Some of the best home loans in May 2022

After months of speculation and anticipation, the Reserve Bank of Australia (RBA) has increased the national cash rate at its May meeting. This could lead to rising interest rates in the future, making it important to compare the available options before selecting a mortgage lender.

It’s important to keep in mind that a home loan’s interest charges and fees are just one aspect of selecting a mortgage deal. It’s also important to consider a home loan’s features and benefits, which could make a big difference to its overall value.

RateCity’s Real Time Ratings™ combine the cost and flexibility of home loans into a single star rating, updated daily to provide a more accurate indication of its potential value. The top-rated home loans in different categories are ranked on RateCity’s Home Loan Leaderboards, which are in turn used to help select the RateCity Gold Award winners.

(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 best variable rate home loans

Following the rise to the national cash rate, interest rates on many home loans is likely to start rising. Some economists are predicting that Australian could expect to experience regular rate rises for the next year or more as the RBA attempt to slow the effects of inflation upon the broader economy.

When selecting a variable rate home loan, it’s important to consider if you will be able to comfortably afford the repayments both today and in the future. Flexible home loan features such as access to extra repayments, offset and redraw, may also be helpful for managing your mortgage repayments.

Some of the best 5-year fixed home loans

It’s not a secret that several major mortgage lenders have been repeatedly raising their fixed rate mortgage offers over recent months.

While several fixed rate home loans may charge higher interest rates than their variable rate counterparts at present, locking in a consistent interest rate for as long as five years could provide some much-needed peace of mind to some borrowers who are concerned about runaway variable rates. Just keep in mind that you may not have the option to refinance with another lender during the fixed-rate term without paying break fees.

Some of the best packaged home loans

When interest rates are rising, sometimes it’s the extra features and benefits that can make the difference when choosing between mortgage options.

For some borrowers, a packaged home loan, which combines a mortgage with a credit card and/or a bank account, could offer a great deal of convenience, as you may be able to manage many of your financial products and services all in the one place.  You may also want to look at the packaged products and services and consider whether you may enjoy better value choosing separate offers.

Compare home loans in Australia