Some of the best home loans in December 2022

The Reserve Bank of Australia (RBA) has raised the cash rate for the last time in 2022, though more rate rises could follow in 2023. As Australians strap in for the post-holiday financial hangover, it’s important to check if your home loan is a good fit for your evolving financial situation.

The latest 25-point hike has seen the national cash rate rise in 2022 from its record low of 0.10 per cent in April up to 3.10 per cent in December. With banks and mortgage lenders passing these hikes on to their home loan customers, this has contributed to a slowdown in home lending across the country.

But while home loans interest rates have been rising across the board, some lenders have slashed rates on certain offers to help encourage new customers. Borrowers may also be able to find extra value from some home loans by looking beyond the interest rate and considering a home loan’s other features and benefits, from flexible repayments to cashback. 

RateCity’s Real Time Ratings™ could help to simplify your home loan search by combining the cost and flexibility of home loan offers into a single star rating. To help make your home loan search even easier, RateCity’s Home Loan Leaderboards rank mortgage offers in different categories by their Real Time Ratings™, which are regularly updated to provide improved accuracy.

Some of the best variable home loans

While variable interest rates have risen over 2022, some home loans features and benefits could allow you to enjoy additional value. For example, extra repayments and an offset account could let you put more of your money in the bank towards reducing your interest charges and paying off your property faster, and a redraw facility could help you conveniently access your extra repayments again if you need the cash back.  

Some of the best three-year fixed home loans

Locking in your home loan interest rate for a few years could potentially allow you to keep your household budget under control, as your repayments will remain consistent and unaffected by upcoming rate rises. But it’s important to be prepared for the expiry of the fixed term when your loan will revert to a variable interest rate, which may have risen higher in the interim.   

Some of the best home loans from large banks

While mortgage offers from the big banks aren’t always the cheapest options on the market, they may be in a position to offer value-adding features and benefits that some smaller lenders cannot. Comparing options from a variety of different lenders can help you get a better idea of which home loans may best suit your financial situation.

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