With Australia entering its first recession in decades, banks and mortgage lenders are eager to sign up new customers, and are making discounted interest rates available to first home buyers and refinancers. Large and small banks have been slashing both fixed and variable interest rates, and may continue to compete by offering further discounts.
However, before you rush out to immediately apply for the lowest rate on the market, remember that the home loan with the lowest rate may not be the best mortgage for you. Upfront fees and charges could affect the cost of a mortgage, and flexible features and other benefits could let borrowers enjoy additional value.
It’s also important to check if other terms and conditions may apply to a home loan with a low interest rate, such as having to pay a higher deposit or have more equity available as security. To qualify for one of the lowest interest rates, you may need to show that you’re one of the most reliable borrowers.
Other special terms and conditions may also apply to some of Australia’s lowest mortgage interest rates. For example, at the time of writing the lowest fixed interest rate in Australia comes from Bank of us, but this 1.99 per cent interest rate is exclusive to residents of Tasmania, which is no good if you’re living in, say, Perth.
To help you start comparing mortgages that may offer a balance of low costs and access to flexible features and benefits, here are some of the top-ranked home loans in July 2020 according RateCity’s Real Time Ratings:
Compare some of the top-rated variable rate home loans:
Compare some of the top-rated 3-year fixed rate principal and interest home loans: