September is the traditional start of the Spring Selling Season in Australia’s real estate markets. While 2020 remains a challenging year, with economic recession affecting both property buyers and sellers, banks and other mortgage lenders are continuing to slash home loan interest rates to new lows.
If you’ve been waiting for a chance to buy your first home, are looking to upsize or downsize to a house that better suits you and your family, or are ready to start building your property investment empire, RateCity is here to help with some of the top-rated home loan deals, as ranked by our Real Time Ratings™ system.
(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
Whether you’re wanting to buy your first home or investment property, or refinance an existing mortgage, there are many more variable rate home loan options available in the market than you may expect. Even if you’re not familiar with all the lenders in question, their low interest rates, flexible features, and special offers (including cashbacks) often speak for themselves.
Best small deposit home loans
Interest rates aren’t just down for home loans, but for savings accounts and term deposits too. This can make saving up a home loan deposit that little bit harder, as you won’t be able to earn as much interest on your savings or grow your wealth as quickly.
This is where it could be worth comparing some small deposit home loan options, which may let you apply for a mortgage with a deposit as small as 5 per cent of the property value. Just keep in mind that you may also need to pay for Lender’s Mortgage Insurance (LMI) or get some help from a guarantor to successfully apply for a low-deposit home loan.
Best home loans from large banks
Some of the biggest financial institutions in Australia and around the world are presently offering discounted interest rates on home loans, as they attempt to secure new mortgage customers. But it’s also important to consider what features and benefits are being offered by different mortgage lenders, and whether they can offer you additional value.
Big names such as Suncorp and the Commonwealth Bank are offering thousands of dollars in cashback for eligible refinancers, and HSBC’s offers include discounted variable rates, no ongoing fees, an HSBC Relationship Manager to look after you and a complimentary Feng Shui report on your property!
Best home loans from new lenders
It’s not just the big banks that are slashing interest rates and offering creative features and benefits. Smaller mortgage lenders, including digital only online lenders and app-based neobanks, are competing hard with the majors for your business.
For example, Athena is offering the AcceleRates package, where the more of your property you pay off, the lower your interest rate will drop. And for a limited time only, 86 400 is offering $2000 cashback for low-LVR borrowers.
Remember to always compare different home loan options and consider contacting a mortgage broker or financial counsellor for advice before making any final decisions, as the home loan with the lowest interest rate may not be the mortgage that best suits your personal financial needs.