Eight no-frills home loans that could save you…

Do you just want a cheap home loan? Without any fancy features, options, add-ons or ‘package deals?’

If you aren’t interested in a packaged up deal including credit card, insurance, redraw, offset account or ‘personal face-to-face service’ then you could save thousands of dollars by choosing a cheap loan deal that is just that – a loan and nothing much else.

If you are prepared to take out a loan from a lender that doesn’t provide branches in every town and suburb, you will pay less. You may have to find a lender that is not a household name, that doesn’t have a brand name that is known by all Australians. That’s because all that branding and advertising costs money, which ultimately is paid for by customers. So if you are prepared to look around, compare deals and go with a smaller lender that spends little or no money on paid advertising, you can save big dollars.

And right now there are some amazing no-frills home loans available with the cheapest interest rates ever seen in Australia. Infochoice lists about 100 home loans with headline variable rates under 4.0 per cent. Most of these are just good, basic, straight forward home loans with no extras, no bells and whistles, just a super-low interest rate and super low fees.

Some of these so-called no-frills home loans are cheap loans that do also have features included like redraw and offset. So you might not have to give up all your features for a cheap loan.

You can check on the features offered by all home loans listed in the Infochoice database by clicking on the “Features” tab at the top left hand side of the Infochoice Home Loan comparison table.

To help get you started on your search for a no-frills home loan, here are eight loans listed by Infochoice that prioritise a cheap interest rate over fancy add-ons:

Mortgage House’s Pure & Simple Summer has an amazing low variable comparison rate of just 3.44 per cent and it does offer redraw and portability, but not offset.

Beyond Bank special low rate home loan has a low comparison rate of 3.74 per cent and it offers redraw and offset.

UBank Discount offer has a comparison and variable rate of 3.74 per cent. This loan for borrowers with 20 per cent equity does not offer an offset account however does allow you to redraw.

Mortgage House's Advantage Home Loan has a comparison rate of 3.79 per cent AND it does offer an offset account and redraw.

ING Direct Bank Orange Advantage for loan to valuation ratios of 80 per cent or less has a comparison interest rate of 4.00 per cent with redraw and 100 per cent offset.

Me Bank Basic Home Loan has a current variable comparison rate of 4.09 per cent. This loan for borrowers with 20 per cent equity, does not offer an offset account but does allow you to redraw.

Me Bank Flexible Home Loan with Member Package has a comparison rate of 4.20 per cent for owner occupiers with at least 20 per cent equity. This loan also offers redraw, portability and 100 per cent offset account.

NAB Bank has a current variable rate of only 4.17 per cent, but 4.21 comparison rate. This loan allows borrowers with only 5 per cent equity. It does not offer an offset account but does allow you to redraw.

You can research and compare all the home loans offered by all the significant lenders in Australia here.

Source: Infochoice.com.au

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