Top Home Loan Picks for Refinancing

Some guidance if you're in the market for a new home loan.

It's pretty hard to escape news about refinancing for a better interest rate at the moment. Not only are we bombarded on social media by banks and mortgage brokers (apologies but we're included in this one) but if you happen to be a person who tunes into A Current Affair or Today Tonight you would have seen a few segments on this topic. I'll be the first one to say that the adverts are warranted because you can save cash but I think it helps to give you some more direction if you are in the market or thinking about it. So here's a look at our top refinance picks for a home loan over $250,000.

Our pick of the bunch for owner occupiers.

I am are still currently favouring variable rate loans at the moment mainly because we can't see a near term increase in official interest rates. For that reason we really can't go past ING's 3.74% Variable Advantage Package. This full feature loan package is a really good option equipped with 100% offset, redraw, extra repayments and an interest only option. The other upside is the annual package fee ($199) is currently waived for the first year. The only downside is that ING are taking a bit longer than normal to approve loans as a result of an influx of applications. It's worth the wait though. I do have to make a special mention for NAB here to. While there rates are not the cheapest at 3.99% the option for 250,000 Virgin Velocity points is a deal winner if you have the travel bug. For some context you can get two return tickets to New York for that many points.

If you are keen on a fixed rate look no further than Bankwest's Complete Package 3.69% 2 Year Fixed Rate Loan. There are cheaper fixed rates out there but not with the sort of features you get in this one. For $395 annually you get access to redraw, extra repayments ($10,000 annually), interest only and the best part a partial offset facility (pretty rare in the fixed rate space). The will also include the cost of a credit card if your that way inclined.

For those with investment properties.

We like Adelaide Bank's SmartSaver or SmartFit. At 3.99% for a variable rate loan you really cant go past this one. Packed full of features including redraw, extra repayment and interest only on the SmartSaver or the addition of 100% offset for $15 per month with the Smartfit we really can't go past this one. It's a must have for investors looking to save but worth noting that this product is only available through some mortgage brokers.

For those looking to fix, St George's 2 Year Fixed Rate would have to be our pick at 3.89%. It's a very similar product to Bankwest fixed rate offer in this space with redraw, offset, extra repayments and interest only but comes with an added bonus of $1,500 cashback which will cover the refinance costs, the $395 annual fee and leave you with some change. Be mindful that the cashback offers expires on the 30th of September 2016.

So, if we have inspired you to make a change drop us a line. We'd be happy to help.

Your full financial situation would need to be reviewed prior to acceptance of any offer or product.

Information as at 05/09/2016

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