Some of the top-rated home loans in March 2024

It’s not a secret that the higher your deposit, the lower the home loan interest rate you may be able to get. However, saving a deposit can be one of the toughest parts of buying property, especially in Australia’s capital cities. 

This is why so many of Australia’s low-rate home loans and cashback deals are targeted at refinancers, as the equity they hold could potentially better secure a mortgage than a saved cash deposit.

A common strategy when budgeting for a home loan is to make smart use of one or more offset accounts to help slash the interest you’re charged, which can potentially help you get out of debt sooner and pay less total interest on your property. However, home loans with offset accounts may also charge higher interest rates and fees than more basic ‘no-frills’ home loans.

Before switching to a home loan with an offset account, it's often worth making a few calculations to estimate how much value an offset account could potentially offer you, compared to the higher cost. Depending on your results, you could consider adjusting your mortgage repayment strategy, or looking at home loans with alternative features, such as a redraw facility.

Economists from some of Australia’s biggest banks are currently forecasting that the RBA could cut the cash rate in the second half of 2024, commencing an easing cycle that could run through to the end of 2025. While this could potentially lead to lower home loan interest rates in the future, these forecasts rely on Australia’s inflation falling towards the RBA’s target band at a predictable pace. This is in no way certain, with the RBA refusing to rule out additional rate hikes if it becomes necessary in the future.

Australians looking for a little stability could consider a fixed rate home loan for their property, which will keep their repayments consistent and regular for a limited time. Just keep in mind that fixed rate loans tend to be less flexible than their variable rate counterparts, and if rates do fall, you could be stuck paying a higher rate until the end of the fixed rate period. Carefully consider if a fixed rate may be right for you, and consider seeking professional advice from a broker or adviser.