RateCity provides mortgage news and features, including a range of weekly stories and economic updates. By checking our mortgage news and features daily, you can ensure that you receive up to date, expert commentary on current financial and economic issues. Before you search, compare or apply for the best home loan for you, help yourself understand the market by reading mortgage news and features at RateCity.
| Company | Product | Rate % | Go to Site |
|---|---|---|---|
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Standard Variable | 6.39 |
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SuperStar | 6.47 |
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Premium Plus Pkg <$500k | 6.49 |
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Budget Home Loan | 6.52 |
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EasyStart | 6.54 |
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| Company | Product | Rate % | Go to Site |
|---|---|---|---|
|
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Great Rate HL 1-12m fxd | 6.69 |
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1 year Fixed | 6.74 |
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1 year Fixed | 6.79 |
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1 Year Fixed | 6.79 |
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Fixed ProPack1 1yr | 6.79 |
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| Company | Product | Rate % | Go to Site |
|---|---|---|---|
|
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2 Year Fixed | 6.79 |
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2 year Fixed n Easy | 6.95 |
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True 2 year Fixed | 6.99 |
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Fixed ProPack1 2yr | 6.99 |
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Great Rate HL 13-24m fxd | 6.99 |
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| Company | Product | Rate % | Go to Site |
|---|---|---|---|
|
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3 year Fixed | 6.89 |
|
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3 year Fixed n Easy | 6.97 |
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Classic 3 year Fixed | 6.99 |
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Great Rate HL 25-36m fxd | 6.99 |
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Fixed ProPack1 3yr | 6.99 |
|
| Company | Product | Rate % | Go to Site |
|---|---|---|---|
| Standard Variable | 6.39 | ![]() | |
| Premium Plus Pkg <$500k | 6.49 | ![]() | |
| Budget Home Loan | 6.52 | ![]() | |
| Home Sweet Home Ln$250k+ | 6.75 | ![]() |
Mortgages News & Features |
8th September 2010
Sold! How to prepare for buying a home at auction
Buying a home at auction can not only be an exhilarating experience but it can also be a great way to nab yourself a property at a great price. Unlike other ways of buying property, buying at auction can...
7th September 2010
Try before you buy your dream home
Trying before you buy a home, with an extended period to rent gives you the added bonus of having extra time to get your finances sorted in time for a home loan. If you decide that this option is for you...
7th September 2010
First home buyers could benefit from a home loan package
If you are a first home buyer, considering one of the major lenders through to the smaller brands is one of the toughest choices you will make when choosing a home loan. So why do so many Australians shop...
27th August 2010
Protect yourself from dodgy property cover ups
Some people will do almost anything they can to cover up major problems, especially if money comes into the equation. Take buying a house, for example. We have all heard of cases where the seller has covered...
20th August 2010
Home loans ranked 'poor' when it comes to switching
Do you have a mortgage but want to ensure you have the best deal available? One way to achieve this is by switching loans to receive a better rate. But how is this even possible if some financial institutions...
18th August 2010
Why it's important to have insurance if you have a mortgage
How would you pay off your mortgage and other debts if something terrible happened to the main breadwinner in your household? It's important to have insurance if you have a mortgage. As most of us don't...
16th August 2010
What’s your plan of attack for mortgage season?
Spring time; it's not only birds that start to fluff their nests, but it also marks the start of mortgage season. As winter comes to an end, history proves that spring is the time when borrowers take out...
6th August 2010
Oh baby! Why you should plan ahead for your home loan
Are you in the market for a home loan? RateCity investigates how having kids can affect mortgage applications in the US and if this could affect you. According to an article in The New York Times mortgage...
30th July 2010
Window of opportunity: save $1200 over three years on your home loan
RateCity shows you an opportunity that could save you money by fixing your mortgage within a few years. New research by RateCity found that the average three-year fixed rate home loans from more than 100...
30th July 2010
Buying your first home? Prepare to pay $15,000 before moving in
RateCity investigates the real cost of buying a home. Aside from saving for the deposit (which is generally 5 to 10 percent of the purchase price), you will need to outlay additional money for costs before...
13th July 2010
Don't trip: Beware the home loan borrowing trap
RateCity warns home owners and those in the market for a home loan how to take advantage of the recent announcement from the Reserve Bank without falling into the trap of over-borrowing.
9th July 2010
Why you could be charged an extra $40,000 on your home loan
RateCity looks into the effects that reduced discounts on home loan packages will have on borrowers and how you can still save on your mortgage. Many borrowers are drawn to home loan packages. Not only...
5th July 2010
Save $17,000 on your mortgage with non-bank lenders
Mortgages are a big deal to lenders and RateCity investigates the growing competition between banks and non-banks to find how you can save $17,000 off your mortgage.
5th July 2010
ASIC to crack down on early exit mortgage fees
RateCity looks into the Australian Securities and Investment Commission's planned crackdown on early exit fees for mortgages and what this new proposal means for you.
23rd June 2010
Save over $34,000 on your home loan
RateCity shows you how to save on your home loan and why you shouldn't give up on your dream of owning your own home while the housing market plummets.
23rd June 2010
Avoid the sting: Banks take $5billion a year from home owners
RateCity investigates just how much income banks earn from your home loan fees and how you can lessen the sting. Do you currently have a home loan and always seem to be paying fees? Well, the banks aren\\\\\\'t...
27th May 2010
Quitting smoking can save you $100,000 off your mortgage
RateCity investigates the huge savings smokers can make by quitting and paying down their mortgage. The latest interest rate rises have put pressure on most households with a mortgage. And if you’re...
27th May 2010
Can you really save more with a home loan package?
RateCity uncovers the benefits of choosing a home loan package over a regular loan if you are in the market for a home loan. But be careful of the catch - packaging can be harder to switch.
27th May 2010
Investors set to heat up property market
RateCity looks at the surprise investment boom in the property market as higher rates push home owners out. An increase in the size of home loans taken on by Australians is a concern, especially for first...
27th May 2010
Playing scrooge: beating banks at their own home loans game
Australian home buyers are facing some of the strictest lending requirements in recent years, as financial institutions demand more genuine savings before securing a home loan. But are Australians getting...
24th May 2010
Lenders keep a tight grip on home loan criteria
Lenders are showing no signs of easing their tight lending criteria for home loans. RateCity shows you its new findings as well as tips on how to score the best home loan for first home buyers.
24th May 2010
To build or not to build? That is the question
Are you in the market for a new home? RateCity helps you decide between building a new house or purchasing an existing home.
10th May 2010
Getting a home loan in spite of a bad credit history
Have you ever forgotten to pay a bill or two? Or previously been declined for a loan? You may be one of the many credit-impaired people with a desire to get into the housing market but are unsure if your...
10th May 2010
How to save your home from another rate increase
With six rate rises over the past eight months and four rate rises this year alone, home owners are feeling the pinch after yet another rate hike this month. RateCity looks at why refinancing your mortgage...
4th May 2010
Beat the mortgage blues: Fluff your nest without the price tag
Saving to buy your own home can be tough, but what’s even tougher is meeting those mortgage repayments. Here are some simple tips and tricks to help you swindle some extra cash for rising mortgage...
4th May 2010
Make late mortgage repayments a thing of the past
Are you thinking of skipping a home-loan repayment? With late fees costing up to $195, you may want to think twice. RateCity looks at what you can do to avoid late mortgage repayment fees.
27th April 2010
Investors take advantage of rate hikes
As interest rates rise, home buyers are taking a back seat with applying for home loans and investors are back in the game.
23rd April 2010
Unlock your equity the easy way
If you own your home but require extra money for whatever reason, taking out a reverse mortgage could be one option to consider.
19th April 2010
Relief for home buyers with smaller lenders
Housing finance numbers have declined according to new research. RateCity investigates how Australians can make buying a home a reality as interest rates rise.
19th April 2010
Don't be a statistic: Reduce mortgage stress
New research by RateCity shows that many households are at higher risk of mortgage stress. Discover why a large percentage of Australians are struggling to meet their repayments and how you can reduce...
6th April 2010
New home loan rewards for greener choices
The Federal Government set up a green loan scheme to encourage Australians to reduce greenhouse emissions. The scheme has wound up but a group of lenders have recognised the growing demand for green products...
6th April 2010
Big four banks making $1.33B extra from your mortgage
Are you with one of the big four banks for your standard variable home loan? If you are, you could be paying an extra $700 more in interest per year. RateCity investigates how the big four banks measure...
29th March 2010
Home loan rates going up: What you can do to dodge the bullet
We all are aware of interest rates and the effect that their changes have on the economy and more importantly on our bank balances. But did you know that each month interest rates are constantly changing,...
29th March 2010
Save $64,000 on your home loan with ease
Having a mortgage is a massive long-term financial commitment. So if there was a way for you to pay it off sooner, wouldn’t you jump at the chance to find out how? Here are some tips to show you how...
22nd March 2010
No incentives, no worries – 2010 is ripe for home buyers
Find the upside to downward pressure on the home loan market. Despite rising interest rates and the drawback of government incentives, 2010 may be the perfect time to buy a home, according to some mortgage...
22nd March 2010
Low doc, high cost: Be careful of low doc home loans
A growing number of Australians take up the option of self-employment each year, and for many, a ‘low doc’ loan offers the key to home ownership. Low doc home loans are pitched specifically at borrowers...
15th March 2010
How much will you pay for home loan satisfaction?
In the wake of Australia’s economic recovery, major banks have reported record profits and market share growth. This has raised concerns about the direction of banking competition in the country
15th March 2010
Need some money? Unlock the equity in your home
A line of credit or equity home loan is a short-term solution available to take help take the pressure off. It allows you to access funds as you need them, giving you the flexibility to pay for that new...
8th March 2010
What options do first home buyers have?
Australians hoping to snap up their first home this year will have to tackle growing property prices, rising interest rates and the continuation of tight lending conditions, all without the help of the...
8th March 2010
Rising rates will cost households $3.34 billion in 2010
Like both sides of a coin, low unemployment levels and rising home prices are indicative of an economy making a comeback from the GFC but on the flip side Australian households are being hit hard with...
1st March 2010
Borrowers snub home loans after rate hikes and lower incentives
Home loans have been on the decline in recent months, potentially due to the consecutive rate increases towards the end of 2009. With interest rates expected to rise even higher, borrowers are scrambling...
24th February 2010
Tough times ahead: How to manage your mortgage
Chances are you’re going to be living with your home loan for quite a while. And that means being able to handle the mortgage in good – and not so good, times.
24th February 2010
Home owners flounder while banks flourish in record profits
The Commonwealth Bank is the latest major bank to see record profits for the first half of the 2009-10 financial year. This has sparked concerns that interest rates will remain inflated above expected...
24th February 2010
Home loans: How much should you really be paying?
As interest rates increase, mortgage repayments can start to become a challenge for people with variable rate home loans. It is one thing to sign up for a mortgage, but what happens a year or two later...
15th February 2010
Silver lining for borrowers as new home sales fall
New home sales are suffering while the economy recovers, according to leading industry bodies. This has caused concerns over the future of housing sales in Australia and home loan prospects, due in part...
15th February 2010
No government guarantee to shake up home loan market
The Australian Government is taking away the home loan guarantee that supported lenders during the global financial crisis, in an effort to urge the economy towards independent recovery.
1st February 2010
Home loan dilemma: Aussies caught between interest rate hikes
The time to purchase a home loan may be nigh, as consumer confidence and economic indicators suggest more rate rises in the first half of 2010. Now the decision for home buyers is whether to rush into...
1st February 2010
Median Sydney home price to top $1million by 2020
Sydney’s median house prices will likely reach above $1 million by 2020, according to a new study conducted on metropolitan areas in the city.
18th January 2010
2009: A year in review for home loans
2009 was a big year for home loans, with hundreds of lessons to be learned for home buyers. Going into the New Year, home buyers will hate to repeat past mistakes. So what have we learned from 2009?
18th January 2010
Freebies for the picking: Home loans with extras
In an environment of rising rates it makes sense to get every ounce of value from your mortgage lender, and there are plenty of freebies available if you know where to look. The idea of getting something...
1st December 2009
New homes become the first buys for 2010
Experts believe that this is the perfect time for keen home buyers to snap up bargains in the housing market, which puts home loans at the top of many shopping lists. Is it a good time to buy a home with...
1st December 2009
Bricks and boards – Construction loans solve housing shortage
Many home loan borrowers are now considering taking up construction loans to save on costs and help with building more homes for future generations. The housing shortage is crippling Australia, according...
1st December 2009
Is it too late to switch to a fixed rate home loan?
Interest rates have begun their upward climb, sending a collective frown across the foreheads of Australians with a home loan. The question of fixing your home loan’s interest rate or taking a punt...
1st December 2009
Mortgage trends: Basic is in, fixed is out, and capped is hot
Despite a recent string of rate hikes, borrowers are shunning fixed rate home loans. The latest ABS figures on housing finance show that demand for fixed loans fell by more than 10 percent, with fewer...
1st December 2009
Rudd tells home buyers to stand on their own feet
When it comes to home loans, the Australian government isn’t prepared to hold consumers’ hands anymore, and home buyers are expected to rely on their own decisions, according to Prime Minister...
1st December 2009
When a cheap home loan could be costly
Not surprisingly, borrowers often make the interest rate their key point of consideration when shopping for a home loan. But a low rate doesn’t always offer the best deal
1st December 2009
Offset versus redraw: the winner is…
When you’re paying off a home loan, it doesn’t always make sense to hold savings in an interest-bearing account. Redraw facilities and offset accounts let borrowers use their spare cash to...
1st December 2009
Loan portability: Take your mortgage with you and save
The ability to transfer your home loan from one house to another, without having to fork out for the usual set-up and exit fees, is an increasingly attractive loan feature. Loan portability, as this feature...
1st December 2009
2010 Hotspots: Biggest property bargains revealed
A report of Australia’s cheapest property areas reveal ’hotspots’ for price growth that are almost $400,000 less than median house prices across the country. These bargain properties...
1st December 2009
Fast track your way to mortgage freedom
Paying off your home loan early doesn’t just free up valuable cash and provide the security of outright home ownership. It will also save you a bundle in interest.
30th November 2009
Summer buying: Now is the time to find a home and borrow
Summer is a season for family gatherings, beach holidays and long, lazy afternoons. For savvy home buyers, it may also be a good time to snap up your dream home and score the best home loan deals on the...
30th November 2009
Interest rates to hit 5 percent in 2010
The recent interest rate rises may be just the beginning of a long climb for home loan rates, with economists predicting that the Reserve Bank cash rate will rise to 5 percent by Christmas 2010.
23rd November 2009
How will first home buyer cap affect you?
Buyers’ Cap, which forces future buyers receiving the First Home Owners Grant (FHOG) to keep under a price limit. Those who are planning on taking a larger home loan will have to look elsewhere to save....
23rd November 2009
Don’t be wooed by home loan goodies
In this era of new austerity, home loan customers are sticking to the basics. While the housing market remains strong thanks to historically low interest rates and the First Home Buyers Grant, people are...
11th November 2009
Save $50,000 on your home loan - Here's how!
Interest rate rises hit home for people with variable rate mortgages, despite being cheaper than most fixed rate loans. When looking at home loans it is easy to be drawn in by promises of low interest...
11th November 2009
Outright home ownership harder than ever
Home ownership might be further away than ever, with the proportion of Australians who own their homes outright dropping, according to recent findings by the Australian Bureau of Statistics (ABS).
11th November 2009
Mortgage competition warms up in time for a merry Christmas
Be sure to shop around for home loans with lower fees and better features as the economy warms up in time for Christmas and lenders become eager to compete for market share. RateCity CEO Damian Smith says...
9th November 2009
Mortgage talk made easy
Buying a new home is a trying time and the jargon bandied about by mortgage brokers, banks and real estate agents can add to the confusion. Whether you’re buying your first home or trading up or...
9th November 2009
To buy or not to buy - Clearance rates skyrocket
Is now the time to ride the property market clearance wave or wait till the tide turns? A sales splurge has swept the Australian mortgage market, with hundreds of properties clearing out every week.
2nd November 2009
Rate rise drives first home buyers out
The future for first home buyers remains uncertain, with more and more exiting the home loan market every month. And now as interest rates rise, and government grants are reduced, their triumphant return...
2nd November 2009
Do packaged loans really save a bundle?
Packaged home loans are very popular, especially when interest rates are rising. But be sure to crunch the numbers to see just how much of a discount you’ll enjoy. A package home loan may not always...
27th October 2009
Refinancing traps and how to avoid them
The tips and traps for refinancing your home loan. As interest rates begin to creep upwards, home owners are more likely to consider refinancing their home loan in a bid to score a better deal.
27th October 2009
Are coastal homes an affordable dream?
A fall in coastal property prices over the past year has created more opportunities for people thinking of a sea change. As people scrambled to snap up houses in metropolitan areas, competition on the...
27th October 2009
Watch your credit habits – Tougher lending on the way
New credit and privacy laws could make it harder and more expensive to get a home loan so get your credit habits in order now. A new national scheme for regulating credit is to be phased in between now...
26th October 2009
Home alone: Can single income buyers afford a home?
Many young professionals on a single income have been pondering their chances of survival in the home buying game. But how affordable is it to step into the property market right now?
26th October 2009
What is the real cost of buying a property?
What exactly do you have to pay for when purchasing a home? Number one fee to hit your back pocket of course is stamp duty, followed by more upfront fees.
16th October 2009
Are you wasting $2,700 on home loan fees?
Interest may be the key expense of a mortgage but it pays to be mindful of ongoing fees that can significantly boost the overall cost of a loan. A review of more than 2,000 Australian home loans by RateCity...
16th October 2009
Fixed last year? Switch now and pocket $720 a month
Many Australians can save $720 a month by switching from last year’s high fixed rates to a variable home loan. Australian mortgagees may be panicking in light of the interest rate rise announced...
9th October 2009
Future suffering: First home owners to battle rising rates
Thousands of first time home buyers have cruised into the housing market this year. However, with interest rates set to rise, many home owners could be heading towards mortgage stress.
9th October 2009
Women and mortgages: Tackle your home loan fears
If you’re a single woman and the prospect of finding a mortgage leaves you overwhelmed don’t feel alone - most women feel just like you. There are some positive steps you can take to become more...
2nd October 2009
Smart ways to beat rate rises and mortgage stress
Falling behind in your repayments or suffering mortgage stress
2nd October 2009
Rudd's First Home Owners Boost - How much is it really saving you?
If you are buying your first home you’re no doubt keen to get the Federal Government’s First Home Owners Grant as well as the First Home Owners Boost. With the cut-off date for the Boost fast approaching...
23rd September 2009
Discounted home loan rates: are you eligible?
There are several ways to save on your home loan when interest rates are on the rise. Economists are tipping a string of Reserve Bank rate rises in the next year and many lenders are already raising their...
23rd September 2009
Interest rate wars: How fixing can save you thousands
With the Reserve Bank ready to raise official interest rates any tick of the clock, it’s still possible to find a good fixed rate home loan deal. Unless you have a crystal ball it is difficult to...
23rd September 2009
How to negotiate and knock $30,000 off your home loan
Once you’ve done the hard work of securing your home loan it’s easy to feel as if you’re locked in for the next 25 or 30 years. But with some competitive deals on offer right now it could...
19th September 2009
Out with the old - are new home loans ripping us off?
As competition heats up between the banks, new home loan features are sweeping the mortgage market in a bid to attract consumers to fresh, innovative products.
19th September 2009
The home loan from hell
Nightmare mortgages and how you can avoid ending up with the home loan from hell. In March 2008, Alan and Esther found the home of their dreams. They needed a $300,000 home loan to pay for the property...
14th September 2009
Jumping the home loan hurdles
What are the smartest strategies for securing a home loan? It can be tough to qualify for a home loan but by having a strategy you can increase your chances, not only of getting the loan you want, but...
11th September 2009
Refinancing: Benefits or Risky Business?
As the economic downturn continues to impact our financial stability, refinancing your home loan is a more promising option for many home owners. Paying off a mortgage can sometimes seem like financial...
9th September 2009
The Investor Returns
If you’ve decided it’s a good time to buy your first investment property there are plenty of competitive home loans around to help you finance the deal. Investors are returning to the residential...
8th September 2009
Hot auction and home loan tips
If you are considering buying a property at auction, there are a few important facts you need to know about home loans. The first step before you start bidding is to shop around for the best deals to secure...
1st September 2009
Save thousands with a home loan package deal
Packaging your mortgage with a credit card and bank account can save you thousands of dollars over the life of your loan, but are you really better off?
1st September 2009
How to beat mortgage stress
As housing prices have increased in recent months and media speculation grows of imminent interest rate rises, mortgage stress may soon be rising however there are simple steps to take now to keep you...
26th August 2009
FHOB rush: Guide to finding the best home loan
Don’t lose your head in the rush to find the right house and the best mortgage before the government’s Boost payments are reduced after September 30. Jackie Pearson investigates tips to finding...
26th August 2009
Spring break - Mortgage borrowers go wild!
Spring is the time of the year when both the residential property and mortgage markets thrive - just be careful you end up with the right house and the right mortgage. Real estate agents call it the Spring...
19th August 2009
How to avoid hefty home loan fees
19th August 2009
Is your home too expensive?
10th August 2009
Mortgage Affordability: Can you secure a home loan?
31st July 2009
The First Home Owners Boost - who is it really good for?
31st July 2009
Buyer Beware: Have you been fooled by teaser rates?
22nd July 2009
Financial Hardship: De-stress Your Mortgage
22nd July 2009
Avoiding Lenders Mortgage Insurance
9th July 2009
Cashing in on a fixed rate
1st July 2009
How to spot a winning fixed rate deal
1st July 2009
Should you stick with the big four?
26th June 2009
Stamped Out: Stamp duty tax reviewed
26th June 2009
Australian lenders unite to help floundering mortgages
23rd June 2009
Dont forget stamp duty
23rd June 2009
Time to buy your first investment property?
19th June 2009
Repossession Risk: Review your mortgage at tax time
17th June 2009
Rate rebels: Banks hike fixed rate home loans
16th June 2009
Dont get in a fix over rates
11th June 2009
Worst of the downturn: Home repossessions ravage households
11th June 2009
Property discounting: Why your home isn’t getting its worth
10th June 2009
Stress test your mortgage
10th June 2009
Home Investments: Keep it in the family
5th June 2009
Can you afford a house without government incentives?
5th June 2009
Home Run: Best ways to save for a home
1st June 2009
How to cut on capital gains tax
1st June 2009
Billion dollar bank fees
25th May 2009
Do you need a pre-nup?
13th May 2009
Do your sums before refinancing your mortgage
8th May 2009
Housing Conflict: Industry bodies clash over FHOG
5th May 2009
Rate Race: Making the most of low rates
5th May 2009
Cut and Run: ‘Big Banks’ raise fixed mortgage rates
29th April 2009
Interest rates...to fix, or not to fix
29th April 2009
Home loan applications: How to avoid rejection
27th April 2009
Booster Blues: No extension for FHOG boosts
21st April 2009
The Fee Battle: Government attacks exit fees
20th April 2009
Size Matters: Where are the big house lots?
14th April 2009
House mapping: Same neighbourhood, half the price
7th April 2009
Can you really afford that mortgage?
7th April 2009
Check State Rules for First Home Grants
3rd April 2009
Market Movers: Australia’s property growth hot spots
17th March 2009
Buying Oversights: Hidden house costs
17th March 2009
Boost-clock ticking for first home buyers
16th March 2009
First-time home buyer? How to keep your head
13th March 2009
Bricks made of money: The home equity journey
11th March 2009
Interest rates: How low can they go?
11th March 2009
Property Pull: Competition set to rise
17th February 2009
Redundancy: Protect yourself and your wealth
10th February 2009
Couple Commitment: Buying a home
3rd February 2009
RBA slashes interest rate to 3.25%
27th January 2009
Investment Interest: rentals rule property market
27th January 2009
Tighter Home Loan Rules - What you need to secure a mortgage
14th January 2009
Real Estate Outlook: 2009 Is The Year To Buy
9th December 2008
Warning: Home and Land Financial Deals
18th November 2008
House Hunt: Cheapest Cities in Australia
4th November 2008
Should you refinance your home loan?
29th October 2008
What will really happen to housing prices?
22nd October 2008
How to make the most of higher First Home Owner Grant
16th October 2008
Rates Down But Show Us The Money
8th October 2008
Will small lenders survive the credit crunch?
23rd September 2008
5 ways to increase the value of your home
23rd September 2008
Coming soon: First home saver accounts
16th September 2008
Renovation rescue: is it worth it?
9th September 2008
Mortgage rates cut, card rates soar
1st September 2008
Will the major banks pass on interest rate cuts?
26th August 2008
Not all banks may pass on rate cuts
5th August 2008
Are mortgage rates set to drop?
30th July 2008
How to buy a home: no deposit needed
1st July 2008
5 Step Guide to Offset Account Bliss
25th June 2008
DIY: How to sell your own home
11th June 2008
Five reasons to refinance
13th May 2008
Top 5 Ways to Stop Paying Rent
6th May 2008
The Simple Guide To Becoming A Property Tycoon
30th April 2008
Interest rates rising: should I rent or buy?
17th April 2008
Questions you should ask your home loan lender
17th April 2008
What to look for when choosing a home loan
10th April 2008
We pay through the nose to exit home loans
4th April 2008
Switching home loans - a step-by-step guide
28th March 2008
Is now the time to fix your home loan?
13th March 2008
Bathroom bliss: how to pay for those renovations
3rd March 2008
Savings Plan to Save the Australian Dream
20th February 2008
Top Tips for Saving a Home Loan Deposit
4th February 2008
RBA issues first rate rise of 2008 amidst global turmoil
24th January 2008
Why NOT to lock your home loan rate
9th January 2008
Ways to save when you live on your own
5th December 2007
Lock it in please!
5th December 2007
Tax deductible home loans
28th November 2007
Move House But Keep Your Loan
22nd November 2007
How to avoid extra honeymoon rate baggage
2nd November 2007
Swinging singles spend up big on the house
2nd November 2007
The Secret How to boost your borrowing power
26th October 2007
Loans to build your dream
26th October 2007
Top ten ways to beat the rate hike
19th October 2007
How to navigate fee-infested mortgage waters
12th October 2007
Spending the kids' inheritance
12th October 2007
Take a mortgage holiday
11th October 2007
How to fit your home loan around your lifestyle
4th October 2007
Money matters: Who can you trust?
4th October 2007
U.S. mortgage meltdown
28th September 2007
In the dark
13th September 2007
What Caused The Sub-Prime Crisis?
12th September 2007
Crisis-proofing your mortgage
12th September 2007
Heads or tails on future rate rises
12th September 2007
Aussies rush to fix mortgage rates
3rd August 2007
Rate Rise Jitters
15th June 2007
Avoid the sting on sunset
14th May 2007
Equity Rich, Cash Poor?
11th May 2007
Building your dream home?
10th May 2007
The Loan That Never Dies
4th May 2007
Split Mortgages
Hints & Tips
Make sense of it all with these Home Loan hints & tips.
About Home Loans
Fixed or variable rate?
Selecting mortgage features - a few tips
Things to know before visiting your lender
Questions you should ask your lender
Low Doc Loans - do I need one?
Credit-Impaired (non-conforming) loans - do I need one?
What is a Reverse Mortgage - do I need one?
Reverse Mortgage General Tips
What should I ask about Reverse Mortgage products?
About Home Loans
When deciding on a home loan, you have four interest rate options to consider:
- introductory or 'honeymoon' rate
- variable rate
- fixed rate; or
- split loans (a mix of fixed and variable rates)
Fixed or variable rate?
Pros - Fixed Mortgage
Fixing your interest rate guarantees your repayments will stay the same for a set period of time and gives you a measure of protection against rate rises. This gives you the ability to budget more accurately over the the term of the loan.Cons - Fixed Mortgage
If interest rates go down, you're stuck with higher repayments. There are, usually, higher penalties if youo pay out your loan earlier than the fixed period.
Pros - Variable Mortgage
If interest rates go down, you benefit from lower repayments. On average, interest rates are lower with a variable mortgage. The standard variable loan offers more flexibility with features and gives you the facility to make additional repayments and access that money later on. Extra repayments can also be used to reduce the total amount of the interest owed.Cons - Variable Mortgage
The basic variable loan is less flexible with features and there are fewer facilities to make additional repayments and access that money later on. If interest rates rise, so will your repayments.Doing your own Mortgage Analysis
When analysing your requirements, remember it all boils down to whether your finances can cope with the variances of interest rate movements during the period of your loan. The main reason you fix your interest is because you are confident the rate will go up in the next few years and, in theory, you should actually save money by committing to the fixed interest. For some borrowers, it is important to know exactly how much of their income they must pay towards their loan. These borrowers don't like 'surprises' such as rate rises that throw their budgets into disarray. On the other hand, a popular way to go is to fix part of the loan and leave the rest as variable. So you get the best of both worlds - a partial hedge against rate rises and a benefit if rates go down. Be mindful that there are usually costs involved with fixing or unfixing the rate of your loan and in switching from one lender to another, so make sure the benefits outweighs the costs.
Selecting Mortgage Features - a Few Tips
Features cost money and you may well find a cheaper product with less features will do the job for you. Check the CANSTAR CANNEX mortgage star ratings report for a true idea of value for money. The star ratings researches more than 200 product features and using it can save you a lot of time, while arming you with valuable information.
If you expect some lump sum payment in the future and are planning to deposit this into your mortgage, check if a fee applies when the lump sum exceeds a specified amount. A full offset account can be a useful feature. Later on, when you have built up some equity in your home, you may want to access funds for renovation, etc and this could be the perfect way to do it.
Check mortgage portability, another useful feature if you plan to sell the house and buy another of equivalent value. You can use the same mortgage for the new home, cutting out the extra time and expense involved in arranging a new mortgage.
Things to know before visiting your lender
Understand what offers are out there and the common terminology used in mortgage products - see our Financial Dictionary section for help. Lastly, be very clear on your need (e.g. must have a redraw and split options) before you talk to any lender.
Questions you should ask your lender
- Is there any ongoing fees on the product?
- Any restrictions in paying your loan earlier? (check deferred establishment fees and early repayment penalty)
- Can the loan be taken as part of a package?
- Ask the comparison rate of the loan (check AAPR).
- Make sure examples highlighted by your lender actually apply to you. For example, in order to save, will you really have $5,000 in your full offset account for the life of you loan?
Low Doc loans - Do I need one?
The answer is yes if you are self-employed with limited financials (2 years), or you receive fluctuating incomes from a variety of sources. A low-doc path is also wise if you choose not to fully disclose your financial situation when applying for a home loan.
Credit-Impaired (non-conforming) loans - do I need one?
You do if your past includes being declared bankrupt, having unpaid bills/invoices or missed mortgage payments on your financial record.
What is a Reverse Mortgage - do I need one?
Although the concept of a reverse mortgage can be appealing, it may not be the best option for everyone who is asset rich but cash poor. As the name indicates, a reverse mortgage works the opposite way to a standard mortgage. Instead of you repaying a lender, the lenderwill give you money from your equity in the property. Thus, you are not building equity, but reducing it.
To obtain a reverse mortgage, borrowers need to own their property outright. For a property to be considered eligible for use as an asset for a reverse mortgage, there must be no other outstanding claim to ownership. If a retiree is only looking for a short-term loan (e.g. $5,000), they would be better off taking out a personal loan from a relative or financial institution.
For larger amounts, the borrower might even still be better off selling their property and purchasing a cheaper one. If, however, you've decided you would still like to remain in your property for an extended period and don;t mind the property being sold once you leave the premises for good, then a reverse mortgage might be ideal for you.
A reverse mortgage or an equity release product enables retirees to convert part of the equity in their homes into stream of incomes or lump sum payment without having to sell the home, give up title, or take on a new monthly mortgage payment.
Instead of making repayments into the mortgage, borrowers will have options to receive regular payments or a lump sum payment from lender as part of releasing equity from their house.
It is designed
for retirees who do not have a regular stream of income, equity rich and need
cash to cover their retirement lifestyle.
Reverse Mortgage General Tips
- Decide whether you need to release your equities from your property as a lump sum payment, instalments or as a combination of lump sum and instalments.
- Ask your lender whether they have a "no negative equity guarantee", which ensure that they can't ask you to leave your house when your debt is greater than the value of your property.
- Interest rate options: other than standard variables and fixed rate loans, some providers offer a fixed rate for the life of the loan, or a variable with a capped rate.
- Ask whether you can make a repayment to reduce your debt.
- Compare minimum draw down amounts. Maybe you would prefer to withdraw $100 a month rather than $50,000 in one hit.
What should I ask about Reverse Mortgage products?
- Will equity release payments affect the social security benefits and income tax position of my partner and I?
- How much can I borrow now and as I get older?
- How much will upfront and ongoing fees cost me over time?
- Under what conditions will my loan become due?
- Is the interest rate variable, fixed for a period or the life of the loan, or can it be split between variable and fixed?
- Can my partner still reside in the property if I, the primary loan applicant, die?
- Are there any penalties if I decide to repay the loan earlier than expected?
- Are there any other obligations such as home maintenance, property taxes and insurance that I should be aware of?















