After a year of ups and downs, Australia’s home loan marketplace is looking a lot different. Following emergency cash rate cuts from the Reserve Bank of Australia (RBA) and an economic recession, many lenders have thoroughly slashed their home loan interest rates.
As a result, both investors and owner occupiers have been spurred into action, with borrowing activity and house prices increasing rapidly in recent months thanks to fear of missing out (FOMO) on these low rates.
It’s important to remember that a low interest rate isn’t the only thing to look for when choosing a home loan, and that different types of home loans may be better suited to different types of borrowers.
RateCity’s Home Loan Leaderboards have compiled some of the best home loans for different types of borrowers, ranking them based on Real Time Ratings™, which combine the cost and flexibility of each mortgage offer.
There is no single best home loan as everyone’s needs are different. 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.
Best variable home loans over $1 million
With house prices on the increase in several of Australia’s capital cities, borrowers may be looking for bigger mortgages to afford their dream homes.
If this includes you, there are a range of options available for larger home loans:
Best refinance home loans
If you already own your home, but are interested in getting a mortgage deal that’s better suited to your financial needs, there may be options available to you. The level of equity in your property and other factors may affect you decision.
Best 5-year fixed home loans
If you reckon you can afford home loan repayments at one on the relatively low rates that are currently available, it may be possible to lock in one of these rates for as long as five years. This could keep your repayments consistent, for simpler budgeting, even if rates were to start rising soon. Just keep in mind that once the fixed rate term expires and you revert to the lender’s variable rate, you’ll need to check you can still afford the repayments.
Best interest only investor home loans
Much like owner occupiers, property investors may be able to lock in a low interest rate for as long as five years, to help ensure they keep making the same repayments on their mortgage even if variable rates were to start rising.
An extra feature that’s popular with investors is the option to pay only the interest on the loan for up to five years, to further minimise the cost of monthly repayments. Of course, it’s important to keep in mind that paying interest only today could make the loan take longer to pay off, costing more in total interest charges in the longer term.