Up until the early 1980’s, home buyers only had three options of getting financed to be able to afford that desired property; banks, building societies and credit unions. This not only meant higher interest rates and stiffer penalties for home buyers, but also resulted in many Australians being denied the chance of owning a home due to low income or bad credit.
With the deregulation of the banking industry in mid-1980’s, other players ventured into the lending market giving Aussie’s to be homeowners a breather. With the entry of the non-bank lenders into the home loans market offering lower interest rates, lower than what the banks were offering at the time and being more accommodative to home buyers, the three major players especially banks were forced to lower their rates resulting to a more competitive market for homebuyers to shop for home loans.
After a thorough research and going through the various products offered by different lenders in the country, here are our top five choices, a mix of both banks and non-bank lenders.
Founded in 1911, Commonwealth Bank of Australia (CBA) is a leading bank in the Australian banking sector offering a wide range of financial products including home loans from as low as 4.39% p.a.
With a ‘can-do’ attitude and on a mission to help those who have been denied a chance elsewhere, Pepper, a global independent financial services business boasts of years of experience in the lending sector. Their experienced team is always ready to offer a listening ear, critically asses a borrowers papers on an individual basis and often times give a sounding yes where the rest would have said no. Their variable interest rates start from as low as 4.04% p.a.
Established in 2007, Ubank, an online branch of the National Australia bank Limited (NAB) offers home loans with variable interest rates from as low as 3.74% p.a. and fixed rates from 3.69%p.a.
With its humble beginnings as a cooperative society in 1924 - Newcastle and Hunter River Public Service Starr-Bowkett Building Co-operative Society Limited – that aimed at offering home ownership at the lowest cost, Greater bank, truly understands the need for competitive rates. Operating in New South Wales and South East Queensland, Greater bank offers home buyers loans with interest rates from as low as 3.59%p.a.
The home of smart money is how they are best known. After winning several awards for offering the best rates in the home loans market and the recent one being the 2017 CANSTAR 5 star rating for investor and owner occupied variable rate home loans, the had to make it to our list of top five with their current offer of 3.64%p.a.
We hope this list will help you in your search for an affordable home loan. Got more questions or need help choosing the best lender? Or for any information about home loan interest rates Australia, Give us a call at: +61 1300 874 871