Some of the top-rated home loans in August 2023

If you’re in the market for more than just a home loan, some mortgage lenders can bundle a home loan with a transaction account, a credit card, insurance, or other offers. If these offers look like they’ll suit your needs, this could effectively add extra value to a home loan deal. 

Depending on the option you choose, you could also benefit from other extras such as cashback, which could make a big difference when the cost of living is putting pressure on budgets.

Higher interest rates may be partly responsible for house prices falling in several areas across Australia, but that isn’t necessarily good news for first home buyers. Higher home loan interest rates are considered when a lender calculates whether you can afford to service a home loan, meaning you may have less borrowing and buying power than you expected.

To get a bigger loan, you may need to consider a home loan that allows a smaller deposit. That said, you may want to calculate the potential cost of Lenders Mortgage Insurance (LMI) and consider whether this option will still be worth it in your financial situation.

It's not yet certain that we’ve seen the RBA’s last rate rise. If inflation doesn’t fall towards the RBA’s target band fast enough, or if other factors affect the economy, the RBA could choose to pull the rate hike lever once again.

Even if the RBA keeps the cash rate on hold in the future, that doesn’t mean home loan interest rates are set in stone. Lenders can (and do) adjust home loan interest rates out of cycle from the RBA, which can affect your repayments.

Without a foolproof crystal ball, there’s no way to accurately forecast Australia’s economic future. If you’d prefer to keep your household budget consistent and avoid potential surprises, you could consider fixing your home loan interest rate.