Looking for a no-fee home loan? Read about where to look and how much you can save when you compare with Savvy.
Fact checked
No-fee home loans were once as common as unicorns, but these days they’re far more widely available. You can now choose from a variety of different lenders in Australia with Savvy, so it’s just a matter of knowing where to look and how to qualify. You can find out how much you can save here by comparing the best no-fee loan options available before you decide on your mortgage.
Forget loan establishment fees and ongoing account-keeping fees: you can potentially save thousands of dollars over the life of your loan by comparing offers here.
You have the flexibility to choose either a fixed rate loan or a variable interest rate loan, giving you the ability to tailor your loan to your needs.
Pay off your loan sooner and reduce your interest payments even more by making lump sum payments on your loan, shortening your loan in the process.
Adding an offset account to your loan can help you save even more by offsetting any savings you have against the principal sum you borrow, reducing your payable interest.
Apply for your no-fee loan whenever is convenient for you with a safe and secure loan application process, with fast approvals always possible.
You don't have to pay a cent to compare home loans with us, enabling you to do so at any time.
You can fill out a simple online quote via our form without having to worry about sorting through heaps of paperwork.
With a panel of reputable mortgage lenders behind us, you can rest assured you'll be comparing high-quality options.
You’ll be regarded as a high-quality applicant if you have a steady, secure job that you’ve been in for several years, plus a good credit history. To ensure you have a good credit history you should continue to pay all your bills on time and clear off your credit cards at the end of each month.
Don’t change your residential living address, email or phone number too often to demonstrate lifestyle stability.
If you’re able to provide a deposit of more than 20% of the cost of the home you’d like to buy, you stand a better chance of being accepted for a no-fee loan. Some lenders may ask for up to a 40% deposit to qualify for fee-free home loans.
If you can provide a larger deposit, you’ll also avoid the possibility of having to pay Lenders’ Mortgage Insurance (LMI).
If a lender wants to charge you fees, you don’t always have to agree. If you’re a high-quality applicant, lenders will want your business and may be prepared to waive certain fees if you ask. Know your worth and be prepared to negotiate with your existing lender to have fees waived.
The worst a lender can do is say ‘no’ to waiving fees, in which case you can shop around and find a lender who’s prepared to say ‘yes’.
If you’re refinancing, you may be able to use the existing equity in your home as additional security, making yourself a lower risk and therefore more attractive to lenders.
For example, Celia bought a property for $495,000, but when she went to refinance three years later, she found her home was now worth $545,000, so she had an additional $50,000 worth of equity in her home which she could use as loan security.
Savvy has been comparing home loans for over a decade, so you can trust us to help you find the best deal. Our loan comparison table provides you with all the information you need to find a no-fee loan that perfectly suits your needs.
You can make a more educated choice and compare a variety of available options all in one place.
Yes – there can be many benefits to refinancing your existing loan, such as to take advantage of lower fees and additional cost-saving features like reduced interest rates. However, if you are looking at refinancing an existing loan, you shouldn’t look at fees and interest rates in isolation. If you take out a loan with a slightly higher interest rate just to avoid paying any fees, you may end up paying more overall.
Also, beware when lenders advertise ‘no ongoing fees.’ This may not mean there are zero fees in total, as the fees charged may be a one-off (but it’s still a fee you have to pay). For example, a lender may advertise a ‘no-fee’ loan which only applies to variable rate loans, with a ‘fixed rate fee’ of several hundred dollars charged for fixed-rate loans.
Ongoing monthly fees may seem like a small cost, but they can add up over the life of the loan. For example, an account keeping fee of $15 per month will add up to $180 a year, or $5,400 over the life of a 30-year loan. A $365 per year account keeping fee adds up to $10,950 over 30 years. You will save all these costs if you opt for a no-fee loan.
Ideally, you should try to find a loan with both. Luckily, Savvy makes it easy to compare no-fee loans to make the journey easier for you.
The chart below compares the cost of a home loan with no fees, the same loan with fees, and the same amount borrowed with no fees and a lower interest rate:
| Type of home loan | Based on loan of $350,000 - interest rate and fees | Total interest and fees payable over 30 years |
|---|---|---|
|
No fee loan |
2.8% p.a. interest |
$0 fees |
$157,363 |
|
Same loan with added fees |
2.8% p.a. interest |
$375 establishment |
$360 annual fee
|
$690,002 |
|
Loan with lower interest rate and added fees |
2.5% p.a. interest |
$375 establishment |
$360 annual fee
|
$140,992 |
|
Loan with lower interest rate and
no fees
|
2.5% p.a. interest |
$0 fees
|
$129,817 |
Overall saving: $27,546
|
*Calculations based on fortnightly loan repayments over 30 years
As you can see from this chart, if you get a no-fee loan, you could save yourself thousands in loan fee charges, and by using Savvy to compare lenders, you can also find a loan with the lowest possible interest rate too, so you can enjoy the best of both worlds.
Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.
We’re partnered with lenders, insurers and other financial institutions who compensate us for business initiated through our website. We earn a commission each time a customer chooses or buys a product advertised on our site, which you can find out more about here, as well as in our credit guide for asset finance. It’s also crucial to read the terms and conditions, Product Disclosure Statement (PDS) or credit guide of our partners before signing up for your chosen product. However, the compensation we receive doesn’t impact the content written and published on our website, as our writing team exercises full editorial independence.
For more information about us and how we conduct our business, you can read our privacy policy and terms of use.
© Copyright 2024 Quantum Savvy Pty Ltd T/as Savvy. All Rights Reserved.
© Copyright 2024 Quantum Savvy Pty Ltd T/as Savvy. All Rights Reserved.
Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.
We’re partnered with lenders, insurers and other financial institutions who compensate us for business initiated through our website. We earn a commission each time a customer chooses or buys a product advertised on our site, which you can find out more about here, as well as in our credit guide for asset finance. It’s also crucial to read the terms and conditions, Product Disclosure Statement (PDS) or credit guide of our partners before signing up for your chosen product. However, the compensation we receive doesn’t impact the content written and published on our website, as our writing team exercises full editorial independence.
For more information about us and how we conduct our business, you can read our privacy policy and terms of use.
