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Home Loans Australia
Home Loans in Australia have a big history. Ten years ago almost anyone could borrow money from majority of mortgage lenders.
Situation was so out of control that even Centerlink payments were considered as an income qualifier.
Banks, mortgage lenders, building societies were racing to offer home loans in Australia to potential clients.
Those days overseas money was cheap and properties were valuable.
Today it is a very different situation. The meltdown of financial markets makes the term - Home Loans Australia - a rather stressful subject.
Property is no longer the hot commodity. In addition, there is very little financial surplus.
The banks survived the economic onslaught. However, many lenders of home loans in Australia perished drawing their clients in excessively high interest rates.
Lenders, who are offering home loans in Australia, perform better than lenders in other countries.
However, getting loans is no longer the half an hour qualifier interview.
Home Loans in Australia - The Lenders
There are many lenders who offer home loans in Australia.
In the past the private home loan lenders were offering low interest rates and good service.
Today banks are generally beating the lending game.
Some home loan brokers still are holding strong (such as Mortgage Shredder) but traditional institutions starting to have the upper hand.
Aussie and Wizard were probably the most notable lenders of home loans in Australia.
Wizard has been sold to Aussie but the lender still operates under the original name.
Surprisingly, banks lead in the game of low interest rates.
Currently Adelaide bank and Commonwealth bank have the lowest interest rates.
Credit Union Australia and National Australia Bank are not far behind the leaders.
Home Loans in Australia with Commonwealth Bank
Commonwealth Bank has a reputation of relatively unobstructive lender of home loans in Australia.
The current interest rate of 6.86% bring Commonwealth Bank in the second place.
Fixed home loan interest rates are also very good:
- 2 year at 7.04%
- 3 year at 7.39%
- 4 year at 7.59%
Since the economic situation is uncertain these days, the fixed home loan rates of Commonwealth may actually bring more customers than the low variable rate.
Commonwealth Bank of Australia offers probably not more than other banks in terms of services.
However, the reputation of simplicity and lower home loan interest rates make this bank a popular home loans institution.
Home Loans in Australia with Commonwealth Bank are competitive but not overwhelming.
Home Loans in Australia with National Australia Bank
National Australia Bank (NAB) is another giant for home loans in Australia.
In some cases the bank is controversial but it is still a very strong lender of home loans in Australia.
Currently at 7.24% variable interest rate, National Australia Bank ranks forth.
There are number of things not directly visible within home loan account which can provide savings if removed:
- monthly account fees
- overdrawn fees on transaction accounts
- over limit fees on credit cards
Although, National Australia Bank was controversial in some activities the customer service is very good. Home loans in Australia definitely benefits with NAB. This home loans lender is a strong competitor but it is also too quick to increase interest rates with Reserve Bank increases.
Home Loans in Australia with Aussie Loans
Aussie Home Loans are services provided by a mortgage broking giant - Aussie. The current variable rate of 7.36% is still competitive.
There are discounts available but be aware of conditions. Generally, home loans in Australia above 350K get lower variable interest rate.
Aussie is not so much valued as the affordable lender of home loans in Australia.
However, flexibility and many types of home loans are key for relatively good success.
Aussie is a smart player within home loans Australia wide. Recently they purchased Wizard - a strong home loan competitor.
Aussie is flexible in business dealings even with their competitors. As a mortgage broker they can offer better home loan advice than general banks.
Home Loans in Australia with Credit Union
Credit Union Australia has recently launched a strong TV campaign.
With the current variable rate of 6.87%, Credit Union Australia places itself among the leaders of home loans in Australia.
Minimum loan is 10K and maximum 10 million. Application fee is standard $600.
There are no on-going fees and both offset and redraw facilities are available.
Early termination fee (as with the other lenders) is only $350.
Credit Union Australia is a solid lender of home loans in Australia. It allows to borrow of up to 97% of property value.
Home Loans in Australia with Adelaide Bank
Currently Adelaide Bank leads the home loan market in Australia with the lowest 6.74%. Minimum loan is $10K.
Application fee of $595 is only $5 less than other Australian home loan institutions.
Ongoing fees are very high - $10. There is no early termination fee. Both offset account and redraw facility are available.