Following the Reserve Bank of Australia’s (RBA’s) decision to hike the national cash rate by 50 basis points at its August 2022 meeting, many owner occupiers and aspiring homeowners may be feeling concerned for their futures.
Some economists are predicting that rising rates may lead to property prices starting to fall in some areas, which may sound like good news for first home buyers. However, with higher rates making home loan repayments less affordable, it may be harder to get larger home loans approved.
Falling property prices in some areas could lead to current owner occupiers seeing the value of their property decline, effectively reducing their equity and making it more challenging to refinance to a lower rate.
At times like these, it’s important to consider looking at more than just the interest rate on a home loan, and to also look at the features that could help you manage your repayments. RateCity’s Home Loan Leaderboards rank home loans in different categories by their Real Time Ratings™, which combine their cost and flexibility into a simple star rating that’s updated daily.
Some of the best packaged home loans
Depending on your financial situation, sometimes bundling a home loan with other financial products and services, such as a transaction account and a credit card, may offer greater value than each of these individual offers.
That said, it’s worth comparing the cost of the package fee to the value being offered and to consider whether these products are best suited to your financial situation or if there are even more useful alternatives available.
Company | Product Ultimate Home Loan Package Real Time Rating™ | Interest Rate  3.39 % p.a Variable | Comparison Rate* 3.61 % p.a | Repayment $848 monthly | Real Time Rating™ | Go to site | |
Company | Product Premium Package Home Loan Real Time Rating™ | Interest Rate 3.04 % p.a Variable | Comparison Rate* 3.37 % p.a | Repayment $1,429 monthly | Real Time Rating™ | Go to site | |
Company | Product Expect More Home Loan Package Real Time Rating™ | Interest Rate 3.19 % p.a Variable | Comparison Rate* 3.21 % p.a | Repayment $1,452 monthly | Real Time Rating™ | Go to site | |
Company | Product Home Loan Package Real Time Rating™ | Interest Rate 3.34 % p.a Variable | Comparison Rate* 3.75 % p.a | Repayment $1,476 monthly | Real Time Rating™ | Go to site | special $5,000 First Home Buyers Grant on eligible loans |
Some of the best small deposit home loans
Even with prices falling, first home buyers may need to borrow a large sum of money to afford to purchase property in some areas. And unless you’ve already saved up a significant sum, you may find yourself in the market for a home loan that will let you buy with a 10 or 5 per cent deposit.
Keep in mind that this may require budgeting for Lender’s Mortgage Insurance (LMI) – the lower your deposit, the more you may pay in LMI.
Company | Product Low Deposit Home Loan Real Time Rating™ | Interest Rate 3.49 % p.a Variable | Comparison Rate* 3.90 % p.a | Repayment $1,500 monthly | Real Time Rating™ | Go to site | |
Company | Product Basic Variable Rate Home Loan Real Time Rating™ | Interest Rate 3.04 % p.a Variable | Comparison Rate* 3.10 % p.a | Repayment $1,429 monthly | Real Time Rating™ | Go to site | |
Company | Product Your Way Basic Variable Home Loan Real Time Rating™ | Interest Rate 3.14 % p.a Variable | Comparison Rate* 3.18 % p.a | Repayment $1,445 monthly | Real Time Rating™ | Go to site | |
Company | Product Your Way Basic Variable Home Loan Real Time Rating™ | Interest Rate 3.14 % p.a Variable | Comparison Rate* 3.18 % p.a | Repayment $1,445 monthly | Real Time Rating™ | Go to site |
Some of the best 2-year fixed rate home loans
Borrowers looking to avoid variable rate hikes by switching to a fixed interest rate may have already missed out on the extra-low rates that were previously available. But it may still be possible to apply for a fixed rate loan that also offers flexible options such as offset accounts, extra repayments and a redraw facility, which may offer options for managing your repayments that could provide extra value.
Company | Product Fixed Rate Home Loan Real Time Rating™ | Interest Rate 5.39 % p.a Fixed - 2 years | Comparison Rate* 3.23 % p.a | Repayment $1,823 monthly | Real Time Rating™ | Go to site | |
Company | Product FlexiDiscount Home Loan Real Time Rating™ | Interest Rate 5.49 % p.a Fixed - 2 years | Comparison Rate* 3.70 % p.a | Repayment $1,840 monthly | Real Time Rating™ | Go to site | |
Company | Product Home Owners Dream Fixed Cash Back Real Time Rating™ | Interest Rate 5.69 % p.a Fixed - 2 years | Comparison Rate* 3.36 % p.a | Repayment $1,876 monthly | Real Time Rating™ | Go to site | |
Company | Product Police Value Home Loan Real Time Rating™ | Interest Rate 4.54 % p.a Fixed - 2 years | Comparison Rate* 4.09 % p.a | Repayment $1,674 monthly | Real Time Rating™ | Go to site | Cashback Get up to $4,000 cashback when you refinance ~ Ends in about 2 months |
Company | Product AMP Bank Professional Package Home Loan Fixed (Principal and Interest) Real Time Rating™ | Interest Rate 4.99 % p.a Fixed - 2 years | Comparison Rate* 4.19 % p.a | Repayment $1,752 monthly | Real Time Rating™ | Go to site | Cashback Receive up to $5,000 cashback for a limited time available for new refinance home loan applications ~ Ends in 23 days |
