Despite the Reserve Bank of Australia (RBA) having not lifted the national cash rate in over a decade, many mortgage lenders are aggressively competing for business from borrowers. But while many borrowers will go looking for the home loans with the lowest interest rates, it’s important to also consider which home loans offer the fees, features and other benefits that could offer greater value for your financial situation.
To help you save time and effort, you can check RateCity’s Home Loan Leaderboards, which rank home loan deals in different categories based on their Real Time Ratings™. These star ratings combine the cost and flexibility of each loan and are updated daily, so you can estimate the overall value of different mortgages at a glance.
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 best packaged home loans
Getting a home loan is a major financial commitment, whether you’re applying for your first mortgage or you’re refinancing. It’s important to look at which mortgage lenders can offer you the most overall value given your financial situation, not just which bank has the lowest interest rates.
Some lenders offer extra value to home buyers by bundling their mortgage deals with a credit card and/or a bank account, with discounted rates and/or fees on the whole package.
Some of the best small deposit home loans
It’s no secret that one of the most significant challenges for many borrowers is saving up a deposit. This is often especially true for first home buyers, who may find saving 20 per cent of a property’s price an insurmountable obstacle while still paying rent and other everyday expenses.
Several lenders offer mortgage options where you can apply with a deposit as small as 5 per cent of the property value, which may be much simpler to put together from your savings plus first home owner grants and similar incentives. Of course, you’ll also have to account for the cost of Lender’s Mortgage Insurance (LMI), which tends to cost more for low deposit home loans.
Some of the best 3 year fixed rates
Some of the lowest home loan interest rates currently being offered at present are for fixed rate deals lasting between 1 and 3 years. This could allow you to lock in some affordable mortgage repayments for a few years, so you can enjoy some simpler budgeting.
Keep in mind though that these fixed rate deals would be due to revert to a variable rate around the same time that some experts are forecasting that the RBA may increase the nation’s cash rate. This could potentially leader to higher mortgage repayments, so consider making preparations ahead of time.