Top 5 Interest Rates In Australia Right Now

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Top 5 Fixed Interest Rates Australia

Well Balanced Fixed Home Loan

Owner Occupier, Principal & Interest

Interest rate: 2.68% p.a fixed 2 years

Comparison rate: 2.84% p.a

Advantage Home Loan Special

Owner Occupier, Principal & Interest

Interest rate: 2.79% p.a fixed 3 years

Comparison rate: 3.13% p.a

Fixed UHomeloan

Owner Occupier, Principal & Interest

Interest rate: 2.84% p.a fixed 3 years

Comparison rate: 3.59% p.a

Tic:Toc Fixed Home Loan

Owner Occupier, Principal & Interest

Interest rate: 2.84% fixed 3 years

Comparison rate: 2.92% p.a

IMB Bank Fixed Home Loan

Owner Occupier, Principal & Interest

Interest rate: 2.84% fixed 2 years

Comparison rate: 3.48% p.a

Key tip: Fixed rates that apply to your loan are offered by the lender only on the day of settlement. Hence, there is no guarantee that the fixed rate you see at the time of application is the same as the time of settlement. As so, discuss with your lender about locking in the fixed rate when you apply as ‘rate lock’ feature may be available during the application phase. This ensures the final rate remains the same regardless of market movements.

Home Loans with Variable Interest Rates 

On the flip side, unlike fixed-rate loans, variable loans are subject to changes made by the Reserve Bank of Australia and the fluctuations of interest rates. Therefore, this implies that you may have lower repayments in one month but if interest rates rise so will the repayments. Despite this drawback, variable interest rate loans are usually the most preferred by borrowers. This is due to they offer more flexibility and various features that may come in handy when life changes and circumstances arise. 

Some features that may be offered when you get a variable interest rate loan include:

Additional repayments – Allowing you to pay off your loan faster resulting in saving money on the interest of the loan.

Redraw facility – Access to borrow the additional repayments you would have made. Yet, be mindful that some lenders may charge additional fees to access additional repayments.

Offset account – A savings or transactional account linked to your home loan account. To put it simply, the more money you have in your offset account, the less interest you’ll need to pay for your home loan. This is because money deposited into the offset account reduces the balance on which the lender charges interest. As such, this means you’ll only be paying interest on the difference. For instance, if the offset balance is $100,000 and you owe $500,000, then you will only be required to pay interest on $400,000 of your loan balance. 

Top 5 Variable Interest Rates Australia

So, what are the top 5 variable interest rates in Australia right now? Here are our top 5 picks for owner occupied rates:

Homestar Star Essentials Home Loan

*Homestar will donate $250 to the bushfire appeal for every complete loan application received in Jan & Feb.

Owner Occupier, Principal & Interest

Interest rate: 2.74% p.a variable

Comparison rate: 2.77% p.a

Tic:Toc Variable Home Loan

Owner Occupier, Principal & Interest

Interest rate: 2.79% p.a variable

Comparison rate: 2.80% p.a

Well Balanced Home Loan

Owner Occupier, Principal & Interest

Interest rate: 2.82% p.a variable

Comparison rate: 2.86% p.a

UHomeLoan – Discount Offer

Owner Occupier, Principal & Interest

Interest rate: 2.84% p.a variable

Comparison rate: 2.84% p.a

Athena Variable Home Loan

Owner Occupier, Principal & Interest

Interest rate: 2.84% p.a variable

Comparison rate: 2.80% p.a

Can’t Decide An Option?

Maybe you still can’t decide on what home loan option would suit you. So, you might want to consider an option that lets you split the loans to both fixed and variable. In fact, there are so many factors to look into when choosing a home loan. Also, there could be other features you would need or other better home loan options. Or maybe you even want to be with a lender that acts for social good and not just take your money. Here at Benevolence Financial Group, we’ve got you covered. Schedule a free consultation with us today at your own convenience and we’ll guide and take you through quickly and simply about the right options for you! 

Disclaimer: The information provided is general in nature and does not constitute financial advice. Please speak to us for recommendations on your individual circumstance and requirements. 

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