Buying a home or looking to refinance? The table below features home loans
with some of the lowest interest rates on the market for owner occupiers.
Product Features
Monthly repayments: $1,476
Advertised
Rate (p.a.)
Comparison
Rate (p.a.)
Product Features
Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. If products listed have an LVR <80%, they will be clearly identified in the product name along with the specific LVR. The product and rate must be clearly published on the Product Provider’s web site. Monthly repayments were calculated based on the selected products’ advertised rates, applied to a $400,000 loan with a 30-year loan term.
Once a month (except in January), the Reserve Bank of Australia board (RBA) meets to discuss the official cash rate target, which is the market standard for lending and borrowing money between banks. The lower the cash rate, the lower the interest rates on bank products such as home loans, savings accounts, term deposits and more.
If there is a rise or fall in the cash rate, then your mortgage’s variable interest rate is likely to rise or fall by a similar amount, depending on the bank. In 2019, for example, there were three cash rate changes of 25 basis points (0.25%), from 1.50% to 0.75%, and most lenders dropped home loan rates by a similar amount.
However, lenders can also raise or cut home loan rates even when the RBA has not made any changes to the cash rate, so you should always be on your toes.
Savings.com.au’s home loan rate change calculator can show you what your home loan repayments could hypothetically change by if your lender changes your interest rate.
Finding out if your budget could handle a potential cash rate increase, or if you can continue to make higher repayments if there is a decrease, could be seriously useful in helping you safeguard your financial future.
The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:
Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site.
In the interests of full disclosure, Savings.com.au, Performance Drive and Loans.com.au are part of the Firstmac Group. To read about how Savings.com.au manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.
*The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
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