While first home buyers have been active in Australian property markets over the past few months, thanks in part to low interest rates, recent figures have shown that refinancers and investors are starting to take their place. This is understood to be partially due to property prices in some popular areas rising beyond what’s affordable for many first home buyers.
Refinancers and investors suffering fear of missing out (FOMO) on low interest rates should remember that the interest rate is just one of many aspects of a mortgage to consider before signing on the dotted line. One fast way to compare the overall value of different home loans is to look at their Real Time Ratings™, which combine the cost and flexibility of a loan into a single, simple star rating.
Here are some of the top-rated home loans in different categories, as ranked by our RateCity Leaderboards:
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.
Some of the best refinance home loans
Borrowers who have equity available in the property may be eligible for mortgage deals offering affordable rates and fees, and/or flexible features and benefits. If your LVR is around 60 or 70 per cent, there may be home loans worth considering if you’re interested in lowering your mortgage payments, paying off your property sooner, or accessing flexible mortgage features and benefits.
Some of the best package home loans
Low interest rates are just one of the incentives that some banks and other mortgage lenders offer borrowers to attract new business. Some banks and lenders offer to package together a home loan, bank account and a credit card or other financial products, all with discounted fees.
Some banks also offer cashback deals on their home loan packages, especially for those looking to refinance. It’s always important to compare the available options and carefully consider the value a mortgage package may offer given your financial situation.
Some of the best fixed rate loans for investors
Investors seeking to lock in a low rate have a range of potential options to choose from. Several banks and mortgage lenders have lowered interest rates on loans with fixed terms of three years or less in recent months, which could prove useful depending on your financial situation.
Of course, some lenders have begun raising fixed interest rates for terms of four years and more, as banks prepare for a forecast cash rate increase from the RBA in 2024. Investors can still lock in their interest rate for a longer term if that suits their budget, and may be able to also benefit from features such as cashback.
Some of the best 3-year fixed investor home loans
Some of the best 5-year fixed investor home loans