Some of the top rated home loans for January 2025

The value of Australian homes has recorded its first decline since February 2023, according to the latest Home Value Index (HVI) from CoreLogic. After a robust two-year period of growth, values dipped by 0.1% in December, signalling a shift in the housing market's momentum.

CoreLogic highlighted October 2024 as the peak of this growth cycle, with values holding steady in November before the recent decline. The slowdown appears to be driven by affordability challenges reducing buyer demand and a rise in new property listings. These trends are likely to continue into the new year.

Tim Lawless, CoreLogic's research director, noted that the housing market is now reflecting broader economic pressures. "Growth in housing values has been consistently weakening through the second half of the year, as affordability constraints weighed on buyer demand and advertised supply levels trended higher," he said.

While the recent decline in home values might seem like good news for those looking to buy a house, it’s worth keeping an eye on financing options, whether buying or refinancing. The Reserve Bank of Australia (RBA) has held rates steady for several months, but a rate cut might be on the horizon. Economists from ANZ, NAB, and Westpac expect a 25-basis-point cut in May, potentially lowering the cash rate to 4.1%, while the Commonwealth Bank predicts the first cut could come as early as February, though strong job market data has added some uncertainty.

In the meantime, homeowners can give themselves a rate cut by exploring the market for refinancing deals that may suit their situation better.

Switching to a home loan with more favourable terms may ease financial strain. However, it’s essential to assess the overall cost of switching, including fees and other expenses. Borrowers should also evaluate the features and flexibility of various loans to identify options that align with their unique financial goals and household needs.

RateCity’s Real Time Ratings™ can help you quickly compare the options available to you by combining their cost and flexibility into a single star rating. These ratings are updated frequently, and the top-rated choices are ranked on RateCity’s Home Loan Leaderboards. Some of the top-rated mortgage deals in different categories may also be eligible for a RateCity Gold Award.