Some of the best home loans in November 2022

The November 2022 meeting of the Reserve Bank of Australia (RBA) Board saw the national cash rate increase by 25 basis points, bringing it to 2.85% - the highest level since April 2013. And with inflation now expected to peak at 8 per cent by the end of 2022, the RBA has indicated that more rate hikes are coming. 

Homeowners hoping to refinance or first home buyers wanting to take that first step onto the property ladder may want to keep a careful eye on home loan interest rates as mortgage lenders pass on the latest cash rate hikes to customers. Additionally, they may want to look beyond the interest rate, as some mortgage deals may offer greater value than others, thanks to their extra features and benefits.

A quick and simple way to compare the relative value of different home loans it to compare their Real Time Ratings™. These combine the cost and flexibility of each mortgage offer into a single star rating, which is updated daily to help ensure accuracy. RateCity’s Home Loan Leaderboards rank the top-rated home loans in different categories by their Real Time Ratings™ to further simplify your home loan comparison journey. And some of the top-ranked offers may also become eligible to be nominated for RateCity’s Gold Awards.

(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 small deposit home loans

Some first home buyers aim to join the property market sooner by applying for a home loan with a low deposit. This means you can spend less time saving and more time building your equity in a property, even if you have to budget for costly Lender’s Mortgage Insurance (LMI) or get help from a guarantor.

However, it’s important to remember that the recent interest rate rises have also contributed to falling property values in many areas around Australia. Purchasing a property with a low deposit could put you at a higher risk of potentially finding yourself in negative equity in the future if values decline further in your area. This could in turn put you at risk of finding yourself in “mortgage prison” – unable to afford higher interest rates, but also unable to refinance to a cheaper deal. 

Some of the best packaged home loans

Borrowers looking for greater value when they buy or refinance a property may find that there’s more to a home loan than its interest rate. Some banks and mortgage lenders bundle their home loans with other financial products, such as a credit card or a bank account, which could be useful to the right borrower.

Before you sign on the dotted line, it’s important to look closely at the bundled products to make sure they’ll also suit your needs, and to calculate if the value they offer will be worth the cost of the package fee.

Some of the best fixed rate home loans

If you’re concerned about upcoming future interest rate rises and what they could mean for your household budget, you could consider a fixed rate home loan. This is where your interest rate will stay the same for a pre-set period, typically between one and five years, so that your mortgage repayments will remain consistent over this time.

Generally, the longer you choose to fix your rate, the higher the rate you may pay compared to a variable rate home loan. However, if you can comfortably afford the repayments, fixed rates could provide some stability to your household budget for a limited time.

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