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Best of the Best 2017: Cheapest Home Loans


Interest rates are the lowest in memory, leaving home buyers well placed to scoop a great deal. As our winners show, if you’re paying more than 4% on your home loan you’re being ripped off.

In the non-bank category, Queensland-based Reduce Home Loans has picked up the top award for cheapest home loan the second year in a row. The Rate Buster permits unlimited extra repayments and redraw, and borrowers who maintain a good repayment record may be eligible for a discount after five years. You will need a 20% deposit.

If that’s a challenge, our second placegetter, Reduce’s Rate Buster 100% Offset loan, could be the solution.

The maximum lend is 90% of your property’s value, though a loading of 0.25% applies for borrowings between 80% and 90%. Still the Rate Buster 100% Offset loan remains a low-cost option for home buyers with a 10% deposit.


Among the banks, UBank, NAB’s online lender, maintains its track record for red-hot deals, having taken out this award for five consecutive years.

Along with a low rate, borrowers enjoy the flexibility of unlimited extra repayments plus redraw ($1000 minimum each time), and a 0.10%pa loyalty discount may be applied if you keep up a healthy repayment record for three consecutive years.

Choose weekly, fortnightly or monthly repayments, and if you can’t decide between a fixed or variable rate, there’s a split loan option. Borrowers need to be PAYG employees and have a minimum deposit of 80% to apply for the UBank loan.

Read more from Best of the Best or grab the December issue of Money for full coverage.


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    • Hi LKLad,

      Our methodology also takes into account historical rates. It is unfortunate that Reduce Home Loans have increased their rates, but many lenders have done the same.

      – Money team

  1. Does your bank deal with ex bankrupt customers? We finalised bankruptcy in August 2016.
    Looking for a loan of $360,000. Deposit of 20 per cent.

    • Hi Renate and Ian,

      Please contact the lenders directly to ask about your loan eligibility. You can phone UBank on 13 30 80 or Reduce Home Loans on 1300 733 823 .

      – Money team

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