthly fees
4 HSBC Home value 3.59 (borrowing > 150k) 3.61 N Unlimited extra repayments, redraw facility, $600 establishment fee, $150 settlement fee, $300 variation fee, no ongoing monthly
HSBC Variable rate 5.33 (borrowing > 50k) 5.39 Y Unlimited extra repayments, offset account, $600 establishment fee, $150 settlement fee, $300 variation fee, no ongoing monthly
5 Mortgage House Lifestyle first refinancer special 3.59 (borrowing > 150k) 3.62 Y Unlimited extra repayments, offset account, establishment fee $495, no ongoing monthly / yearly fee, valuation fee $300, settlement fee $250, discharge fee $450
6 SCU My life variable 3.59 (borrowing > 150k) 3.63 Y Unlimited extra repayments, offset account, establishment fee $495, no ongoing monthly / yearly fee
7 Yellow Brick Road Rate smasher 3.64 3.64 N Unlimited extra repayments, no ongoing monthly / yearly fee
Yellow Brick Road Empower 3.75 4 Y Unlimited extra repayments, no ongoing monthly / yearly fee
8  loans.com.au Essentials 3.64 3.66 N Unlimited extra repayments, no ongoing monthly / yearly fee
loans.com.au Offset 3.72 3.74 Y Unlimited extra repayments, offset account, no ongoing monthly / yearly fee
9 Heritage bank Discount variable 3.67 (borrowing > 150k) 3.72 Y Unlimited extra repayments, offset account, no ongoing monthly / yearly fee, application fee $600, valuation fee $330
9 ING Mortgage simplifier 3.73 (borrowing > 150k) 3.76 N Unlimited extra repayments, redraw facility, $299 settlement fee, valuation fee (ING cover $225), no ongoing monthly / yearly fee, everyday round up
ING Orange advantage 3.78 (borrowing > 150k) 4.1 Y Unlimited extra repayments, 100% interest offset, no monthly fee, $299 settlement fee ($299 annual fee on anniversary of settlement), valuation fee (ING cover $225),  everyday round up
10 Beyond Bank Special low variable 3.79 (borrowing > 150k) 3.79 Y Unlimited extra repayments?, offset account, no ongoing monthly / yearly fee
11 CUA Achieve variable 3.75 (borrowing > 100k) 3.8 Y Unlimited extra repayments, offset account up to 15k, no ongoing monthly / yearly fee, establishment fee $600, security admin fee $195
11 CBA Extra 3.79 (LVR 70%, borrowing > 10k) 3.8 N Unlimited extra repayments?, redraw facility, no ongoing monthly / yearly fee
CBA Standard variable 4.87 (with wealth package, borrowing > 150k) 5.27 Y Unlimited extra repayment, interest offset, no ongoing monthly / yearly fee
12 ANZ Simplicity PLUS 3.81 (borrowing > 50k) 3.85 N Unlimited extra repayments, redraw facility (no min amount, on business day usually in ANZ transaction account same day), no ongoing monthly / yearly fee
ANZ Standard variable 4.56 (borrowing 250k – 499k) 4.95 Y Unlimited extra repayments, redraw facility, offset account, $395 annual fee (breakfree package: discount rate, fee free except breakfree fee)
13 NAB Base variable rate 3.87 3.91   Discounted rate, unlimited extra repayments, redraw facility, $600 application fee, no ongoing monthly fee
NAB Choice package 4.39 (borrowing 250k – 749k) 4.78 Unlimited extra repayments?, redraw / offset?, $395 annual package fee, no ongoing monthly fee
14 Westpac Flexible variable 3.98 3.99 N Unlimited extra repayments, redraw facility ($25 redraw fee), no ongoing monthly fee
Westpac Variable with offset 4.58 (borrowing 250k – 499k) 4.96 Y Unlimited extra repayments, offset account, redraw facility, $395 annual package fee, no ongoing monthly fee

 Investment loan

No Lender Loan Credit rating Rate %pa (LVR 80%) Comparison rate %pa Offset
1 Mortgage House Advantage investor 3.89 3.92
2 Tic Toc (financed by Bendigo & Adelaide bank) Investment variable 3.91 3.92 or 4.04 (offset) Y
3 loan.com.au Smart Loan 3.97 3.99
loan.com.au Essentials 4.29 4.31
loan.com.au Offset 4.37 4.39 Y
4 UBank (belongs to NAB) UHomeLoan 3.99 3.99 N
5 Yellow Brick Road Empower 3.99 3.99
6 CBA Extra  S&P AA-, Moody’s  Aa3, Fitch AA- 4.09 (borrowing > 10k?) 4.1
CBA Standard variable 5.45 (with wealth package, borrowing > 150k) 5.84
7 CUA Achieve variable 4.08 4.13
8 Beyond Bank Investment loan 4.15 4.54
8 Heritage Bank 4.19 4.56
9 ING Mortgage simplifier S&P A-, Moody’s Baa1, Fitch A+ 4.29 (borrowing > 150k) 4.31 N
ING Orange advantage   4.24 (borrowing > 150k) 4.55 Y
10 IMB Essentials home 4.42 4.48
11 ANZ Simplicity PLUS  S&P AA-, Moody’s Aa3, Fitch AA- 4.46 (borrowing > 50k) 4.5 N
ANZ Standard variable 5.16 (borrowing 250 – 499k) 5.54 Y
12 Westpac Flexi first investment  S&P AA-, Moody’s Aa3, Fitch AA-  4.48 4.49
Westpac Variable with offset 5.13 (borrowing 250k – 499k) 5.5
13 NAB Base variable rate  S&P AA-, Moody’s Aa3, Fitch AA- 4.65 4.69
NAB Choice package 4.95 (borrowing 250k – 749k) 5.33
14 SCU Propack investment 4.65 4.7
15 Adelaide bank Smartsaver S&P BBB+, Moody’s A3, Fitch A- 4.86 4.9
16 HSBC Home value  S&P A, Moody’s A2, Fitch AA-  5.34 5.40
HSBC Variable rate 5.95 6.02