RateCity has compiled the best home loans for both fixed and variable rates as of today.
Although the Reserve Bank of Australia (RBA) has put the official cash rate on hold, some experts suggest that a hike is expected as early as mid-2022. When this happens, variable rates are expected to rise in due course.
Fortunately, aspiring borrowers still have many affordable home loan options to choose from ahead of June. According to the Australian Bureau of Statistics (ABS), the value of new owner-occupier loan commitments rose 1% to $22.7 billion in January, with the average loan size at $619,000.
To shield against the rate hike of the near future, RateCity advised borrowers to maximize five-year fixed terms for interest rate and mortgage repayments to remain the same throughout the duration of the loan.
RateCity listed the following lenders with the best five-year fixed home loans: G&C Mutual Bank at 2.89%, Bank Australia at 3.40%, WAW at 3.85%, Hume Bank at 3.94% and Auswide Bank at 3.99%. These rates will not exceed $1,600 in monthly repayments.
Meanwhile, some of the best variable home loans in the market are from Pacific Mortgage Group at 1.87%, loans.com.au at 1.88%, Tic:Toc at 1.89%, Reduce Home Loans at 1.89% and Suncorp at 2.02%. These rates will not exceed $1,300 in monthly repayments.
It might also be worth looking into alternative lenders given that bigger banks are no longer competitive, RateCity said. These include Athena, Police Credit Union and 86 400 with a variable rate of 1.89%.
