Nila Sweeney

Pacific Mortgage Group's standard variable loan came out on top in the October issue of Your Mortgage magazine's Editor's Choice competition, thanks to its low interest rates and low fees.

The cheap rate of 6.99% is complemented by no upfront fees. The product provides the biggest savings in comparison to the average standard variable loan in the market after five and 10 years.

Based on a loan of $300,000 at 80% loan to value ratio (LVR) over 30 years, you can save $9,423 in five years and $16,638 in 10 years. The savings are less after three years because of an exit fee for the first three years of $2,095 - this drops to a more manageable $295 after five years.

For the complete list of top-ranking standard variable rate products, read the latest issue of Your Mortgage magazine, on sale now.

How the loans were compared
The team at Your Mortgage has worked out the 'true cost' of all 146 standard variable loans in our books by taking into account the interest rates and every fee, including upfront, ongoing and deferred establishment fees, which are correct as at 10 July 2007.
By adding all fees to the cost of principal and interest (P&I), we calculate the true cost of P&I over a mortgage life after three, five and 10 years.
This month, we base our calculation on a loan amount of $300,000 at 80% LVR taken over 30 years.
The title of 'Overall Winner' goes to the product that is the best value in all categories.

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