Former-What is the best home loan rate in Australia?
While you might be accessing the best home loan rate your particular bank can offer you, it may not be the best interest rate available in the market. You might also be missing out on features and benefits available elsewhere, making it important to look at what else may be on offer.
When you are shopping around for the lowest and best home loan rates, there are many things that you should consider.
Low interest loans are important, but it’s more important to consider your needs and goals when choosing a home loan.
You may find the best Australian home loan for you isn’t the cheapest, but the one that offers features and benefits that best suit the way you live.
For example, low interest rate loans may not allow you to make additional repayments or save interest using a deposit offset account – strategies that could save you significantly more than paying a slightly lower interest rate.
When comparing home loan interest rates, remember to also compare any establishment fees you might be charged, and any account fees or monthly fees. Also don’t forget to lock in that low rate once approved.
Compare home loan interest rates
All banks offer a 'standard variable rate’ on their home loan products, which is their basis for comparison.
While banks may offer discounts on their standard variable rate (e.g. according to your level of borrowings or your mortgage type), they may also have a ‘basic variable rate’ home loan available.
If you find you don’t need the additional features and benefits of a standard variable rate loan, you may benefit from a lower rate on a basic variable loan.
Many banks also offer discounts off the advertised home loan rates for clients opting for a professional package. The discounts can be a quite a bit lower than the standard variable rate but you may find the annual package fee expensive. A professional package will often include a home loan a transactional account that may double as a deposit offset account, and a credit card facility.
Best Mortgage Interest Rates on the Market – Fixed or Variable Rate?
The rate that stays the same and guards against mortgage rate rises in the future is a fixed rate, these can enable long term budgeting. On the down side, the rate remains constant even if interest rates fall. Whereas a variable rate a popular choice with flexible payment schedules and extra repayments accepted, however, Choice Home Loans warn not to be lulled into a false security through the short-lived honeymoon interest rates.
You can have the best of both by looking at a split rate here you blend fixed and variable rates where borrowers choose a set amount to stay at a fixed rate with the remainder governed by changing interest rates. Popular with borrowers who prefer to err on the side of caution, however, additional charges may apply.
We can help with finding the competitive Mortgage Rates
Our mortgage brokers can help you compare mortgage products before you make a decision and ensure you are getting the right home loan solution to meet your needs. Contact us today.