Some of the best home loan lenders have been identified as new research shows that many homeowners are already struggling with the announcement of rising interest rates.
The website for comparison Finder has revealed its rewards for home loans for 2022, with the winners based on factors such as fees, required deposit size, whether the loan has a reimbursed account and interest rate.
The reduction in housing loans won in two of seven categories – the best housing loan for investors with a three-year fixed rate and the best housing loan for an investor with a variable rate.
Macquarie Bank also received two awards – Best Refinancing Home Loan Refinancing and Best Fixed Rate Refinancing Home Loan.
G&C Mutual Bank won the best low-deposit home loan, while Beyond Bank won the owner’s best home loan at a three-year fixed rate, and Freedom Lend took out a home loan to the owner at a variable rate.
“The award winners are another proof that some of the best deals on the market aren’t necessarily from a big bank around the corner,” said Finder money senior editor Sarah Meginson.
“You don’t want to be so poor that you can’t afford to have fun or travel because all your money is in your mortgage.”
Meanwhile, nearly one in three Australian homeowners struggling to repay mortgages, according to Consumer Sentiment Tracker Finder in April.
Ms. Meginson said mortgage stress is likely to rise again in May and June as monthly payments increase.
“Over the past two years, the real estate market has a record number of buyers, but many did not put in the budget for a rainy day,” – she said.
“If you are seriously struggling to afford the payments, talk to your lender immediately – they may be able to restructure your loan to ease the pain.
“Refinancing a home loan is also one of the best ways to save money. Raising your cash bid can be a good reason to lower your rate. ”
Finspo CEO Angus Gilfilyan told NCA NewsWire on Monday that the cost of living has been an issue for many Australians.
“To maximize the impact on their savings, many Australians are focusing on the biggest home costs, which for most homeowners are home loans,” he said.
“Australians recognize that there are many great lenders other than the Big Four, so it’s important to keep a wide network and compare a wide variety of products and lenders with the help of a home loan expert.”
Mr Gilfilyan warned that lenders will not necessarily give you personal messages if your interest rate changes.
“In fact, many lenders are only required to print an ad in the national newspaper to inform customers about the rate change,” he said.
“So you usually have to track your interest rate by logging into your banking program or website and then digging around to find the details of the loan.”
Most lenders have so far announced interest rate changes in line with the 0.25 per cent rate hike at the Reserve Bank of Australia last week, with the effective dates ranging from directly to 1 June, Mr Gilfilyan said.
“However, your payments may not change immediately, they may be above the minimum, or your payments may change only after a certain period of time, for example, on the date of the annual loan review,” he said.
Typically, lenders offered better deals to new customers, he added.