RateCity.com.au

Chance to Win a Million is Now Closed

Congratulations, Julia S. Whilst not winning the major prize Julia still walked away with $5000!

The contest is over, but you could still obtain a $100 Gift Card

Home Loan Rate Promise

How it works

Check your home loan rate by entering your details below. If we can't find you a better rate, you will score a $100 Gift Voucher*. That's our promise to you.

Check your home loan rate to see how much you could save

Enter Loan Details:

Loan amount

$

Interest rate

%

Property type

Loan type

Personal Details:

First name

Last name

Phone

+61

We use this information to help us find home loans with lower interest rates that may be suitable for you, and to calculate how much you could save by switching. See terms & conditions

icon moneybag^Terms & Conditions - RateCity chance to win $1 million promotion
  1. Information on how to enter and the prize form part of these Terms and Conditions. Participation in this promotion is deemed acceptance of these Terms and Conditions.
  1. Entry is only open to Australian residents, aged 18 years or older.
  1. Employees (and their immediate families) of the Promoter and agencies associated with this promotion are ineligible to enter. Immediate family means any of the following: spouse, ex-spouse, de-facto spouse, child or step-child (whether natural or by adoption), parent, step-parent, grandparent, step-grandparent, uncle, aunt, niece, nephew, brother, sister, step-brother, step-sister or 1st cousin
  1. Entries into the promotion open on 24/05/2019 and close at 11:59PM AEST on 20/05/2020 (“Promotional Period”).
  1. To enter, individuals must enter via ratecity.com.au or the URL as advertised on the RateCity digital channels, input the requested details including full name and contact details, answer the relevant questions when prompted, and submit the fully completed entry form during the Promotional Period. Entrants warrant that by submitting an entry in this promotion, they are under no obligation to choose or apply for any financial product/s and/or services.
  1. Upon submitting a completed entry form in accordance with the above (“Initial Entry”), entrants will be given the opportunity to earn additional entries by referring their friends and family to the promotion. To refer a friend or family member, the entrant must share a unique URL (which will be provided to them after submitting their Initial Entry). Entrants can share their unique URL via email, Twitter and/or Facebook. Entrants will receive one (1) additional entry into the draw (“Additional Entry”) for each friend or family member, who used the Entrant’s unique URL to submit an entry into the promotion in accordance with clause 5 above.
  1. Multiple entries permitted, subject to the following: (a) only one Initial Entry is permitted per person; (b) only one (1) Additional Entry is permitted per referral that is actioned in accordance with clause 7 above; and (c) each entry must be submitted separately and in accordance with entry requirements.
  1. The Promoter reserves the right, at any time, to verify the validity of entries and entrants (including an entrant’s identity, age and place of residence) and reserves the right, in its sole discretion, to disqualify any individual who the Promoter has reason to believe has breached any of these Terms and Conditions, tampered with the entry process or engaged in any unlawful or other improper misconduct calculated to jeopardise fair and proper conduct of the promotion. Errors and omissions may be accepted at the Promoter's discretion. Failure by the Promoter to enforce any of its rights at any stage does not constitute a waiver of those rights. The Promoter's legal rights to recover damages or other compensation from such an offender are reserved.
  1. Incomplete or indecipherable entries will be deemed invalid.
  1. If there is a dispute as to the identity of an entrant, the Promoter reserves the right, in its sole discretion, to determine the identity of the entrant.
  1. The draw will take place at Loyalty, 11 Springfield Avenue Toorak VIC 3142 21/05/2020 at 1:00pm AEST, in the presence of an independent scrutineer. The Promoter may draw additional reserve entries and record them in order in case an invalid entry or ineligible entrant is drawn. The winner will be notified in writing within two business days of the draw and their name will be published online at ratecity.com.au from 22/05/2020.
  1. The Promoter’s decision is final and no correspondence will be entered into.
  1. The first valid entry drawn will win that entrant (“Participant”) the opportunity to play a contingency game (“the Game”) for the chance to win $1,000,000.
  1. The Game will take place at RateCity, Level 3, Suite 3.02, 52 Alfred Street Milsons Point NSW 2061 on 28/05/2020 at 1:00pm AEST in the presence of a scrutineer. Any and all costs associated with attending the Game are the sole responsibility of the Participant. If the Participant cannot attend the Game, the Participant may participate in the Game via telephone whereby they will select a number between 1 and 200 (inclusive) and a representative of the Promoter will select the game piece bearing that number on their behalf; or the Participant may appoint a proxy over 18 years of age to play the Game on his/her behalf provided the Participant gives the Promoter written, signed notice to that effect before the start of the Game.  In the event that the Promoter has not been able to contact the Participant before the start of the Game, a representative of the Promoter will play the Game on the Participant’s behalf. 
  1. There will be 200 numbered game pieces on display at the start of the Game. One (1) game piece will contain a promotional message representing $1,000,000 and 199 game pieces will each contain a promotional message representing $5,000.  The Participant/proxy/representative (“Attendee”) must choose only one (1) game piece without touching, handling or interfering in any way with any of the other game pieces on display.  If the Attendee is found to have breached this condition, he/she will be disqualified.  If the Attendee selects the game piece containing the promotional message representing $1,000,000, then, subject to verification by the judges, the drawn Participant will win $1,000,000.  If the Attendee selects a game piece containing a promotional message representing $5,000, then the $1,000,000 prize will not be given away and, subject to verification by the judges, the drawn Participant will win $5,000 cash. Prize will be awarded by way of Electronic Funds Transfer (EFT) providing the Participants bank details are provided. Prize will be awarded within 28 days of the Game.
  1. The drawn Participant’s odds of winning the $1,000,000 prize are 1 in 200. The odds of being drawn as a Participant may be significantly higher than the odds of the drawn Participant winning the major prize and will depend upon the number of entries received.
  1. Subject to the unclaimed prize draw clause, if for any reason the winner does not take the prize by the time stipulated by the Promoter, then the prize will be forfeited.
  1. Total prize pool value is up to $1,000,000. The prize is not transferable or exchangeable. 
  1. A draw for the prize if unclaimed may take place on 21/08/2020 at the same time and place as the original draw, subject to any directions from a regulatory authority. The winner (if one is required) will be notified in writing within two business days of the draw and their name will be published online at ratecity.com.au from 24/08/2020. For clarity, any prize awarded in the unclaimed prize draw will be the same prize that was awarded as a result of the Game and was, for any reason, unclaimed by the Participant.
  1. Entrants consent to the Promoter using their name, likeness, image and/or voice in the event they are a winner (including photograph, film and/or recording of the same) in any media for an unlimited period without remuneration for the purpose of promoting this promotion (including any outcome), and promoting any products manufactured, distributed and/or supplied by the Promoter.
  1. If this promotion is interfered with in any way or is not capable of being conducted as reasonably anticipated due to any reason beyond the reasonable control of the Promoter, including but not limited to technical difficulties, unauthorised intervention or fraud, the Promoter reserves the right, in its sole discretion, to the fullest extent permitted by law: (a) to disqualify any entrant; or (b) subject to any written directions from a regulatory authority, to modify, suspend, terminate or cancel the promotion, as appropriate.
  1. Any cost associated with accessing the promotional website is the entrant’s responsibility and is dependent on the Internet service provider used.
  1. Nothing in these Terms and Conditions limits, excludes or modifies or purports to limit, exclude or modify the statutory consumer guarantees as provided under the Competition and Consumer Act, as well as any other implied warranties under the ASIC Act or similar consumer protection laws in the States and Territories of Australia (“Non-Excludable Guarantees”). Except for any liability that cannot by law be excluded, including the Non-Excludable Guarantees, the Promoter (including its respective officers, employees and agents) excludes all liability (including negligence), for any personal injury; or any loss or damage (including loss of opportunity); whether direct, indirect, special or consequential, arising in any way out of the promotion.
  1. Except for any liability that cannot by law be excluded, including the Non-Excludable Guarantees, the Promoter (including its respective officers, employees and agents) is not responsible for and excludes all liability (including negligence), for any personal injury; or any loss or damage (including loss of opportunity); whether direct, indirect, special or consequential, arising in any way out of: (a) any technical difficulties or equipment malfunction (whether or not under the Promoter’s control); (b) any theft, unauthorised access or third party interference; (c) any entry or prize claim that is late, lost, altered, damaged or misdirected (whether or not after their receipt by the Promoter) due to any reason beyond the reasonable control of the Promoter; (d) any variation in prize value to that stated in these Terms and Conditions; (e) if the Game is delayed, postponed or cancelled for any reason beyond the reasonable control of the Promoter; (f) any tax liability incurred by a winner or entrant; or (g) use of the prize.
  1. As a condition of accepting the prize, the winner must sign any legal documentation as (and in the form) required by the Promoter and/or prize suppliers in their absolute discretion, including but not limited to a legal release and indemnity form.
  1. The Promoter collects personal information ("PI") in order to conduct the promotion and may, for this purpose, disclose such PI to third parties, including but not limited to agents, contractors, service providers, prize suppliers and, as required, to Australian regulatory authorities. Entry is conditional on providing this PI. The Promoter will also use and handle PI as set out in its Privacy Policy, which can be viewed at https://www.ratecity.com.au/privacy-policy. In addition to any use that may be outlined in the Promoter’s Privacy Policy, the Promoter may, for an indefinite period, unless otherwise advised, use the PI for promotional, marketing, publicity, research and profiling purposes, including sending electronic messages or telephoning the entrant. The Privacy Policy also contains information about how entrants may opt out, access, update or correct their PI, how entrants may complain about a breach of the Australian Privacy Principles or any other applicable law and how those complaints will be dealt with. All entries become the property of the Promoter. The Promoter will not disclose PI to any entity outside of Australia.
  1. The Promoter is RateCity Pty Limited (ABN 12 122 743 542) of Level 3, Suite 3.02, 52 Alfred Street Milsons Point NSW 2061, telephone 1300 001 153.

NSW Permit No. LTPS/19/34793

ACT Permit No. TP19/03377

SA Permit No. T19/809 

Read all terms & conditions
icon moneybag*Terms & Conditions - RateCity Rate Guarantee
  1. Rate Guarantee - RateCity will find a lower interest rate, with one of the lenders we compare, than the interest rate on your current mortgage. If we cannot find a lower interest rate than your current mortgage rate, we will provide you with a $100 Mastercard gift card. The promise will be met where RateCity’s site displays an interest rate that is lower than your current interest rate, for an equivalent loan. If the site cannot display a rate lower than yours (on an equivalent loan), you will be invited to lodge a claim. The promise applies by matching the comparison rate on your existing mortgage to the comparison rate of the loans on the RateCity site.
  2. Comparison rate will only be beaten on loans available to the general public from lenders incorporated and licensed within Australia where the interest rate is advertised on the lender’s website for equivalent loans.
  3. RateCity reserves the right to determine, in its sole discretion whether your existing mortgage is an equivalent loan to the quotes you have obtained through our site. An equivalent loan will have comparable loan features (e.g. offset accounts, redraw available), identical or similar security, identical loan purpose, interest-only and the period to which it applies, and any introductory rates.
  4. Where you have a discounted rate on your home loan rate under a combination loan arrangement which requires you to have at least two loans to receive a discounted rate, the Rate Promise is applied to the interest rate calculated by averaging the rates on all loans in your combination loan.
  5. If you have a cheaper rate, you must provide evidence to us in the form of a letter from your lender or statement of account for your mortgage (no more than 3 months’ old) demonstrating the current comparison interest rate applicable to your mortgage.
  6. This offer is not available in conjunction with any other offer from RateCity, unless otherwise stated.
  7. This offer is only open to natural persons who are Australian residents who meet the following criteria:
    • a) Over 18 years of age;
    • b) Have a current single property home loan;
    • c) Are not in arrears on their home loan;
    • d) Have an outstanding home loan amount of $150,000 up to $2,000,000.
    • e) Have not packaged the home loan with a business loan or secured the loan through business relationships or any other preferential arrangement not available to the market at large e.g. a discounted offer available to members of a certain professional association or offered because of a separate business banking relationship;
    • f) Have a loan value to security ratio of less than 80%; and
    • g) Have had the current home loan for at least 90 days.
  8. Exclusions – This offer is not available where your existing mortgage is a discounted employment package, staff discount home loan, or any other kind of loan discounted for a specialised or defined group that is not available to the public at large.
  9. Where you make a successful claim, the Mastercard will be emailed to the email address you specify in your claim within 28 days after the end of the month in which you made your claim. RateCity accepts no responsibility for the Mastercard being intercepted fraudulently, misdelivered, or otherwise lost in transit.
  10. Where your mortgage has joint borrowers, you may make a claim in the name of both or either of you, but there is a limit of one claim in respect of the same mortgage. Where you make your claim in joint names, delivery of the Mastercard to one or either of you satisfies our obligations under these terms and conditions.
  11. RateCity reserves the right to withdraw this offer at any time for any reason. Upon RateCity deciding to withdraw this offer, which will be effected by the removal of these terms and conditions from the site, RateCity will honour all claims already submitted but will not accept any further claims.
Read all terms & conditions
faqFrequently Asked Questions

What happens to my home loan when interest rates rise?

If you are on a variable rate home loan, every so often your rate will be subject to increases and decreases. Rate changes are determined by your lender, not the Reserve Bank of Australia, however often when the RBA changes the cash rate, a number of banks will follow suit, at least to some extent. You can use RateCity cash rate to check how the latest interest rate change affected your mortgage interest rate.

When your rate rises, you will be required to pay your bank more each month in mortgage repayments. Similarly, if your interest rate is cut, then your monthly repayments will decrease. Your lender will notify you of what your new repayments will be, although you can do the calculations yourself, and compare other home loan rates using our mortgage calculator.

There is no way of conclusively predicting when interest rates will go up or down on home loans so if you prefer a more stable approach consider opting for a fixed rate loan.

What is a variable home loan?

A variable rate home loan is one where the interest rate can and will change over the course of your loan. The rate is determined by your lender, not the Reserve Bank of Australia, so while the cash rate might go down, your bank may decide not to follow suit, although they do broadly follow market conditions. One of the upsides of variable rates is that they are typically more flexible than their fixed rate counterparts which means that a lot of these products will let you make extra repayments and offer features such as offset accounts.

How much are repayments on a $250K mortgage?

The exact repayment amount for a $250,000 mortgage will be determined by several factors including your deposit size, interest rate and the type of loan. It is best to use a mortgage calculator to determine your actual repayment size.

For example, the monthly repayments on a $250,000 loan with a 5 per cent interest rate over 30 years will be $1342. For a loan of $300,000 on the same rate and loan term, the monthly repayments will be $1610 and for a $500,000 loan, the monthly repayments will be $2684.

What is a comparison rate?

The comparison rate is a more inclusive way of comparing home loans that factors in not only on the interest rate but also the majority of upfront and ongoing charges that add to the total cost of a home loan.

The rate is calculated using an industry-wide formula based on a $150,000 loan over a 25-year period and includes things like revert rates after an introductory or fixed rate period, application fees and monthly account keeping fees.

In Australia, all lenders are required by law to publish the comparison rate alongside their advertised rate so people can compare products easily.

Who has the best home loan?

Determining who has the ‘best’ home loan really does depend on your own personal circumstances and requirements. It may be tempting to judge a loan merely on the interest rate but there can be added value in the extras on offer, such as offset and redraw facilities, that aren’t available with all low rate loans.

To determine which loan is the best for you, think about whether you would prefer the consistency of a fixed loan or the flexibility and potential benefits of a variable loan. Then determine which features will be necessary throughout the life of your loan. Thirdly, consider how much you are willing to pay in fees for the loan you want. Once you find the perfect combination of these three elements you are on your way to determining the best loan for you. 

What is the difference between fixed, variable and split rates?

Fixed rate

A fixed rate home loan is a loan where the interest rate is set for a certain amount of time, usually between one and 15 years. The advantage of a fixed rate is that you know exactly how much your repayments will be for the duration of the fixed term. There are some disadvantages to fixing that you need to be aware of. Some products won’t let you make extra repayments, or offer tools such as an offset account to help you reduce your interest, while others will charge a significant break fee if you decide to terminate the loan before the fixed period finishes.

Variable rate

A variable rate home loan is one where the interest rate can and will change over the course of your loan. The rate is determined by your lender, not the Reserve Bank of Australia, so while the cash rate might go down, your bank may decide not to follow suit, although they do broadly follow market conditions. One of the upsides of variable rates is that they are typically more flexible than their fixed rate counterparts which means that a lot of these products will let you make extra repayments and offer features such as offset accounts.

Split rates home loans

A split loan lets you fix a portion of your loan, and leave the remainder on a variable rate so you get a bet each way on fixed and variable rates. A split loan is a good option for someone who wants the peace of mind that regular repayments can provide but still wants to retain some of the additional features variable loans typically provide such as an offset account. Of course, with most things in life, split loans are still a trade-off. If the variable rate goes down, for example, the lower interest rates will only apply to the section that you didn’t fix.

How do I refinance my home loan?

Refinancing your home loan can involve a bit of paperwork but if you are moving on to a lower rate, it can save you thousands of dollars in the long-run. The first step is finding another loan on the market that you think will save you money over time or offer features that your current loan does not have. Once you have selected a couple of loans you are interested in, compare them with your current loan to see if you will save money in the long term on interest rates and fees. Remember to factor in any break fees and set up fees when assessing the cost of switching.

Once you have decided on a new loan it is simply a matter of contacting your existing and future lender to get the new loan set up. Beware that some lenders will revert your loan back to a 25 or 30 year term when you refinance which may mean initial lower repayments but may cost you more in the long run.

What is the best interest rate for a mortgage?

The fastest way to find out what the lowest interest rates on the market are is to use a comparison website.

While a low interest rate is highly preferable, it is not the only factor that will determine whether a particular loan is right for you.

Loans with low interest rates can often include hidden catches, such as high fees or a period of low rates which jumps up after the introductory period has ended.

To work out the best value for money, have a look at a loan’s comparison rate and read the fine print to get across all the fees and charges that you could be theoretically charged over the life of the loan.

What is a fixed home loan?

A fixed rate home loan is a loan where the interest rate is set for a certain amount of time, usually between one and 15 years. The advantage of a fixed rate is that you know exactly how much your repayments will be for the duration of the fixed term. There are some disadvantages to fixing that you need to be aware of. Some products won’t let you make extra repayments, or offer tools such as an offset account to help you reduce your interest, while others will charge a significant break fee if you decide to terminate the loan before the fixed period finishes.

What is a standard variable rate (SVR)?

The standard variable rate (SVR) is the interest rate a lender applies to their standard home loan. It is a variable interest rate which is normally used as a benchmark from which they price their other variable rate home loan products.

A standard variable rate home loan typically includes most, if not all the features the lender has on offer, such as an offset account, but it often comes with a higher interest rate attached than their most ‘basic’ product on offer (usually referred to as their basic variable rate mortgage).

How common are low-deposit home loans?

Low-deposit home loans aren’t as common as they once were, because they’re regarded as relatively risky and the banking regulator (APRA) is trying to reduce risk from the mortgage market.

However, if you do your research, you’ll find there is still a fairly wide selection of banks, credit unions and non-bank lenders that offers low-deposit home loans.

How do I take out a low-deposit home loan?

If you want to take out a low-deposit home loan, it might be a good idea to consult a mortgage broker who can give you professional financial advice and organise the mortgage for you.

Another way to take out a low-deposit home loan is to do your own research with a comparison website like RateCity. Once you’ve identified your preferred mortgage, you can apply through RateCity or go direct to the lender.

How can I negotiate a better home loan rate?

Negotiating with your bank can seem like a daunting task but if you have been a loyal customer with plenty of equity built up then you hold more power than you think. It’s highly likely your current lender won’t want to let your business go without a fight so if you do your research and find out what other banks are offering new customers you might be able to negotiate a reduction in interest rate, or a reduction in fees with your existing lender.

What is an ombudsman?

An complaints officer – previously referred to as an ombudsman -looks at formal complaints from customers about their credit providers, and helps to find a fair and independent solution to these problems.

These services are handled by the Australian Financial Complaints Authority, a non-profit government organisation that addresses and resolves financial disputes between customers and financial service providers.

How much of the RBA rate cut do lenders pass on to borrowers?

When the Reserve Bank of Australia cuts its official cash rate, there is no guarantee lenders will then pass that cut on to lenders by way of lower interest rates. 

Sometimes lenders pass on the cut in full, sometimes they partially pass on the cut, sometimes they don’t at all. When they don’t, they often defend the decision by saying they need to balance the needs of their shareholders with the needs of their borrowers. 

As the attached graph shows, more recent cuts have seen less lenders passing on the full RBA interest rate cut; the average lender was more likely to pass on about two-thirds of the 25 basis points cut to its borrowers.  image002

How personalised is my rating?

Real Time Ratings produces instant scores for loan products and updates them based what you tell us about what you’re looking for in a loan. In that sense, we believe the ratings are as close as you get to personalised; the more you tell us, the more we customise to ratings to your needs. Some borrowers value flexibility, while others want the lowest cost loan. Your preferences will be reflected in the rating. 

We also take a shorter term, more realistic view of how long borrowers hold onto their loan, which gives you a better idea about the true borrowing costs. We take your loan details and calculate how much each of the relevent loans would cost you on average each month over the next five years. We assess the overall flexibility of each loan and give you an easy indication of which ones are likely to adjust to your needs over time.