Wizard Home Loans Rate Breaker Loan has won the top spot in the December issue of Your Mortgage magazine's Editor's Choice competition, thanks to its bargain interest rate of just 6.71% (correct as of 18 September 2007).

The Rate Breaker managed to outperform the competition in all three categories: three, five and 10 years. Based on a $300,000 loan at 80% over 30 years, the Rate Breaker can save you $5,586 after three years and $23,144 over 10 years, compared to the average loan in our books.

The loan also carries reasonable start-up and ongoing costs of $760. However, it does not offer any flexible options such as redraw, extra repayments and offset facilities. In addition, if you pay off the loan within three years you will be hit with a $3,050 fee.

For the complete list of top-ranking fixed rate products, grab the December issue of Your Mortgage, on sale from 1 December.

How the loans were compared
The team at Your Mortgage has worked out the 'true cost' of all 55 basic variable rate home loans in our books by taking into account every fee, including upfront, ongoing and deferred establishment fees, as at 18 September 2007.

By working out how much a given loan will cost after a range of time periods - three, five and 10 years - we show you the impact that these fees can have on the total cost of your mortgage. After adding all fees to the cost of principal and interest (P&I), we calculated the true cost of a mortgage over three, five and 10 years. This month, we based our calculations on a loan amount of $300,000 at 80% LVR taken over 30 years.
The 'overall winner' title is assigned to the product that offers the highest average savings over three, five and 10 years, compared to the average loan in our database.

Check out the Your Mortgage website at www.yourmortgage.com.au for the full list of top-rated home loans.