As the home loan market continues to shift in response to economic conditions, it’s more important than ever for borrowers to stay informed about the best options available. Whether you’re a first-time homebuyer or looking to refinance an existing loan, finding the right mortgage deal can save you thousands of dollars in interest over the life of your loan.

Fixed-rate home loans provide certainty by locking in your interest rate for a set period, giving you peace of mind amidst rate fluctuations. On the other hand, variable-rate home loans offer flexibility, with the potential for lower rates in the future, but with the risk of rates rising.

In this article, we’ll explore the top fixed and variable rate deals for September 2024, comparing interest rates, key features, and potential drawbacks to help you make the best decision for your financial situation. Plus, we’ll show you how Vantage Financial can assist in securing the best loan terms available, so you can feel confident in your home loan choice.

Top Fixed Rate Deals (September 2024)

Macquarie Basic Fixed Home Loan

• Interest Rate: 5.59% p.a. (3-year fixed rate)
• Comparison Rate: 6.01% p.a.
• Loan to Value Ratio (LVR): Up to 70%
• Key Features:
  • No Application Fees: Save on upfront costs, with no annual or monthly service fees.
  • Flexible Fixed Terms: Macquarie offers fixed terms ranging from 1 to 5 years. The 3-year fixed term provides one of the most competitive rates on the market.
  • Extra Repayments: You can make up to $10,000 in extra repayments each year, allowing borrowers to pay off their mortgage faster without penalty.
  • Redraw Facility: If you’ve made extra repayments, you can access these funds through Macquarie’s redraw facility.
  • Market-Leading Application Process: Known for quick approvals, Macquarie’s home loan process is 100% digital, offering a streamlined, paperless application and fast turnaround times.
  • Splitting Your Loan: Borrowers can split their loan between fixed and variable rate portions, offering flexibility for those looking to manage rate fluctuations.
  • Potential Drawbacks:
    • There’s no offset account available with the Basic Fixed Home Loan.
    • If you exit the loan early, break fees can apply, which can be substantial depending on how far into your fixed term you are.

This loan is ideal for borrowers looking for low rates without the hassle of ongoing fees, especially for those who have a high LVR and want to lock in stability.

Bendigo Bank Express Fixed Home Loan

• Interest Rate: 6.01% p.a. (2-year fixed rate)
• Comparison Rate: 6.14% p.a.
• Loan to Value Ratio (LVR): Up to 90%
• Key Features:
  • Offset Account: Unlike many fixed-rate loans, Bendigo’s Express Home Loan offers a full 100% offset account, enabling borrowers to reduce the interest they pay on their home loan balance.
  • Redraw Facility: Borrowers can redraw on any extra repayments made, providing liquidity for unexpected expenses.
  • Free Extra Repayments: You can make additional repayments of up to 20% of your loan amount during the fixed period without incurring fees.
  • Loan Amount: You can borrow up to $10 million, making this loan suitable for a wide range of borrower needs.
  • Deposit Requirement: A minimum of 10% deposit is required, making it accessible to a larger pool of borrowers.
  • Flexibility in Loan Terms: Choose fixed rate terms ranging from 1 to 5 years.
  • Fees: While the loan offers great flexibility, borrowers need to be mindful of the $10 monthly service fee and a $134 electronic valuation fee.
  • Potential Drawbacks: Break costs apply if you exit the loan early, which can be costly depending on how far into the fixed term you are.

This loan is excellent for borrowers looking for flexible repayment features like offset and redraw facilities while still benefiting from the certainty of fixed rates.

Top Variable Rate Deals (September 2024)

Unloan – Variable Home Loan (by CommBank)

• Interest Rate: 5.99% p.a.
• Comparison Rate: 5.90% p.a.
• Loan to Value Ratio (LVR): Minimum 20% deposit required
• Key Features:
  • No Upfront or Ongoing Fees: Unloan offers a fee-free experience, saving you money over the life of the loan.
  • Loyalty Discount: A unique feature of Unloan is its loyalty discount, where your rate decreases by 1 basis point each year for up to 30 years.
  • Free Extra Repayments and Redraw: You can make extra repayments without penalty and redraw any additional payments if needed.
  • Loan Amount: Borrowers can take out loans of up to $10 million, providing flexibility for larger purchases or refinancing needs.
  • Backed by CommBank: While Unloan operates as an online-only lender, it’s backed by Commonwealth Bank, giving borrowers the comfort of banking with one of Australia’s largest financial institutions.
  • Digital-Only Experience: Borrowers should be comfortable with a fully online loan application and servicing experience.
  • Potential Drawbacks: This product is only available for owner-occupiers, and no offset account is available. Furthermore, borrowers need at least a 20% deposit to qualify.

Unloan is perfect for borrowers looking for a low-cost, no-fee loan backed by the security of a major bank, along with the added bonus of a loyalty rate discount.

UBank – Neat Home Loan

• Interest Rate: 6.09% p.a.
• Comparison Rate: 6.11% p.a.
• Loan to Value Ratio (LVR): Minimum 40% deposit
• Key Features:
  • No Application or Ongoing Fees: Like Unloan, UBank is light on fees, making it attractive for cost-conscious borrowers.
  • Free Extra Repayments: Pay off your loan faster by making additional payments without penalty.
  • Redraw Facility: You can access any extra repayments through UBank’s redraw facility.
  • Fast, Paperless Application: UBank offers an entirely digital application process with quick approvals.
  • NAB Backed: UBank is a subsidiary of NAB, offering borrowers the peace of mind that comes from borrowing with one of Australia’s largest banks.
  • Potential Drawbacks: UBank’s best rates are reserved for borrowers with a 40% deposit or higher, which can be a hurdle for many first-time buyers. It also doesn’t offer an offset account.

UBank’s Neat Home Loan is ideal for borrowers looking for a streamlined online process, low rates, and minimal fees, especially those with higher deposits.

Macquarie – Offset Home Loan

• Interest Rate: 6.14% p.a.
• Comparison Rate: 6.39% p.a.
• Loan to Value Ratio (LVR): Minimum 40% deposit
• Key Features:
  • 100% Offset Account: Borrowers can benefit from up to 10 offset accounts per loan, allowing them to reduce the interest payable on their loan balance.
  • Redraw Facility and Extra Repayments: Make unlimited free extra repayments and access funds via redraw if needed.
  • Split Loan Option: Macquarie allows borrowers to split their loan between fixed and variable rates for better financial management.
  • No Application Fees: While Macquarie charges a $248 annual package fee, there are no upfront application fees.
  • Repayment Holidays: This feature allows borrowers to take a break from repayments if life’s circumstances change, such as during maternity leave or job transitions.
  • Potential Drawbacks: The $248 annual fee and minimum 40% deposit requirement make this loan less accessible for lower-deposit borrowers.

Macquarie’s Offset Home Loan is packed with features like multiple offset accounts, making it a great option for savvy borrowers looking to maximize savings while having repayment flexibility.

HSBC – Home Value Loan

• Interest Rate: 6.14% p.a. (variable rate)
• Comparison Rate: 6.14% p.a.
• Loan to Value Ratio (LVR): 70-80% LVR
• Key Features:
  • No Ongoing Monthly Service Fees: HSBC waives monthly service fees, making the loan cost-effective for long-term borrowers.
  • Free Extra Repayments: Borrowers can make unlimited additional repayments, helping them pay off their loan faster.
  • Redraw Facility: If you’ve made extra repayments, you can access those funds through the redraw facility.
  • Settlement Fee Waiver: As part of a promotional offer, the settlement fee is waived, reducing upfront costs for borrowers (terms and conditions apply).
  • Split Loan Option: Allows you to split your loan between fixed and variable portions, offering flexibility in managing interest rate risks.
  • Dedicated Relationship Manager: HSBC assigns a personal relationship manager to guide you through the application process, offering a more personalized customer experience.
  • Loan Flexibility: You can borrow up to $10 million, making it suitable for larger loans or high-value properties.
  • Potential Drawbacks: There is a $300 variation fee if you make changes to your loan. It also does not offer the lowest variable rate on the market.

The HSBC Home Value Loan is well-suited for borrowers looking for a flexible loan with competitive features, such as extra repayments and redraw, without the burden of ongoing monthly fees. The dedicated relationship manager also provides added support throughout the process.

These are some of the most competitive fixed and variable rate home loans currently on the market. Depending on your needs—whether it’s low fees, offset accounts, or the ability to make extra repayments—there are great options to consider in both categories. Always compare rates and features, and make sure the loan you choose fits your financial situation.

Why You Should Consider Switching

By refinancing to a lower-rate mortgage, you could significantly reduce your interest payments and free up extra cash in your budget. Whether you opt for the flexibility of a variable rate or the certainty of a fixed rate, there are plenty of attractive options available in the current market.

Talk to Vantage Financial to Secure the Best Rate

At Vantage Financial, we specialize in helping borrowers navigate the complexities of the home loan market. Whether you’re looking for a fixed or variable rate, we can guide you toward the best possible rates and features that align with your financial goals.

Our team of experts works with top lenders to secure competitive rates and ensure you get the loan that fits your needs. Contact us today at 1800 595 500 or visit vantagefinancial.com.au to start your journey to a better home loan.