The Australian Bureau of Statistics (ABS) recently found that Australian property prices fell in every capital city except Canberra over the June 2020 quarter. The number of residential property transactions also fell during this time, due to the effects of COVID-19 on property markets.
Even if your home-buying plans have changed, falling prices could make it easier for some first home buyers to take the next step towards becoming home owners. Current owner occupiers may also be able to take advantage of interest rates being recently slashed to new record lows to refinance their home loans.
(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 interest rates for owner occupiers
Large and small mortgage lenders have continued to slash variable interest rates in recent weeks, with Reduce Home Loans setting a new record low of just 1.89 per cent (comparison rate 1.92 per cent). Of course, it’s important to remember that you’ll need to hold equity or a deposit of 40 per cent to qualify for this loan, which has a maximum amount of $850,000.
Other variable rate home loan options may not have rates quite this low, but they may have terms, conditions, features and benefits that better suit your own personal financial situation.
Best fixed interest rates for owner occupiers
With rates on the low side, it’s little wonder that many owner occupiers are looking to lock in a fixed rate at this time. Demand for fixed rates has been increasing, according to a recent RateCity survey and responses from bank spokespeople.
As well as locking in a lower interest rate, fixed rate borrowers may also be able to benefit from special offers, such as cashback deals on the following five-year fixed rate home loans:
Best interest rates for owner occupier from the large banks
If you’re looking at refinancing your home loan, it could be worth considering all of your available options, including the major banks. A recent report found that in New South Wales, more than two thirds of refinancing activity was dominated by the big four banks in August 2020.
Major banks may be in a position to not only offer an affordable home loan rate, but also cashback deals and other introductory offers, which may appeal to certain owner occupiers.
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.