Some of the top-rated home loans in October 2023

With the cash rate forecast to be cut in the future, provided inflation falls into the RBA’s target band, there’s a chance that borrowers may be able to enjoy lower repayments in the future, or the opportunity to put more money towards building the equity in their property.

That said, whatever the RBA does with the cash rate, banks and mortgage lenders may still choose to raise or lower their interest rates out of cycle from the RBA. Additionally, when your lender lowers the variable rate on your home loan, that doesn’t always mean your repayment will automatically lower too – you may need to contact the lender and ask them to update your repayments to reflect the lower interest rate.

Another mortgage option to consider would be locking in your home loan interest rate for one or more years. This may help to keep your repayments consistent, so whether or not the lender raises or lowers their variable rates, you’ll always be budgeting the same amount for your home loan during the fixed term. 

Just keep in mind that you could potentially miss out on savings if your lender lowers its variable rates during your fixed term, and refinancing to a lower rate during this time could mean paying hefty break fees. Also, some fixed rate home loans may not offer as many flexible features and benefits as their variable rate counterparts – always compare the available options. 

While Australia’s Big Four banks often receive a lot of focus, they are far from the only game in town. If you want the confidence of getting your home loan with a major financial institution, there are alternative lenders available that may also be able to offer competitive interest rates, plus special offers such as cashback deals.