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Australia's best home loans for May 2020

Australia's best home loans for May 2020

Many of Australia’s banks recently offered to put home loan payments on hold while their customers dealt with the coronavirus pandemic. Many of these mortgage holidays could be taken for up to six months, often with a review at the three-month mark.

However, with social distancing restrictions starting to be relaxed in selected areas, some lenders may be eager to get the mortgage market moving once again. For example, NAB has started contacting its customers about ending their mortgage holidays early, which could potentially help to minimise the long-term cost of capitalised interest charges.

If you’re on a mortgage holiday that may soon be coming to an end, or have been putting off your dreams of home ownership, it could be worth looking at the home loan market to see what offers and options are available. There are many lenders eager for your business, whether you’re buying your first home or refinancing. Depending on your situation, you may be able to enjoy low interest rates and fees, access to flexible home loan features, or even cashback deals and other special offers.

To get you started, here’s a selection of leading home loans, as ranked by RateCity’s Real Time Ratings™ system in May 2020:

(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 rate home loans 

While many of Australia’s leading banks kept their variable interest rates on hold following the RBA’s last emergency cut to the nation’s cash rate, that doesn’t mean there aren’t plenty of low-interest home loans to consider. It’s also important to think about the flexibility of a home loan’s features, and not just its low rate.

Company
Product

Well Balanced

Real Time Rating™

4.43

/ 5

Winner of Best Variable Home Loan, RateCity Gold Awards 2022

Interest Rate

1.85

% p.a

Variable

Comparison Rate*

1.88

% p.a

Repayment

$1,250

monthly

Real Time Rating™

4.43

/ 5
Go to site

Winner of Best Variable Home Loan, RateCity Gold Awards 2022

Company
Product

Standard Variable Home Loan

Real Time Rating™

4.85

/ 5

Winner of Best Home Loans Over 1m, Best Variable Home Loan, RateCity Gold Awards 2022

Interest Rate

1.87

% p.a

Variable

Comparison Rate*

1.87

% p.a

Repayment

$1,253

monthly

Real Time Rating™

4.85

/ 5
Go to site

Winner of Best Home Loans Over 1m, Best Variable Home Loan, RateCity Gold Awards 2022

Company
Product

Freedom Variable

Real Time Rating™

3.98

/ 5

Winner of Best Home Loans Over 1m, Best Variable Home Loan, RateCity Gold Awards 2022

Interest Rate

2.19

% p.a

Variable

Comparison Rate*

2.23

% p.a

Repayment

$1,299

monthly

Real Time Rating™

3.98

/ 5
Go to site

Winner of Best Home Loans Over 1m, Best Variable Home Loan, RateCity Gold Awards 2022

Company
Product

Star Classic Owner Occupied

Real Time Rating™

3.78

/ 5
Interest Rate

2.24

% p.a

Variable

Comparison Rate*

2.27

% p.a

Repayment

$1,307

monthly

Real Time Rating™

3.78

/ 5
Go to site
Company
Product

First Home Loan

Real Time Rating™

1.86

/ 5
Interest Rate

3.19

% p.a

Variable

Comparison Rate*

3.24

% p.a

Repayment

$798

monthly

Real Time Rating™

1.86

/ 5
Go to site

Read more...

Best home loans from large banks

Australia’s biggest banks may be able to offer you more than just a home loan. Several home loan package deals let you bundle your mortgage with other financial services, and enjoy discounted fees and improved overall value.

Company
Product

Basic Home Loan

Real Time Rating™

3.39

/ 5
Interest Rate

2.34

% p.a

Variable

Comparison Rate*

2.36

% p.a

Repayment

$1,322

monthly

Real Time Rating™

3.39

/ 5
Go to site

special

Establishment fee waived on Basic Home Loans of $150k+
Company
Product

Extra Home Loan

Real Time Rating™

1.97

/ 5
Interest Rate

3.24

% p.a

Variable

Comparison Rate*

3.25

% p.a

Repayment

$1,460

monthly

Real Time Rating™

1.97

/ 5
Go to site

Cashback

$2,000 cashback when you switch your home loan to us. ~ Ends in 7 months
Company
Product

Base Variable Rate Home Loan

Real Time Rating™

3.25

/ 5
Interest Rate

2.44

% p.a

Variable

Comparison Rate*

2.48

% p.a

Repayment

$1,337

monthly

Real Time Rating™

3.25

/ 5
Go to site

Cashback

$2,000 cashback when you refinance a loan of $250,000 or more
Company
Product

Home Value Loan (Owner Occupied, Principal & Interest)

Real Time Rating™

3.59

/ 5

Winner of Best Refinance Home Loan, RateCity Gold Awards 2022

Interest Rate

2.27

% p.a

Variable

Comparison Rate*

2.28

% p.a

Repayment

$1,311

monthly

Real Time Rating™

3.59

/ 5
Go to site

special

Get a low variable interest rate loan with no ongoing fees.

Winner of Best Refinance Home Loan, RateCity Gold Awards 2022

Read more...

Best home loans from new lenders

There are plenty of challenger lenders that offer competitive home loan alternatives to the big banks, from online-only neobanks to local credit unions and mutuals.

Company
Product

Owner Occupier Accelerates - Liberate (Principal and Interest)

Real Time Rating™

3.67

/ 5
Interest Rate

2.24

% p.a

Variable

Comparison Rate*

2.18

% p.a

Repayment

$1,307

monthly

Real Time Rating™

3.67

/ 5
Go to site
Company
Product

Own Home Loan Variable

Real Time Rating™

3.48

/ 5
Interest Rate

2.24

% p.a

Variable

Comparison Rate*

2.53

% p.a

Repayment

$1,307

monthly

Real Time Rating™

3.48

/ 5
Go to site

Read more...

Where can I find the best home loans every day?

One simple way to keep track of leading home loans is to keep an eye on RateCity’s Home Loan Leaderboards, which list the top-rated home loans in different categories every day, according to our Real Time Ratings™ system.

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This article was reviewed by Finance Writer Alison Cheung before it was published as part of RateCity's Fact Check process.

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