Some of the top-rated home loans in October 2024

The Reserve Bank of Australia (RBA) kept the national cash rate steady at 4.35% in its September 2024 meeting, meaning mortgage rates remain unchanged for now. The RBA's next decision will be announced on November 5, 2024. If the cash rate stays on hold, it will mark eight consecutive meetings with the cash rate remaining at 4.35%.

Globally, interest rate moves are making headlines, with the US Federal Reserve recently cutting its benchmark rate by half a percentage point. However, RBA Governor Michele Bullock emphasised that Australia’s economic conditions differ from those in the US, and countries like New Zealand and Canada, which have seen higher unemployment rates.

But when can Australian mortgage holders expect some relief?

While the RBA hasn’t signalled any immediate rate cuts, new data from the Australian Bureau of Statistics (ABS) reveals that inflation is easing. In August, annual inflation was down to 2.7%, within the RBA’s target range of 2-3%, marking the lowest reading since August 2021. This suggests inflationary pressures are moderating, which may pave the way for future rate cuts. However, in its monetary policy statement, the RBA has warned that it might be “some time yet before inflation is sustainably in the target range.”

For those anticipating a rate cut, there seems to be no clear answer to when. Economists are divided on the timeline for rate cuts. Some predict the current rate could hold until mid-2025, while others speculate we might see up to two rate cuts before the year ends.

With uncertainty around when the RBA might take action, mortgage holders feeling the squeeze can take matters into their own hands by shopping around for a better deal. Refinancing to a home loan with a lower interest rate could offer immediate relief.

However, when considering refinancing, it’s crucial to assess the overall cost of switching. Additionally, borrowers should consider the features and flexibility of different loans, and consider which choices may best suit 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.

(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.)

RateCity's top-rated home loans with a variable interest rate. Assumes a $400,000 mortgage with a maximum LVR of 80%.

Police Bank First Home Loan Fixed (Principal and Interest) 3 Years (LVR 80%- 95%) at 5.59% (comparison rate 5.85%)

Police Bank First Home Loan Fixed (Interest Only) 3 Years (LVR 80%- 95%) at 5.59% (comparison rate 5.85%)

Border Bank First Home Loan Fixed (Interest Only) (LVR 80%-95%) 3 Years at 5.59% (comparison rate 5.85%)

Bank of Heritage Isle First Home Loan Fixed (Interest Only) 3 Year (LVR 80%-95%) at 5.59% (comparison rate 5.85%)

Border Bank First Home Loan Fixed (Principal and Interest) (LVR 80%-95%) 3 Years at 5.59% (comparison rate 5.85%)

Source: RateCity.com.au. Data accurate as of 03/10/2024.

This is the comparison rate published by the lender and is on a per annum basis. The comparison rate is calculated for a secured loan for an amount of $150,000 over a 25 year term. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.