PROPERTY

Cheapest Basic Home Loan: Best of the Best 2020

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GOLD WINNERS: 
MOVE BANK (BANK)
HSBC (MAJOR BANK)
FREEDOM LEND (NON-BANK)

With many mortgage rates below 3%, borrowers have never had it so good

Home loan interest rates are the lowest since the 1950s and, as our winners show, it's now possible to land a home loan rate that starts with a "2"
- something that was unthinkable not so long ago.

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That said, UBank's latest Know Your Numbers Index shows one in three homeowners are clueless about their home loan rate. It's a good reason to check what you're currently paying to see if you could get a better deal elsewhere.

The non-banks, many of which operate 100% online, have nailed super-cheap home loans. Freedom Lend's 2.79% Owner Occupied Special Variable loan is available if you have a deposit of at least 20%. Freedom Lend does accept a minimum 5% deposit, but the rate rises to 3.29%. Its loan is available if you're buying or refinancing.

Close behind is Well Home Loans with its Well Balanced loan. You'll need a 20% deposit and the minimum amount is $200,000. For an extra $10 a month you get 100% offset .

Highlighting the competitive strength of non-banks in the home loan space, third placegetter Mortgage House has a rate that compares favourably with the frontrunners among the banks.

Borrowers will need a minimum 20% deposit; however, the Mortgage House home loan offers a relocation feature that lets you purchase your next home before you've sold your current property.

The loan is also fully portable, meaning you can take it with you if you upgrade to a new home, which can be a real cost saver.

MOVE Bank, which took out this award last year, packs real value into its Straightforward loan. Take advantage of free-to-settlement property insurance, zero transaction fees on MOVE savings and transaction accounts and a loan term of up to 30 years. To score the lowest rate you will need a 20% deposit.

Like a lot of the banks, HSBC throws in a few perks for borrowers taking out its Home Value Loan - they include a complimentary Feng Shui report on your property. Also up for grabs is a 3.02% promotional rate available on loans of $50,000 or more if you apply by December 31, 2019.

The maximum lend is 90% of the property's value and the loan is fully portable. The loan allows unlimited redraws, and repayments can be made weekly, fortnightly or monthly to fit your pay cycle.

Money's 2019 and 2018 Bank of the Year, Suncorp, offers a super-low rate even if you have just a 10% deposit. Take out a home loan of $150,000 or more and Suncorp will throw in a discount of up to 20% off your first year's premium on home and/or contents cover.

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