Recent figures from the Australian Bureau of Statistics (ABS) have shown that while the number of new home loans has started to fall, refinancing is on the rise, putting pressure on Australia’s banks to remain competitive.
Some of the bigger banks have started slashing fixed and variable interest rates to some of the lowest seen on record. Their smaller competitors have followed suit, including new lenders in the banking space.
But it’s important to remember that a home loan is more than just its interest rate. Before you sign on the dotted line, you should know about what features and benefits your home loan offers. Your home loan’s flexibility can be just as valuable as the price you’ll pay in fees and interest charges.
Whether you’re looking to refinance your mortgage, or are looking to buy your first home, here are some of the top-rated home loans from RateCity’s Real Time Ratings in June 2020, based on both cost and flexibility:
(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 home loans from large banks
Assumes a $400,000 mortgage for an owner-occupier, with a variable interest rate and a maximum LVR of 80%.
Best home loans from new lenders
Assumes a $400,000 mortgage for an owner occupier with a variable interest rate.