Some of the top-rated home loans in August 2024

With interest rates likely to remain on hold for the immediate future, what does this mean for your home loan? If you’re in the market to buy a property or refinance your existing home loan, it’s important to compare your options before selecting a mortgage deal.

The Reserve Bank of Australia (RBA) kept the national cash rate on hold at 4.35% at its August 2024 meeting. While economists from some of the big four banks have been forecasting that the RBA will cut the cash rate in November 2024, Governor Bullock confirmed that a rate cut in the near future was highly unlikely, based on current data. Some of the big four banks have been predicting that the RBA will commence an easing cycle starting in early to mid 2025.

The cash rate staying on hold could be welcomed by many mortgage holders, who in the lead-up to August were afraid that higher than expected monthly inflation could have indicated an imminent rate hike. According to Lending Indicator data from the Australian Bureau of Statistics (ABS) as of May 2024, the average new owner-occupier mortgage was $626,055; the highest level in ABS records. Any change to the cash rate could risk making a major impact on household budgets, with many Australians already struggling to service their loans alongside the current cost of living.  

Even if the RBA cuts the cash rate sooner rather than later, there’s no guarantee that your mortgage lender will pass this cut on to all of its variable rate home loan customers. Plus, you may not get to immediately enjoy lower mortgage repayments – in most cases, you’ll need to contact your lender and ask to be put on a lower rate.

Borrowers hoping to give themselves a home loan discount could consider researching alternative mortgage offers with lower interest rates, rather than waiting for the RBA and their banks to drop a rate cut into their lap. When comparing home loans, it’s important to look at the interest rate, but also the fees, features and benefits to get a better idea of if a home loan would be a good fit for your personal financial situation.

To help you quickly compare home loans, RateCity’s Real Time Ratings™ combine their cost and flexibility into a single simple star rating to better indicate their overall value. These ratings are updated frequently, and ranked on RateCity’s Home Loan Leaderboards. Some of the consistently top-rated home loan offers may also be eligible for a RateCity Gold Award.

(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.)

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