Some of the best home loans in April 2022
The Reserve Bank of Australia (RBA) kept its promise to be patient with the national exchange rate, keeping it at a record low of 0.1% for another month. But with some big banks predicting rates could start to rise later this year, what are some of the options available to homebuyers and mortgage holders?
When comparing mortgage options, it’s important to remember that the cheapest home loan isn’t always the best home loan choice for your financial needs. RateCity’s Home Loan Rankings ranks mortgage offers into different categories based on their Real-Time Ratings™, to showcase the value each loan could offer. Because Real Time Ratings™ combines the cost and flexibility of each home loan option and is updated daily, it’s easier to quickly compare mortgage offers.
Some of the best home loans from the big banks
Australia’s big four banks expect the RBA to raise the national cash rate before the end of the year, potentially as early as June 2022. With this in mind, some of these big banks and their competitors have raised fixed rates and cut variable rates . rates on their home loans.
Remember that while you can apply for a home loan with an affordable interest rate and get special offers such as cash back, once the RBA raises the cash rate, your repayments may go up. which makes it important to compare your options. before making a choice.
Some of the Best Variable Home Loans Over $1 Million
While house price growth in some areas would begin to slow, and even fall in a few areas, many Australians may still need to borrow a million dollars or more to buy their favorite property.
It’s important to remember that larger loans generally mean larger repayments, which could put some borrowers at risk of mortgage stress if interest rates start to rise.
Some of the Best Small Deposit Home Loans
As part of the recent federal budget, the government announced the expansion of the support programs it offers to help first-time home buyers, such as the First Home Loan Deposit Scheme (FHLDS). These programs allow eligible borrowers to apply for a home loan with as little as 5% down payment and pay no Lender’s Mortgage Insurance (LMI) as the government will guarantee up to 15%.
That said, RateCity’s research found that borrowers with small deposits (including those using guarantors) could run the risk of ending up with negative equity if a house price crash were to occur in the future. the future. Combined with rising rates, this could leave some homebuyers vulnerable to mortgage stress.