Some of the best home loans for investors and refinancers in December 2022

As 2022 comes to a close, what can Australia look forward to in 2023? More rate rises may be on the cards, making it important for investors and refinancers to carefully compare mortgage offers before making any decisions.

Eight consecutive months of hikes from the Reserve Bank of Australia (RBA) has taken the national cash rate from its record low of 0.10 per cent in April 2022 to 3.10 per cent in December 2022; the highest level in over a decade.

These hikes, among other economic factors, may be a contributor to falling property values, easing household spending, slowing home lending, and rising credit card debt. Given higher rates and costs of living, it’s important for Australian property owners to consider the overall value offered by their mortgage, and not just the cost. 

RateCity’s Real Time Ratings™ combine the cost and flexibility of different home loans into a single simple star rating that’s updated daily, so you can get a more accurate idea of the value offered by different home loans. RateCity’s Home Loan Leaderboards rank mortgage offers in different categories by their Real Time Ratings™ to further simplify your mortgage comparison.

Some of the best refinance home loans

Many Australians are likely to be feeling the pressure of multiple rate rises. RateCity research shows that a borrower on an average variable interest rate with a $500,000 loan with 25 years remaining may be paying $834 more per month in December for their mortgage than they were in April 2022.

However, RateCity research also shows that if someone with a $500,000 debt today and 25 years remaining on their loan refinanced from the average variable rate to one of the lowest in the market, they could potentially save up to $19,451 in the next three years.

Some of the best investor 5-year fixed interest only loans

Economists from some of Australia’s big banks are forecasting more rate rises in 2023, before the RBA may choose to pause hiking the cash rate. That said, the RBA Board has made it clear that it is “not on a pre-set course”, and that its future decisions will be guided by incoming data and whether the inflation rate falls into its target band of between 2 and 3 per cent.

Some investors may be looking for a little more stability around their mortgage repayments. It is possible to lock in a fixed interest rate for up to five years and pay just the interest charges to help keep your cash flow more manageable. Of course, because you won’t be lowering your loan principal during this time, you may end up paying more in interest charges on the property over the long term.

Some of the best green home loans

Refinancing to a green home loan could help a homeowner to finance eco-friendly renovations to their property that could help to retain or even grow its value in the future. Additionally, some green home upgrades could help to improve a home’s energy efficiency and potentially save money on future energy bills.

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