Our Top 5 Variable Rate Refinancing Deals for Spring 2018


September 27, 2018

refinancing-our-top-5-variable-rate-refinancing-deals-for-spring-2018

A lot of homeowners refinance in spring – which means you’ll find lots of attractive variable rate refinancing deals on offer as lenders compete for your business. Whether you want to finally do that renovation project whilst the weather is nice or you want to do a little spring cleaning with your finances, refinances can help you reach your goals.

If you are searching for a great variable rate loan to switch to, take a look at some of the most competitive refinancing deals available this spring.

Why Should I Refinance?

If you are considering refinancing, you probably already know you can save money when you switch to a lower rate. But, there are other ways you can make your new loan work for you.

  • Consolidate your debts and save money by combining all your high-interest debt and paying it off with your lower mortgage rate.
  • Use your equity for a renovation project or to purchase an investment property.
  • Free up your budget with lower repayments from a lower rate.
  • Make it easier to pay down your mortgage faster with loan features like a 100% offset account, flexible repayment options, and free early repayments.

Refinancing to a Variable Rate Loan – Pros and Cons

Variable rate loans tend to have lower starting interest rates than fixed-rate loans, making them an attractive option when you want to refinance and save money with a lower rate. There are other advantages as well, and some drawbacks.

Take a look at the pros and cons of refinancing to a variable rate loan so you have a clear idea of what your experience will be.

Pros of refinancing to a variable rate loan:

  • Some variable rate loans are full-featured, giving you more flexibility to pay down your mortgage faster
  • Basic variable rate loans usually have the lowest rates
  • With a variable rate loan, you can refinance again without having to pay break fees that come with fixed-rate loans
  • When prevailing interest rates go down, your mortgage rate will decrease

Cons of variable rate loans:

  • Your rate and mortgage repayments will fluctuate, making it difficult to budget
  • If prevailing interest rates go up, so will your interest rate

How to Compare Refinancing Deals

When comparing variable rate loans, the right loan and the most competitive refinancing deal will depend on your individual circumstances, what you want out of a loan, and which loan you can qualify for.

  • If you can refinance to a better rate with your current lender, you may be able to save money on waived fees and discounts.
  • Calculate refinancing costs. Different lenders will charge different fees. Make sure you factor these cost differences into your decision-making process.
  • Look at the comparison rate as well as the lowest listed rate. This will help you better contrast one loan product from another.
  • Don’t forget maintenance fees. Some variable rate loans will have no fees whilst others will be high.
  • Make sure the loan you apply for has the features that matter to you. For example, if you want the flexibility of free redraw or early repayments, look for something which offers those features.

Get Your Free Refinancing Report

Calculate your potential savings, lowest interest rate, and receive a free home loan consultation.

Top 5 Variable Rate Refinancing Loans from Our Panel

When searching for the most competitive refinancing deal, you want to have an idea of what’s available. Of all the lenders on our panel, here are the top five variable rate refinancing loans as of 27th September 2018.

All of these loans are the top deals, taking into account the following criteria:

  • Rates – as of 27th September 2018
  • Minimum and maximum loan amounts vary for each product
  • Loan amount – $400,000
  • Property value – $500,000
  • Loan term – 30-years
  • Repayment type – principal and interest
  • Borrower type – Refinancer
  • Loan purpose – Owner Occupied
  • Repayment frequency – monthly
  • Interest rate type – Variable
  • Based on – full documentation but may include construction and line of credit loans

Teacher’s Mutual Bank – Classic Home Loan

With a low 3.65% variable rate, no maintenance fees, and a free redraw facility, Teacher’s Mutual Bank’s Classic Home Loan is a great option if you want to save with a competitive rate. You can borrow up to 85% LVR.

Your monthly repayment would be $1,829.

Teachers Mutual Bank
Features
Interest Rate 3.65%
Comparison Rate 3.70%
Offset Account No
Offset Cost $0
Redraw Facility Yes
Redraw Cost $0
Minimum Loan Amount $150,000
Maximum Loan Amount $1,000,000
LVR 85%
Annual Fee $0
Monthly Fee $0
Application Fee $600
Monthly Repayment $1,829

 

Homeloans.com.au Ultra Plus

Save with a great rate and no application fee or loan maintenance fees. You can borrow up to 80% LVR. The Ultra Plus loan features a 3.67% variable rate and the financial flexibility of a free redraw facility.

Your monthly repayment would be $1,834.

Teachers Mutual Bank
Features
Interest Rate 3.67%
Comparison Rate 3.83%
Offset Account No
Offset Cost $0
Redraw Facility Yes
Redraw Cost $0
Minimum Loan Amount $200,000
Maximum Loan Amount $2,000,000
LVR 80%
Annual Fee $0
Monthly Fee $0
Application Fee $0
Monthly Repayment $1,834

 

Suncorp Bank – Back to Basics

An attractive option if you are refinancing with limited equity, Back to Basics comes with a free redraw facility and zero monthly fees. Suncorp Bank is also waiving the application fee. Borrow up to 90% LVR. The variable rate is 3.68%.

Your monthly repayments would be $1,836.

Suncorp Bank
Features
Interest Rate 3.79%
Comparison Rate 3.80%
Offset Account No
Offset Cost $0
Redraw Facility Yes
Redraw Cost $0
Minimum Loan Amount $150,000
Maximum Loan Amount $5,000,000
LVR 90%
Annual Fee $0
Monthly Fee $0
Application Fee $0
Monthly Repayment $1,861

 

NAB – Base Variable Special Offer

NAB’s Base Variable Special Offer is a solid loan for borrowers who want to refinance to a low variable rate mortgage. The interest rate is 3.69%. You’ll get the flexibility of free redraw and you can borrow up to 95% LVR. This loan comes with a $600 application fee.

Your monthly repayments would be $1,838.

NAB
Features
Interest Rate 3.69%
Comparison Rate 3.73%
Offset Account No
Offset Cost $0
Redraw Facility Yes
Redraw Cost $0
Minimum Loan Amount $150,000
Maximum Loan Amount $5,000,000
LVR 95%
Annual Fee $0
Monthly Fee $0
Application Fee $600
Monthly Repayment $1,838

 

Bankwest – Complete Variable Home Loan

Refinance to a full-featured variable rate loan with a competitive rate. The Complete Variable Home Loan comes with free redraw and a free offset account. Borrow up to 80% LVR at a 3.70% variable rate. There is an annual maintenance fee of $395 but Bankwest has waived the application fee.

Bankwest
Features
Interest Rate 3.70%
Comparison Rate 4.13%
Offset Account Yes
Offset Cost $0
Redraw Facility Yes
Redraw Cost $0
Minimum Loan Amount $200,000
Maximum Loan Amount $2,000,000
LVR 80%
Annual Fee $395
Monthly Fee $0
Application Fee $0
Monthly Repayment $1,841

 

Keep in mind, interest rates change and the rate you get will depend on the details of your application. With plenty of competitive home loan products on the market right now, spring 2018 is ripe with opportunities for switching to a loan with an affordable rate.

Things you should know:

This information does not constitute as financial advice. Terms and conditions, fees and charges and normal lending criteria apply. Information & interest rate is current as at 27th September 2018 & is subject to change. The comparison rate is based on a loan amount of $150,000 over a loan term of 25 years. WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.


Written by Refinancing.com.au

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