Finding information about current Australian home loans takes time and for some, it’s a matter of knowing where to start. The important thing to remember is, the more you read, research and gather information the better equipped you will be and the more money you could save when you finally put pen to mortgage contract.
At RateCity we have tried to make the process easier by providing all the information you need on our home loans hub. This will allow you to compare home loan interest rates from hundreds of lenders all at the one site. You’ll find home loan rates from the major banks, smaller and non-banks as well as rates from building societies and credit unions.
So whether you’re in the market for a loan for your first home, next home or simply want to see if refinancing could be a good option for you, we’ve got you covered.
Why compare rates?
Comparing home loan interest rates might seem pointless if you’re only going to save 50 or 100 basis points by shopping around. But in reality, a 50 basis point reduction could cut tens of thousands of dollars off the average-sized loan.
For a $300,000 home loan, for example, an interest rate of 6 percent will set you back $1799 per month and you’ll end up paying $347,510 in interest over 30 years. By reducing the interest rate to 5.5 percent (and assuming all variables remain steady), that’s a saving of $34,299 in interest paid over the term of the loan, freeing up $96 each month. Clearly, no small change!
For many homeowners, $96 extra each month could go a long way towards paying for everyday living. But for those able to save that money, stand to be well in front on their home loan. Reinvesting it into your home loan, for example could save this borrower $44,782 and reduce a 30 year home loan by almost 4 years!
Still want to know more?
Of course the interest rate shouldn’t be your only concern when it comes to comparing home loans. Fees and charges should also be factored in when weighing up the competition. Lenders are now required, by law, to provide a “comparison rate” for a home loan – which has some ongoing fees factored into the cost. Also think about the types of loan features that will be most useful to you – such as an offset account or redraw facility, for instance.
For further home loan information, tips or to simply compare home loan interest rates start browsing the site now. Consider trying out our home loans calculator, read through our step-by-step home loans guide, or learn about what’s happening in the mortgage market with news and articles or research from our database.