Exceptional Value Home Loan Prices 2022

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Canstar has named the winners of its annual Home Loan Awards for 2022. Find out which providers won and what a difference being with an award-winning provider could make.




Find out which mortgage lenders offer the best value. Source: DavideAngelini/Shutterstock.com.




In November 2020, as part of an effort to mitigate the financial impact of the COVID-19 pandemic, the Reserve Bank of Australia (RBA) fixed the official exchange rate at a historic low of 0.10 %. The RBA has remained stable since then, but this low rate cannot last forever. With a rate hike potentially imminent, potential homeowners and property investors, as well as Australians looking to refinance their existing home loans, may well be wondering which home loan providers can offer them the best value in 2022.




Canstar Home Loan Prices 2022




To help Australians choose a home loan, Canstar assessed 5,815 products from 83 home loan providers in our database. Based on this analysis, Canstar awarded 22 vendors an Exceptional Value Award.




These awards recognize lenders who deliver exceptional value to borrowers through their range of home loan products. Each product considered was evaluated based on price and features. The price score involves considerations such as interest rates and fees, while the functionality score takes into account factors such as pre-approval, recalculation and clearing facilities and the ability to split the loan so that part of the loan has a fixed rate and the rest has a fixed rate. floating rate.








Which vendors won?




There are six categories that make up the Outstanding Value – Home Loan Awards for 2022. These are the awards for Variable Home Loan, Fixed Home Loan, Home Loan, Investment Variable Home Loan, Fixed Home Loan investment company and the investment property lender.




Variable mortgage lender price




This award is given to lenders who provide exceptional value on all variable rate homeowner profiles. In alphabetical order, the winners are:




  • AMO Group
  • freedom loan
  • homeloans.com.au
  • Homestar Finance
  • Pacific Mortgage Group
  • Reduce home loans
  • TicToc real estate loans
  • Good home loans
  • court




Fixed Home Lender Pricing




This award is given to vendors who deliver exceptional value on all fixed rate homeowner profiles. In alphabetical order, the winners are:




  • Australian Mutual Bank
  • Big Bank
  • HSBC
  • Hume Bank
  • IMB
  • Pacific Mortgage Group
  • Qudos Bank
  • TicToc real estate loans
  • UBank




Home lender price




This award is given to lenders who deliver exceptional value across all homeowner profiles. In alphabetical order, the winners are:




  • AMO Group
  • Homestar Finance
  • HSBC
  • Hume Bank
  • Pacific Mortgage Group
  • Reduce home loans
  • TicToc real estate loans
  • UBank
  • Good home loans




Investment Variable Real Estate Lender Pricing




This award is given to lenders of outstanding value across all variable rate investment profiles. In alphabetical order, the winners are:




  • freedom loan
  • G&C Mutual Bank
  • homeloans.com.au
  • Homestar Finance
  • loans.com.au
  • Pacific Mortgage Group
  • TicToc real estate loans
  • Good home loans




Fixed Investment Real Estate Lender Pricing




This award is given to outstanding value lenders across all fixed rate investment profiles. In alphabetical order, the winners are:




  • Australian Mutual Bank
  • bcu
  • Big Bank
  • HSBC
  • RACQ Bank
  • Reduce home loans
  • UBank
  • Good home loans




Investment Real Estate Lender Pricing




This award is given to vendors who deliver exceptional value across all investment profiles. In alphabetical order, the winners are:




  • Big Bank
  • HSBC
  • MOVE Bank
  • Pacific Mortgage Group
  • Reduce home loans
  • Suncorp Bank
  • TicToc real estate loans
  • UBank
  • Good home loans




What difference could an award-winning supplier make?




To give you an idea of ​​how much you could save in interest, Canstar compared the interest rates of the winners with those of the other providers in our database for certain types of loans. We considered fixed and variable home loans for homeowners and investors.




Average Interest Rates of Exceptional Value Award Winners Compared to Canstar Database Average








Average winners Canstar Database Average
Variable real estate lender 1.99% 3.08%
Fixed home lender (fixed over 3 years) 2.74% 3.03%
Variable investment real estate lender 2.78% 3.40%
Fixed investment real estate lender (fixed over 3 years) 2.88% 3.26%




Source: www.canstar.com.au – 08/02/2022. Rates based on those available for a loan of $500,000 at 80% LVR, with repayment of principal and interest. Average variable rates exclude fully documented loans, variable loans with introductory periods and those exclusive to first-time home buyers. Institutions based on those included in the Canstar Home Loans Outstanding Value Awards (February 2022).




How much could an award-winning home loan save you?




We crunched the numbers and found that a three-year fixed home loan with one of our Exceptional Value Award winners could have a monthly repayment of $2,039 and a total interest cost of $39,776 on three years.




An average three-year fixed mortgage from the rest of the market could require you to make monthly repayments of $2,116 and could have a total interest cost of $44,052 over three years.




That means your average monthly repayment with an award-winning home loan could be $77 a month cheaper for a fixed three-year home loan, and could save you $4,276 over that three-year period.




Source: www.canstar.com.au. Rates in effect on 08/02/2022. Average rates based on those available for a $500,000 loan, 80% LVR and principal and interest repayments; excluding first-time buyer loans only. Institutions based on those included in the Canstar Home Loans Outstanding Value Awards (February 2022) for Homeowners. Monthly repayment and interest charges based on the average rate, a $500,000 loan repaid using principal and interest repayment over a total loan term of 30 years.




When considering home loans, it is also important to check the comparison rate. The comparison rate represents the actual cost of a home loan, when fees and charges are taken into account, and home lenders are legally required to display it alongside a product’s interest rate.




You may even find that if two home loans have comparable interest rates, one will be cheaper if the comparison rate is lower, so for this reason it is worth checking the comparison rate of any loan. to find out if you are getting the best. OK.




Cover image source: DavideAngelini/Shutterstock.com.





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