Interest rates are rising and you might be concerned with the rate of your mortgage repayments. The interest rate hikes may have you wondering if there’s a better option available that will help you save money. We’ve compared available home loans in Australia and listed the top ten here so you have more money in your pocket. We compared lenders on a $400,000 loan with a 20% deposit over 25 years. 

Yard Home Loans

Yard Home Loans charges a variable interest rate of 1.99% on an owner-occupier loan. In the Your repayments would be $1,693 per month. The total interest charged over the term of the mortgage would be $108,041 bringing the total principal and interest paid to $508,041.

UBank Neat Variable Home Loan

The Neat Variable Home Loan has an interest rate of 2.09% if you have a 20% deposit. Your monthly repayments will be $1,713 and the total interest over the lifetime of the home loan would be $113,899 bringing your total payments to $513,899.

Well Home Loans

Well Home Loans variable interest rate is 2.10%. If you chose a 25 year mortgage with principal and interest repayments your monthly repayments would be $1,715 on a $400,000 loan. The total interest over the 25 years would be $114,488 and your overall repayments would be $514,488. charge a variable interest rate of 2.14% for owner-occupier homes. Over 25 years your total repayments including principal and interest would be $516,844 which includes interest of $116,844. The monthly repayment would be $1,723. Smart Booster Discount Variable

The Smart Booster Discount Variable Mortgage has an discount variable rate of 2.24%. Your monthly repayments would be $1,742.54. Over the lifetime of the mortgage you would pay $122,763 interest, with total repayments of $522,763.

Nano Digital Home Loans

Nano Digital Home Loans also has a variable and comparison rate of 2.24%. The monthly repayments would be $1,742.54 and over the lifetime of the mortgage you would pay $122,763 with total repayments of $522,763.

ING Mortgage Simplifier

ING’s Mortgage Simplifier variable rate is 2.34%. Based on a $400,000 loan your overall loan over 25 years would be $528,722, which includes interest of $128,722. The total monthly repayments would be $1,763 over a 25-year term where you pay principal and interest. 

St George Bank Basic Home Loan

St George also charges 2.34% on their Basic Home Loan with no establishment fees and $4,000 cashback. The monthly repayments on a $400,000 loan would be $1,763 if you chose a 25-year term. The interest overall is $128,722 and your total repayments would be $528,722.

Newcastle Permanent

Newcastle Permanent’s variable interest rate currently sits at 2.37%. Over 25 years you would pay interest of $130,518, with a monthly repayment of $1,769. The total mortgage repayments would be $530,518.

Commonwealth Bank Extra Home Loan

Commonwealth Bank’s Extra Home Loan offers an interest rate of 2.54%. If you selected a 25-year term you would pay $1,803 monthly which would include principal and interest. The total interest would be $140,761 over the lifetime of the loan and your total repayments including principal would be $540,761.

The Verdict

When it comes to home loans it pays to shop around and to save as much for the deposit as you possibly can. A higher deposit will reduce your interest rate. Shopping around rather than just sticking to the big four banks could save you significant money. If you chose Yard Home Loans over Commonwealth Bank you would save $32,720, which depending on where you live, is enough for a deposit on an investment property.

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