While the Reserve Bank of Australia (RBA) kept the national cash rate on hold this month, some lenders expect a rate hike could be on the cards as early as June. Whenever the cash rate increases, you can expect many lenders to increase their variable interest rates accordingly, increasing home loan repayment costs and reducing maximum loan amounts for home buyers. a first home and other new borrowers.
Homeowners looking to buy a property, whether it’s their first home or a downsizing or upsizing, still have plenty of home loan options to choose from. In addition to considering the interest rate, it’s important to review any fees, features, and other benefits that could impact the value of the loan, to ensure you choose the option that best suits your needs. financial.
One of the easiest ways to find some of the best home loans in different categories is to look at some of the top-rated options from RateCity’s rankings, which rank home loans based on their Real-Time Ratings™. These star ratings are updated daily and combine the cost and flexibility of each offer into one rating to help simplify your search.
Some of the Best 5 Year Fixed Home Loans
Several banks and other mortgage lenders have raised their fixed interest rates, with Commonwealth Bank and ANZ raising theirs twice in February 2022.
Fixing the interest rate on your home loan for a long time may result in you paying a higher interest rate today than if you opted for a variable rate home loan. However, your interest rate and mortgage payments will stay the same for up to five years, which can protect you from rising variable rates in the future when the RBA raises the cash rate.
Some of the Best Variable Home Loans
Finding a home loan with a low variable interest rate can be relatively simple. Of course, some of the lowest rate home loans may not offer as many additional features and benefits as some other mortgage offers. Also, when interest rates start to rise your mortgage payments will also start to rise, you may want to check that your household budget can handle it to reduce the risk of mortgage stress.
Some of the best home loans from new lenders
With some of the major banks raising interest rates, particularly on fixed rate deals, it may be worth expanding your home loan comparison to also include some of the alternative mortgage lenders in the market. These may include online-only lenders, app-based neobanks, and customer-owned banks, all of which may be able to provide you with a competitive offer. Just be sure to check the rates, fees, features, and benefits to be sure that you will be happy with the service provided.
Homeowner Accelerates – Celebrate (Principal & Interest)
Some of the Best Small Deposit Home Loans
Saving a down payment proves to be one of the biggest challenges a first-time home buyer faces when applying for a home loan. Thanks to soaring house prices (among other factors), it can take a long time for a borrower to save a full 20% down payment on a property.
Some lenders accept applications with a down payment as small as 5% or even 2% of the value of the property, although the smaller your down payment, the more you may have to pay into the Lender’s Mortgage Insurance (LMI). Borrowers may be able to avoid these IMT costs by applying with the help of a guarantor or using government support programs such as the First Home Loan Deposit Scheme or the Family Home Guarantee for parents. isolated.