Some of the best home loans in December 2020

We’re at the beginning of the end of what may be generously described as a challenging year, after months of social upheaval and economic recession. So, what are your options if you want to start 2021 strong?

RateCity has compared home loans and ranked some of the best mortgage options based on our Real Time Ratings system, to give you a better idea of which mortgages may offer you the benefits of their cost and flexibility.

Home loans for refinancing

Do you know your current home loan interest rate? A RateCity survey found that half of Australia’s mortgage holders don’t. If you’ve been thinking of refinancing, cheaper interest rates could be available.

Following the cash rate cuts this year, several lenders have slashed home loan interest rates, with some mostly focusing on fixed rates for new customers, though variable rates for refinancers are also available.

Home loans for higher house prices

Economists and mortgage industry researchers are predicting growth in Australian house prices this coming year. This is understood to be particularly true for regional areas, as Australians abandon cities for the country after a year of lockdowns, self-isolation and working from home.

While this could potentially give existing mortgage holders more equity to work with, first home buyers may soon find that they need to spend more money for their dream home. They may need to save longer to afford a deposit, but the extra time it may take could see house prices increase further. Low-deposit home loans could offer alternative options, though it’s important to consider the potential cost of LMI.

Home loans that can reward you

After a tough year for the economy, some state governments are looking at encouraging Australians to return to the market with offers of discounted stamp duty or an optional property tax. 

Some banks and other mortgage lenders are also offering mortgage deals to encourage new customers, from packaged financial services to cashback incentives.  

Compare home loans in Australia