Awards show best of both worlds possible
The annual Best of the Best financial awards from Money Magazine have highlighted how competitive the home loan market is these days and that borrowers don't have to sacrifice flexibility to get the lowest interest rates.
The awards for the best full-feature home loans on the market went to HomePath, Nationwide Mortgage and RESI Mortgage for their low-interest rate loans that also offered great flexibility – the ability to repay weekly, fortnightly or monthly, make extra lump-sum repayments, redraw extra repayments and pay out the loan early. At interest rates more than 0.5 per cent below the bank standard variable rate, these loans were quite competitive on rate with no-frills loans but came with the added extras.
The award for best line-of-credit loan went to Yes Home Loans' Credit Access product with Wizard's Wealth Power coming in second. These loans offer a flexible all-in-one loan account that allows borrowers to have salary directly credited to the loan account and an attached credit card for day-to-day spending. Disciplined borrowers can save years worth of interest payments by making every possible dollar work to reduce the loan balance. Both these winning loans had interest rates below the prevailing standard variable rate in 2003 and the Credit Access product has no fees.