At the time of writing, home loan interest rates have been sitting at low levels since the RBA’s April 2009 decision to drop the cash rate to 3.00%. But while the central bank sets the interest rate, not all banks and lenders decide to pass the rate cut onto consumers.
While some borrowers see low home loan interest rates as repayment relief, others are making full use of low rates to make additional repayments on their mortgage. Additional repayments can help to trim down the amount of interest paid and the also shortens the term of your mortgage. Any lump sum payments will have the same positive effects. Changing your monthly instalments to fortnightly or weekly will also aid in reducing the interest on your loan.
The table to the right shows some of today’s best home loan interest rates. To compare interest rates on a range of home loans use the RateCity home loan comparison tool and mortgage repayment calculator to crunch the numbers.