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Some of the top-rated home loans in November 2023
There’s a strong chance that the next meeting of the Reserve Bank of Australia (RBA) board in November 2023 will see the national cash rate rise. All of Australia’s Big Four banks are predicting that the 13th rate hike since April 2022 will arrive in November 2023. But what does this mean for Australian homeowners and first home buyers?
According to RateCity research, an average owner occupier that started with a $500,000 debt and a 2.86% variable interest rate at the start of the hikes would see a $76 increase to their monthly mortgage repayments following a 13th hike. Combined with the 12 hikes already delivered, it would see this borrower’s monthly repayments rise, in total, by $1210 - a 52% increase since the start of the hikes in May 2022.
Rising rates could also raise the bar for first home buyers to clear, making it that little bit harder to climb that first rung on the property ladder without utilising extra support, such as government grants, assistance schemes, or help from a guarantor.
To get a better idea of which home loan deals may offer the most value, consider comparing their Real Time Ratings™ which combine their cost and flexibility into a single star rating. As these ratings are regularly updated, you can stay up to date with the value these loans offer even as interest rates and the mortgage market changes. You can also keep track of the top-rated home loans in different categories on RateCity’s Home Loan Leaderboards, with some of the top-rated choices becoming eligible for RateCity Gold Awards.
(Rankings are correct at the time of publishing. Please note lenders may trade places on the list as interest rates and fees change and RateCity’s tracker reflects these movements.)
Some of the top-rated variable home loans
A home loan with a variable interest rate may offer improved flexibility around your repayments, thanks to features such as extra repayments, an offset account and a redraw facility. But keep in mind that variable rates may change if the RBA chooses to hike the cash rate, or if your lender chooses to raise their own rates out of cycle, and not every lender offers extra features with their home loan.
Some of the top-rated fixed home loans
Selecting a fixed rate home loan could potentially help to insulate you from the risk of potential future rate rises, whether from the RBA hiking the cash rate (which could happen if inflation does not fall as fast as the RBA wants) or your lender raising their own variable interest rates out of cycle.
That said, keep in mind that economists from Australia’s big banks are forecasting that the RBA could start cutting the cash rate as soon as mid-2024, and keep cutting until late 2025, meaning you could potentially miss out on some savings if you’re locked into a fixed rate.
Some of the top-rated home loans from new lenders
While large and small banks look after a significant percentage of Australia’s home loan market, there are new competitors regularly rising to challenge them. Some of these specialised mortgage lenders may have special offers available, such as discounted interest rates or bonus reward points. Before you apply, consider the value offered by these features and whether one of these loans may be the best choice for your financial situation.
Compare home loans in Australia
Product database updated 20 May, 2024
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