Some of the best home loans for refinancers and investors in February 2023

The most recent meeting of the Reserve Bank of Australia (RBA) board brought us a 25-point hike to the national cash rate, along with assurances that more rate rises are coming. Australians looking to refinance the mortgage on their home or investment property may need to carefully compare their available options to make sure they’re getting a deal that suits their needs.

The February 2023 RBA meeting resulted in the national cash rate rising by 25 basis points to 3.35% - the highest point since 2012. This was the ninth consecutive increase to the national cash rate, following the RBA slashing the cash rate to a record-low 0.10% during the pandemic. Many Australians took out record-low fixed rates at this time, with many of these fixed rate terms due to expire this year.

It's not just interest rates that have changed in the last few years. Inflation, rents, and the cost of living have all gotten higher, putting more pressure on Australian households. Record numbers of Australians are refinancing their home loans to try and keep the cumulative impact of nine consecutive rate rises from catapulting them into mortgage stress.

It's important to remember that a home loan’s interest rate is just one factor that goes into determining its overall value. RateCity’s Real Time Ratings™ combine each home loan’s cost and flexibility into one simple star rating, to help speed your home loan search. You can make finding an alternative home loan even easier by looking at the RateCity Home Loan Leaderboards, which rank home loans in different categories by their Real Time Ratings™.

Some of the best refinance home loans

While many Australians may be looking to switch away from high variable rates when they revert from the fixed rate deals this year, it’s important to note that while refinance home loans often have relatively low interest rates, they also often have specific eligibility requirements. For example, you may need to hold 30 or 40 per cent of your home’s value as equity to qualify for some of the lowest interest rates. Unless you’ve been making extra repayments, if you’ve bought in the last couple of years you may find you don’t have enough equity to refinance to one of these deals, especially when you consider that dwelling values have been declining.

Some of the best investor variable home loans

It may no longer be possible for investors to find fixed rates that are as low as they were a few years ago. However, it may be possible to find mortgage deals that offer value in different ways. For example, several lenders are offering home loans for investors with cashback deals, which may be able to help offset some of the switching costs and ease some budget pressure.

Compare home loans in Australia