Home loan interest rates

Interest rates are at record lows but may not stay this low forever. Now might be an ideal time to shop around and lock in a low rate. Staying up to date with current interest rates and the latest RBA decision can help you decide whether your home loan is still right for you.


Home loan interest rates will play a big role in your regular home loan repayments. Lenders know this – so there is plenty of competition to provide the best home loan rates. However, mortgage interest rates are decided by a range of factors, and they will vary from lender to lender. This makes it important to stay up to date with current interest rates and compare different types of home loans to see which home loan interest rates offer the best value without scrimping on loan features.

 

Our top five interest rates available


Lender
Interest
Rate
Comparison
Rate

Credit criteria, conditions, fees and charges apply. Subject to suitability. The comparison rates in this table are based on a loan amount of $150,000 and a term of 25 years. Warning: This Comparison Rate applies only to the example or examples given. Different amounts and terms will result in different Comparison Rates. Costs such as redraw fees or early repayment fees, and costs savings such as fee waivers, are not included in the Comparison Rate but may influence the cost of the loan.

Lender
Interest
Rate
Comparison
Rate

Credit criteria, conditions, fees and charges apply. Subject to suitability. The comparison rates in this table are based on a loan amount of $150,000 and a term of 25 years. Warning: This Comparison Rate applies only to the example or examples given. Different amounts and terms will result in different Comparison Rates. Costs such as redraw fees or early repayment fees, and costs savings such as fee waivers, are not included in the Comparison Rate but may influence the cost of the loan.

Yes! The cash rate has held at a record low in time for Christmas

November 2019

What a finish to the year, with the Reserve Bank of Australia (RBA) has announced its decision for December and kept the official cash rate at a tiny 0.75%.

With no further RBA rate decision before February 2020, we can plan for Christmas without worries about rising rates. And that’s good news for home buyers, owners and investors.

Why are rates so low?

Nationally, the economy is still seeing sluggish growth in jobs and wages.The RBA is hoping that super low interest rates will encourage household spending.

The catch, for the RBA at least, is that plenty of Australians are using low interest rates to get ahead on their home loan, rather than running the savings through cash registers. The RBA will now have to wait until February to see whether further cash rate cuts are needed to give the economy a boost.

Property values forge ahead
While the cash rate may be in a holding pattern, the latest figures from CoreLogic show property prices continue to head north.

October saw home values nationally rise by 1.2%, the fourth consecutive monthly increase since June. The gains were chiefly driven Melbourne (up 2.3%) and Sydney (up 1.7%) though markets Australia-wide are benefiting from low interest rates and improved access to credit.

How are lenders responding

A cash rate of 0.75% is uncharted territory for more leners, and we’re still seeing big differences between the home loan rates of different lenders. 

One thing is for sure though, home loans with rates below 3% are a reality.

If you’re a first time home buyer or you’re upgrading to your next home, or just want to be sure your home loan is still the right choice for you, get in touch with your local Mortgage Choice broker to know how you can benefit from the latest rate cut.

Even better, settle a home loan under $500,000 and go into the running to win 2 years’ worth of interest repayments on Mortgage Choice!

This means if you’re looking to buy a place, or even refinance your current home loan, there are opportunities to save out there.

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Snap & Save

Does your home loan interest rate start with a 3? If you answered no, you might be paying too much. Snap a picture of your recent loan statement and we’ll help you determine if you’re still in the right product.

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What does a mortgage broker do?

A mortgage broker can take the time and hassle out of shopping around for the right home loan, and guide you through the home buying process with expert advice.

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