Why G&C Mutual Bank's Momentum Home Loan is a strong performer at the 2022 Finder Awards.
Written by Richard Whitten, home loans editor at Finder.
G&C Mutual Bank's Momentum Home Loan won a Finder Award in the category of Low Deposit Variable Home Loan, and it's also a finalist in the Owner Occupier Variable Home loan category. Looking at the data, it's easy to see why this loan is a winner.
The Finder Awards uses a strict methodology to determine the award winners. For both categories, we judge a home loan first of all by how low the interest rate is. Regardless of a borrower's circumstances, a lower interest rate always saves you money in the form of lower repayments.
We also look at loan fees, because no one wants to pay more money on top of their mortgage. Additionally, we score home loans higher when they have a 100% offset account. This is one of the most useful features for a home loan.
An offset account essentially turns your home loan into a bank account where you can park your savings. But they have the added benefit of reducing your interest charges at the same time. It's a great feature that lets you have your cake (save money and spend when you need it) and eat it too (pay less interest while the money is in the account).
Based on all of the above, the Momentum Home Loan is a strong home loan. It has an interest rate that is consistently low. We look at every loan's interest rate not just once, but across the year in order to judge this properly.
The loan also has very minimal fees. You see this reflected in the loan's comparison rate (which takes fees and the interest rate into account). The loan's comparison rate is almost as low as the interest rate.
And the loan has that useful offset account feature too. It's a strong combination all around.
What makes this product the overall winner in the low deposit award category is one other aspect of the loan. The maximum insured loan-to-value ratio. This is home loan jargon that just means your required deposit size. The higher the loan-to-value ratio, the smaller your deposit can be. The Momentum Home Loan lets you borrow 95% of your property's value. This means you just need a 5% deposit.
For Australian borrowers, a 5% deposit is about as small as you can get. While it does mean you probably have to pay lenders mortgage insurance, it does make it easier to enter the property market without saving a big 20% deposit.
So we can see that with a very low interest rate, a 100% offset account and very few fees, the Momentum Home Loan is a strong contender at the 2022 Finder Awards. And with the extra advantage for low deposit borrowers, it's the overall winner of our Low Deposit Variable Home Loan Award.