Some of the best home loans in December 2021

While many Australians slow down and take a break during the holidays, nothing is completely stopping the Australian property market. Some buyers and sellers rush to finalize sales before the end of the year, while others take advantage of the holidays to close deals with less competition.

Whether you’re a first-time buyer or a refinancing investor, it’s important to consider some of the best mortgage options on RateCity, to determine which ones are best for your needs. RateCity’s ratings rank mortgage loans into different categories based on their Real-Time Ratings â„¢, which combine the cost and flexibility of each loan to better indicate their overall value.

Some of the best five year fixed home loans

Earlier in 2021, fixed interest rates fell to all-time highs. As we come to the end of 2021, fixed rates are rising as the big banks look to compete on variable interest rates. While you can no longer find fixed interest rates below 2% at major banks, you can still lock in a fixed rate for five years.

Some of the best variable home loans

While the Reserve Bank of Australia (RBA) maintained the national treasury rate at its December meeting, as it did for over a year, that hasn’t stopped many mortgage lenders from reduce their variable interest rates out of the cycle. Applying for a low-rate variable home loan may allow you to benefit from reduced interest charges, although it should be borne in mind that your mortgage repayments may increase in the years to come if rates are low. start to increase.

Some of the best small deposit home loans

Interest rates weren’t just low for home loans this year – Australian savers struggled to earn more than a small amount of interest on their savings accounts and term deposits. This has been yet another challenge for borrowers trying to save a deposit on their first home.

It is still possible to apply for a home loan with a deposit as small as 5%, although the smaller your deposit, the more you may have to pay in Lender’s Mortgage Insurance (LMI). You can also apply for a home loan with the help of a guarantor.

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