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Housing, mortgage stress: the best real estate lenders revealed

Some of the best home lenders offer low interest rates and other perks. Here’s what you need to know.

Some of the top home lenders have been revealed as new research indicates many homeowners are already struggling with the announcement of interest rate hikes.

Comparison website Finder has revealed its home loan prices for 2022, with winners based on factors such as fees, size of deposit required, whether the loan has an offset account and interest rate.

Reduce Home Loans won two of the seven categories: Best Three-Year Fixed Rate Investor Home Loan and Best Variable Rate Investor Home Loan.

Macquarie Bank also won two awards: Best Variable Rate Refinance Home Loan and Best Fixed Rate Refinance Home Loan.

G&C Mutual Bank won the best low deposit variable home loan, while Beyond Bank won the best three-year fixed rate owner home loan, and Freedom Lend took home the variable rate owner occupied home loan.

“The winners are further proof that some of the best deals around don’t necessarily come from the big bank around the corner,” said Sarah Megginson, editor of Finder money.

“You don’t want to be so housing poor that you can’t afford to have fun or travel because all your money is tied up in your mortgage.”

Meanwhile, nearly one in three Australian homeowners are struggling to meet their mortgage payments, according to Finder’s consumer sentiment tracker in April.

Ms Megginson said mortgage stress would likely increase again in May and June as monthly payments increase.

“The past two years have seen record numbers of buyers entering the real estate market, but many haven’t budgeted for a rainy day,” she said.

“If you are really struggling to pay your repayments, speak to your lender immediately – they may be able to restructure your loan to relieve you.

“Refinancing your home loan is also one of the best ways to save money. The rise in the cash rate can be a good reason to lower your rate.

Finspo chief executive Angus Gilfilian told NCA NewsWire on Monday that the cost of living was a challenge for many Australians.

“To have the maximum impact on their savings, many Australians focus on their biggest household expenses, which for most homeowners is their home loan,” he said.

“Australians recognize that there are many great lenders beyond the Big Four, so it’s important to cast a wide net and compare a wide variety of products and lenders with the help of a home loan expert. .”

Mr. Gilfilian warned that lenders will not necessarily notify you personally of changes in your interest rate.

“In fact, many lenders are only required to print an ad in a national newspaper advising customers of their rate changes,” he said.

“So usually it’s up to you to track your interest rate by logging into your banking app or website and then digging around to find your loan details.”

Most lenders had so far announced their interest rate changes in line with the Reserve Bank of Australia’s 0.25% cash rate hike last week, with effective dates included between June 1 and June 1, Mr. Gilfilian said.

“However, your repayments may not change immediately, they may already be above the minimum, or your repayments may not change until after a certain period, such as on an annual loan review date,” he said. declared.

Generally, lenders offered better deals to new customers, he added.

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