We know finding the best value home loan can be a hard slog. That’s why thousands of Aussies turn to mortgage brokers to help them understand the fine print, particularly if you’re a first time buyer who needs help preparing paperwork or require advice for complicated financial circ*mstances (hello post-2020).
However, if you’re investigating home loans in 2021 it’s important to know there are some things brokers might keep to themselves to make their services more attractive. As you look into getting a mortgage, don’t forget these 3 factors:
1. Mortgage brokers don't always offer you the best deal
Some popular low-cost Aussie lenders like loans.com.au, UBank and Athena take mortgage brokers out of the equation and only deal directly with borrowers. Since they don’t offer commissions to brokers, great value home loans from these lenders can’t be compared through a brokerage service and therefore won’t be offered to you, the customer.
2. Brokers make money on home loan sales for years via trail commissions
Currently, lenders pay a commission to brokers when they sign a borrower up to a home loan. They’re generally paid both an upfront and a ‘trail’ commission, which means they continue to earn an income while you pay down your loan, so long as you stick with the lender they referred you to.
3. You can do the home loan legwork yourself
In this brave new digital world, financial comparison sites make it simple to compare home loan features, fees and interest rates from a wide range of banks and non-bank lenders. By doing your own online research, you can compare the major players beside smaller low-cost lenders so you don’t miss out on finding your ideal home loan.
So if you’d like to see what sort of deals you can access by comparing and applying online yourself, here are five killer home loans you won’t find by going through a mortgage broker....
5 Top Home Loans You Won’t Find Through a Broker
UBank UHomeLoan
- 2.49% fixed rate for 3 years (2.29% comparison rate*)
- Free extra repayments up to $20,000 p.a.
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This stellar new fixed rate from online bank UBank is currently the lowest in the Mozo database, offering borrowers peace of mind over their mortgage repayments for 3 years. There are no ongoing fees and borrowers can make free extra repayments up to $20,000 a year during the fixed term. UBank is backed by NAB and has home loan experts on tap to help you through the online application process.
Where do I get it?Head over toUBankto find out more >>
loans.com.au Smart Booster Home Loan
- Ultra low 1.85% variable rate for the first two year
- Rolls over to low ongoing 2.25% (2.21% comparison rate*)
- Optional offset account plus free redraws and extra repayment
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This killer home loan from popular online lender, loans.com.au, could save you thousands. By cutting out branches and brokers, loans.com.au is able to pass on savings to customers in the form of lower rates and fees. Flexible features include unlimited free extra repayments and redraw, multiple loan split options and an optional offset account for 0.10%. What's more, there are no ongoing monthly or annual fees.Available to borrowers with a 20% deposit for loans of up to $1 million.
Where do I get it? Head over to loans.com.au to find out more >>
Athena Celebrate Variable Home Loan
- 1.99% variable & comparison rate* for borrowers with 60% LVR
- Fast online application with no fees, free extra repayments + free redraw
- Best Low Cost Home Loan - Mozo Experts Choice Awards 2021^
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Online mortgage challenger Athena is taking on the banks with a customer first approach and some of the best value mortgages on the market, helping borrowers around the country to save money and pay off their mortgages faster. Plus, to reward borrowers for paying down their home loan, Athena will now automatically lower your rate as you pay down your loan. Available to refinancers and home buyers buying an established property in a capital or major regional city with a 60% LVR.
Where do I get it?Head over to Athena to find out more >>
Well Home Loans Well Balanced
- 1.85% variable rate (1.88% comparison rate*)
- Free extra repayments and redraw facility
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As one of the cheapest home loans in the market thanks to a new ultra-low variable rate, you can find your inner balance with the Well Balanced home loan from Well Home Loans. Winner of a Mozo Experts Choice Award 2021 for Best Low Cost Home Loan, this loan boasts a list of waived fees and charges to help you save even more money. You’ll also get free extra repayments, redraw and an optional offset account for $10 a month, so you can customise your loan to suit you.
Where do I get it? Head over to Well Home Loans to find out more >>
Yard Variable Home Loan Special
- Great variable rates starting at 1.99% (2.02% p.a. comparison rate*)
- The choice between extra repayments & redraws or an offset account
- 2021 Mozo Experts Choice Award winner^
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You don’t often see an offset account available on such low-cost loans, but Yard is really thinking outside the box to make buying a home more affordable. Offset accounts let you store your savings against the loan to reduce the amount of interest payable. This feature will cost you $10 a month with Yard, but could save you thousands if you’ve got a solid savings fund. Couple this with the 1.99% rate (2.02% comparison rate*) for borrowers with an LVR below 70% and you’ve got a winner.
Looking to compare more home loans? Find the latest deals, discounts and interest rates from more than 80 lenders at Mozo's home loan comparison page.
^See information about theMozo Experts Choice Home loans Awards
*WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
*WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
**Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circ*mstances and interest rate changes.
^See information about the Mozo Experts Choice Home Loan Awards
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While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.
