Some of the best home loans in October 2022

The Reserve Bank of Australia’s (RBA’s) decision to hike the cash rate by just 25 basis points, rather than 50, at its October 2022 meeting could be a sign there’s a light at the end of the tunnel for homeowners being squeezed by rising mortgage repayments. But with economists forecasting that interest rates could still have further to rise before the RBA hits pause, it may be worth comparing home loan offers to work out if you’re on the best value home loan for your needs. 

Following the October 2022 RBA meeting, the national cash rate is now at 2.60 per cent, which is the highest point since July 2013. As mortgage lenders pass this rate hike on to customers, it’s important to look beyond a home loan’s interest rate to estimate its true value. RateCity’s Real Time Ratings™ combine the cost and flexibility of home loan offers into a simple star rating, to provide a quick and simple way to compare mortgage deals. And to quickly compare some of the top-rated home loans side by side, RateCity’s Home Loan Leaderboards rank mortgage offers in different categories by their Real Time Ratings™.

(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

As well as affecting mortgage repayments, recent rate rises have also affected the borrowing power of many Australians. According to RateCity research, the average person’s maximum borrowing capacity dropped by approximately 20%, or $134,500, because of the previous five interest rate rises. This is reportedly having a flow-on effect in property markets, with house prices falling in some areas around Australia.  

If your home-buying budget is limited, there are competitive home loan offers available for borrowers with deposits as small as 5 per cent of the property value. However, it’s important to remember that the lower your deposit, the more you may need to pay in Lenders Mortgage Insurance (LMI).

Some of the best 3-year fixed home loans

When the RBA lowered the cash rate to the record low of 0.10 in November 2020, extra-low fixed rate home loans became available. But with more of these low-rate offers seeing their fixed-rate terms expire as time goes on, more and more Australians could be faced with bill shock when they revert to a much higher variable rate.

While the extra-low fixed rates are no longer available, there are still options available for borrowers wanting to lock in their home loan rate and give their household budget a little more stability. Some lenders are offering cashback deals and more to provide extra value for borrowers.

Some of the best home loans from large banks

In previous months, Australia’s big banks have taken their time to respond to rate hikes from the RBA. However, in October 2022 the big four banks quickly announced that they would be passing the full 25-point rate rise on to their mortgage customers. 

Other major banks in Australia have competitive mortgage deals available. While you may not always be able to find the lowest interest rates on the market, you may be able to benefit from the value of other features and benefits, and in some cases cashback deals.

Compare home loans in Australia