Which lender has the lowest loan rate in Austalia?
The Reserve Bank has decided to keep official interest rates unchanged in October at 1.5 per cent. That leaves the average standard variable home loan rate in Australia unchanged at 4.67 per cent.
The Reserve Bank is expected to leave official interest rates unchanged until at least February 2017. If you want to secure a lower rate on your home loan, you need to take control, compare products from all of Australia’s significant mortgage lenders and be prepared to move to a cheaper loan.
The monthly repayments on a 25 year, $300,000 home loan charging 4.67 per cent are $1,696.58. Borrowers who organise their own substantial rate cut by refinancing to a low cost loan from an average mortgage can save around $200 per month. The monthly repayments on the same $300,000 home loan, but with the lowest standard variable home loan rate in the market (3.48 per cent from Homestar’s Standard Offset Variable ) are $1,498.65. That is a monthly saving of $198 and an annual saving of more than $2,400.But many borrowers can save much more than that.
The highest standard variable home loan rate in the Australian market right now is 6.91 per cent from State Custodians Self Employed Flexi (90% LVR) for owner occupiers. This loan is specifically designed for the higher risk profile of self-employed borrowers. The monthly repayments on a 25 year, $300,000 home loan charging around 6.91 per cent are around $2,100 per month. That is more than $600 per month more than the lowest rate loans in the market right now.
Compare variable rate home loans from all of Australia’s significant lenders here.
What is the best fixed rate home loan rate in Australia right now?
Three year fixed rate loans are traditionally a popular term for fixed rate mortgages. The average three year fixed home loan rate in Australia is currently 4.10 per cent. The average repayments on a 25 year, $300,000 loan charging 4.10 per cent are $1,600.12.
The lowest three year fixed rate home loan rate is currently 3.64 per cent from Suncorp Bank’s Special Offer Home Package (for loans over $150.000 with an LVR of at least 90 per cent) and Morgan Brooks’ Fixed Three Year Combination Variable loan. The monthly repayments on an average loan charging 3.64 per cent are $1,524.49.
Compare fixed rate mortgage deals from all of Australia’s major lenders today.