Most Australians rely on mortgages whether they are buying their first home or investing in commercial properties. When shopping for a home or an investment property, one thing on top of your mind is finding a mortgage that will fit into your budget.
When you are looking for a perfect mortgage lender in Australia, you may want to do some legwork first to have a better understanding of who offers the best home loan interest rates in the market. Even though interest rates play a major role in your decision making, there is more you need to put into consideration like how long the lender has been in operation, their loan terms and how reputable the said institution is. Depending on the lender and how credit worth you are, are you going to get the best deal or an expensive loan?
1. ANZ Bank : With a history that spans back to 1835 and voted winner of the mortgage lender of the year award and CANSTAR Bank of the year for first home buyers in Australia in 2015. If you are looking for a fixed rate home loan, expect to pay 4.74% for a five year term and 4.44% for a three year term. If you are looking for a simple standard variable rate home loan, expect to pay 5.56%.
2. Adelaide Bank : Ranked among the top six banks in Australia in terms of capitalization, securing a mortgage with this particular lender means you are in good hands for no mortgage list would be complete without mentioning Adelaide bank. So what are their variable rates? For investment properties, the interest rate is 4.71% while owner occupied homes the rate is 4.26%. If you are looking for a fixed rate home loan, the rates are 4.59% for owner occupied property while investment properties attract 4.69% interest rate for their SmartFix 5 year term.
3. Heritage Bank : With a heritage that spans over 135 years, if you are looking for a bank that puts their customer’s needs first and is well established, Heritage Bank is there for you. With variable rate home loans starting from 4.08% while their fixed rate interest rates start at 4.29%. You know you are in for a good deal with this bank. However, you may need to inquire from the bank on their investment properties interest rates.
4. HSBC : Standard variable rate of 5.60% for owner occupied investment property at 5.87%. HSBC offers fixed rate home loans at different rates, you get to choose your rate which varies depending on the term you choose.For owner occupier :
Greater Building Society :
Effective February 24th 2016, GBS offers variable interest rates at 4.24% while their three year fixed rates for as low as 3.99%.
One other thing to consider as you shop around for a mortgage lender match is the application fees which can up to $600 or more.