Some of the top rated home loans for December 2024

It’s the holiday season, but for homeowners wishing for lower mortgage rates under the tree, this gift might not arrive just yet. As 2024 approaches to a close, the outlook on interest rates remains a hot topic, especially for homeowners and prospective buyers.

Earlier this year, many of Australia’s big banks predicted that the Reserve Bank of Australia (RBA) would cut the cash rate by the end of 2024. However, with inflation still above target and ongoing economic pressures, those forecasts have shifted. Most major banks now anticipate rate cuts to commence in May 2025, with the possibility of elevated rates persisting if inflation proves stubborn.

At the annual CEDA dinner, RBA Governor Michele Bullock reiterated that while inflation has declined from its peak, it has not yet reached the sustainable target range of 2–3%. As a result, immediate cuts to the cash rate seem unlikely. According to the RBA’s November 2024 Monetary Policy Statement, gradual rate reductions are expected to begin around mid-2025.

While the Commonwealth Bank continues to maintain its forecast of a February rate cut, the reality is that any reduction could still be 3 to 6 months away. For those looking to take matters into their own hands, exploring the market for refinancing deals can help.

Switching to a home loan with more favourable terms may ease financial strain. However, it’s essential to assess the overall cost of switching, including fees and other expenses. Borrowers should also evaluate the features and flexibility of various loans to identify options that align with their unique financial goals and household needs.

RateCity’s Real Time Ratings™ can help you quickly compare the options available to you by combining their cost and flexibility into a single star rating. These ratings are updated frequently, and the top-rated choices are ranked on RateCity’s Home Loan Leaderboards. Some of the top-rated mortgage deals in different categories may also be eligible for a RateCity Gold Award.

• Arab Bank Australia Ltd The Basics Low Rate Home Loan Offer (LVR < 60%) at 5.75% (comparison rate 5.88%)
• Summerland Bank Eco Home Loan (New Customer) (LVR < 60%) at 5.84% (comparison rate 5.89%)
• Reduce Home Loans Pty Ltd Eco Home Loan Variable < 60% at 5.84% (comparison rate 5.89%)
• Pacific Mortgage Group Standard Variable Home Loan (Principal and Interest) (LVR <80%) at 5.89% (comparison rate 5.89%)
• RACQ Bank Fair Dinkum Home Loan (Principal & Interest) (LVR < 60%) at 5.89% (comparison rate 5.89%)

Source: RateCity.com.au. Data accurate as of 02/12/2024.

This is the comparison rate published by the lender and is on a per annum basis. The comparison rate is calculated for a secured loan for an amount of $150,000 over a 25 year term. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.