Lowest Interest Rate Home Loan + Gov Guarantee Offset

LBenjamin Dobell on 08/10/2019 - 00:46
Last edited 08/10/2019 - 00:47

There's a lot of talk of Athena, UBank, Homestar and FreedomLend; however I believe only UBank are Government backed and they don't offer offset accounts. So they're all instantly crossed off the list.

Assuming a <= 80 LVR owner occupier loan, which lender presently offers the best rate assuming the following NON-NEGOTIABLES?:

  • 100% Offset Account
  • Covered by the Government Deposit Guarantee Scheme (https://www.guaranteescheme.gov.au/qa/deposits.html)
  • History (particularly recent history) of passing on interest rate drops to existing customers. Yes, I know that's not a future guarantee.

Nice-to-haves:

  • No on-going fees
  • No exit fees (or whatever garbage they're calling them now i.e. "Discharge fees")
  • Minimal application fees

I'm well aware that these three requirements mean I'm exceedingly unlikely to see the sorts of rates Homestar are offering, I'm specifically after the best deal with those non-negotiable constraints.

Financial Home Loan

Comments

  • p1 ama on 08/10/2019 - 02:06
    +1

    You can probably get 3% from one of the four major banks if you negotiate. Won't be as low as the 2.8% or so rates from the likes of Athena, but it'll have the security that you're looking for.

    I wouldn't worry too much about rate drops, predicting interest rates is a fool's game but it's not like rates can actually drop much more.

  • dasher86 on 08/10/2019 - 11:04

    Welcome to OzMortgage Brokers.
    Please give me all your financial details and we will look into this for you.

  • Benjamin Dobell on 09/10/2019 - 12:37

    Not quite getting any solid responses thus far.

    If it really is a matter of going to the big four, is anyone willing to chime in with the rate they're getting from a big four lender? I'm already with one of the big four, my current rate isn't terrible, but it's certainly not good!

    EDIT: If I'm expecting transparency from others, I probably ought to do the same! Currently with CBA at 3.68%. This was setup a few years back prior to reaching <= 80 LVR; definitely have some more bargaining power at my disposal now.

    • p1 ama on 10/10/2019 - 14:00

      Westpac tends to be the most competitive of the major 4 with regards to home loan rates, CBA tends to be the least competitive. You're paying too much, you could probably get around 3.3% with CBA, probably around 3.1 - 3.2% with Westpac without too much work. Might be worth going between the two and seeing what you can do.

  • clover on 09/10/2019 - 12:58

    Bank of Sydney got most of the above (except for the discharge fees which I think is not waived by any of the banks)
    Current rate is 2.96% for new customers.

    They still have the refer a friend offer 250aud which helps offset the discharge fees.
    https://www.banksyd.com.au/special-offers.html

    With them for more than a year now

    Historic rate cut so far: 0.25 in June, 0.20 in July, 0.15 in Oct.

  • dasher86 on 09/10/2019 - 13:46
    +2

    Looks like TicToc have offset at 2.98

    • clover on 09/10/2019 - 18:09

      I don't think tic toc is an ADI hence no government guarantee.

      The 2.96% from BOS was only announced yesterday hence not effective until late October.

      I found them easy to negotiate with if you have strong financial position.Last time I managed to get 500 instead of 250 as they advertised.

    • OldBugger on 09/10/2019 - 20:10

      I would say tictoc fits your bill too, OP. It ticks all your boxes but does have a discharge fee and also charges for offset.

      I looked into the government guarantee before I went with them and every source stated that they are backed by it. Essentially your finances are held with Adelaide bank.

      They just lowered my rate again and will now be on 2.84%

  • His_Holiness on 10/10/2019 - 14:23

    Macquarie 3.09%. A broker may be able to get the annual fee waived like this ozbargainer

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