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Some of the top-rated home loans in September 2023
Just because the Reserve Bank of Australia (RBA) kept the national cash rate on hold at 4.10% for the third meeting in a row, that’s no reason for Australian home buyers to get complacent. Major banks and mortgage lenders have still been raising their interest rates out of cycle from the RBA, making it important to also consider comparing offers from their smaller competitors.
RateCity research has found that the big four banks collectively have now increased at least one advertised new customer variable rate on 21 occasions since 1 March 2023, in addition to the standard RBA hikes. Additionally, over the month of August 2023 more lenders have increased variable rates than those that have cut for owner occupiers paying principal and interest.
Before you go shopping for properties as a first home buyer, upgrader or downsizer, it’s important to also go shopping for home loans, comparing not just their interest rates, but their other fees, features and benefits. One fast way to get an idea of the overall value offered by different home loans is to compare their Real Time Ratings™ at RateCity. These simple star ratings are based on a combination of a home loan’s cost and flexibility, and are regularly updated to ensure improved accuracy at any given time. These ratings are also used to rank home loans in different categories on RateCity’s Home Loan Leaderboards, and to help determine the winners of the RateCity Gold Awards.
(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 top-rated home loans from new lenders
With some of Australia’s leading banks raising interest rates for new customers out of cycle from the RBA and withdrawing or slashing other incentives such as cashback deals, smaller lenders and newer players on the mortgage market are stepping in to fill the gap. Some of these newer lenders include app-based digital banks, which may be a little different for anyone who’s used to traditional banks with branches and ATMs. But when you look at the competitive rates and other offers that are available, including discounts, frequent flyer points, and access to innovative banking technologies, it may be worth considering some of these alternative options as part of your home loan comparison.
Some of the top-rated variable home loans
If you’re not yet prepared to go full digital with your home loan, another alternative option could be to compare choices from smaller banks. These may include mutual banks, which includes credit unions, building societies and the like. As well as offering competitive rates, some of these lenders are also offering the cashback rewards that many of the major banks have recently pulled back on, which could be useful in some circumstances to help offset some of the extra costs of buying a property, such as stamp duty and solicitor’s fees.
Some of the top-rated small deposit home loans
Housing affordability continues to be a concern for many Australians, with CoreLogic data showing that relatively low supply is contributing to rising house prices. Australians hoping to buy their first home or a new home in this environment may be in for a challenging time - which could mean thinking about pushing their deposit further. Some lenders offer competitive offers for customers with deposits of less than 20% of the property value, though it’s important to calculate the potential cost of Lenders Mortgage Insurance (LMI) and consider whether a deal like this would be worth it in your circumstances.
Compare home loans in Australia
Product database updated 29 Apr, 2024
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