Low interest home loan/mortgage


The problem

Banks have a lot of overheads and despite their reported profits being in the billions of dollars, they seem to be so money hungry that Westpac and a few other banks are now increasing interest rates when the reserve bank has decreased them.

The solution to this problem is that we need to find alternative home loan funding options, using financial institutions with low overheads.

The CEO of Westpac bank will get a fat bonus every year, a bonus that would take us mortals a lifetime to try earn, with sweat, blood and tears. However for him, he just raises the interest rates, adds a few more billions of dollars to the bottom line and VOILA he gets a 15 000 000 Bonus at the end of the year.

What other banks offered me:
NAB –  4%
Westpac  – 5.29%
Commonwealth Bank- 5.2%
Citibank –  3.8% (Plus lots of fees)
Bankwest – Declined (They are my primary banking platform for 6 years)
Loans.com.ay – 3.49%


Bankwest, is my primary bank, I been banking with them for 6 years, they declined my dream. I had enough money in my bank account to pay 40% of the house. They declined me because I went on a gap year holiday to live my dream with my partner before we settled to buy a home.

The solution

Luckily loans.com.au took the time to understand my background and life story. They were excited to see we travelled a year and blogged about it at ecodrifter.com. They decided to support our dream and fund the rest of our home loan.

Find a loan provider that is not a bank and does not have physical branches that you walk into. Find an institution that provides competitive interest rates. Lastly do not over leverage, borrow with in your means, so when interest rates do eventual go up, you have a huge buffer. Live in a humble home and be happy, rather than over extend.

I spent weeks on research the best value for money regarding finance.

I currently have my mortgage for a beautiful home with loans.com.au, at a variable interest rate of 3.49%.


Shop around, I encourage you to find a financial institution that is not a bank where you can walk into a branch. The people have the power if we stand together.

Banks will only get greedier when the Australian Government has no regulations. You cannot explain Banks increasing interest rates when the reserve bank is decreasing rates. You cannot justify this increase when the Banks are making Billions of dollars in profits.



Do not be lazy! Shop around and get the best home loan.

  1. Ensure you have an offset account, so any money you have in there can offset your interest charges. If you got $10000 in savings, put it int he offset account, so your interest charges are lower. This alone will pay off your home loan 5 years earlier on a 30 year home loan. Mandatory, always have an interest offset account.
  2. Put you and your partner’s salary in the offset account
  3. Set your debit orders to go off as late as possible, so money is sitting in the account
  4. Get a 52+ day interest free credit card linked to miles e.g. Virgin Velocity
  5. Buy everything on the card, then pay it off on the 50th Day. This means more money sitting in the offset account, reducing interests on your home loan 🙂
  6. Save, Save and Save (Screw the Latte Coffee’s every morning!), put those $5 into ACORNS
  7. Don’t squander your money on crap, live minimalist. You reduce your carbon footprint and the earth benefits from you. It might seem pointless, but it all adds up.
  8. Donate your old clothes.
  9. Do not BUY anything at a shopping centre. You can always getting the exact same item for cheaper online and usually you get a $100 wine voucher e.g. kitchenwarehouse.com
  10. Use your Velocity points to live in awesome hotels on your holiday for free! That is exactly what we did when we went to Dubai.


#Bankwest #Westpac #CommBank are greedy. #loand.com.au is awesone for now 🙂



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