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Some of the best home loans in December 2021

Some of the best home loans in December 2021

While a lot of Australians are slowing down and taking a break over the holidays, nothing completely stops the Australian property market. Some buyers and sellers rush to finalise sales before the year’s end, while others use the holidays as a chance to organise deals with less competition.

Whether you’re a first home buyer or an investor who’s refinancing, it’s important to consider some of the best home loan options on RateCity, to work out which ones may best suit your needs. RateCity’s Leaderboards rank home loans in different categories by their Real Time Ratings™, which combine the cost and flexibility of each loan to better indicate their overall value.

Some of the best five-year fixed home loans

Earlier in 2021, fixed interest rates were falling to record lows. As we reach the end of 2021, fixed rates are increasing as the major banks switch to competing over variable interest rates. While you can no longer find fixed interest rates under 2 per cent from the big banks, you may still be able to lock in a fixed rate for as long as five years.

Some of the best variable home loans

While the Reserve Bank of Australia (RBA) kept the national cash rate on hold in its December meeting, just as it has for over a year, that hasn’t stopped many mortgage lenders from cutting their variable interest rates out of cycle. Applying for a low rate variable home loan may allow you to benefit from low interest charges, though it’s worth being mindful that your home loan repayments may increases in the years to come if rates start to rise.

Some of the best small deposit home loans

Interest rates weren’t just on the low side for home loans this year – Australian savers struggled to earn more than a small amount of interest from their savings accounts and term deposits. This has been one more challenge to overcome for borrowers trying to save up a deposit on their first home.

It’s still possible to apply for a home loan with a deposit as small as 5 pr cent, though the smaller your deposit, the more you may need to pay in Lender’s Mortgage Insurance (LMI). Alternatively, you may be able to apply for a home loan with the help of a guarantor.

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This article was reviewed by Personal Finance Editor Alex Ritchie before it was published as part of RateCity's Fact Check process.

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