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Australia’s top 5 finest mortgage rates

Hiring a mortgage broker may help you find the best deal that fits perfectly with your budget.

When planning to apply for a mortgage, we always look into details, especially regarding the rates and fees. We don’t want to pay more on hidden charges, so we become very vigilant when it comes to the costs in our mortgage.

Hiring a mortgage broker may help you find the best deal that fits perfectly with your budget. If you’re curious about the process of hiring a mortgage broker, you can check out https://darwinbroker.com.au/

The Role Of A Mortgage Broker

If you are not sure about the type of mortgage you should get or want to land a good mortgage deal, then you should hire a mortgage broker. Listed below are the roles and tasks that your mortgage broker can do for you.

  • Brokers know a lot of lenders and can find you a perfect lender based on your situation and budget. They will act as the middleman between you and your lender throughout the process, so you don’t have to settle the negotiation yourself.
  • They can find the best option for you and your budget. Brokers have access to all possible plans that can help you save more money. They are knowledgeable of the offers lenders could give, and can also ask them to waive some fees for you. 
  • One day of processing your mortgage is not enough, so doing it alone can take you days to finish. This can get in the way of your life’s daily routine. By having a broker, you will be spared from all of the hassles. Your broker will gladly handle the process for you. 
  • Your credit rating may also benefit from having a broker. In the event that a lender will decline your application, it will show on your credit report. However, a broker can secure your anonymity during mortgage shopping and spare your credit report from any possible records of rejection. 
  • Brokers will handle all the paperwork during the mortgage application process. Your only role is to provide them with the necessary documents for the application. Their years of experience can help you immediately settle everything with your lender.
  • Brokers are trained to help those who have limited knowledge with the mortgage process and ensure that they experience a smooth mortgage application process. With their years of experience, it is safe to say that they are already an expert in this field. They know about all the ins and outs of a mortgage more than anyone you can think of. 

Now that you already know what a mortgage broker can do for you,  you can now decide if you’re better off doing it by yourself, or if it’s better if you are going to hire a professional make the process easier. Sure, you can do it on your own, but you will not have the knowledge and the access that a broker has. 

Top 5 Best Mortgage Rates

There are lots of banks and lending companies that offer a reasonable rate for their borrowers. Check out this list of the top 5 best mortgage rates in Australia to give you an insight. Aside from the mortgage rates, each lender’s real-time ratings and other relevant information will also be mentioned below.

  1. Reduce Low Rider Home Loan. With an advertised rate of 2.44%pa and a comparison rate of 2.47%pa, Reduce Low Rider Home Loan is the lowest amongst 47 home loan offers. They have a real-time rate of 4.36 out of 5 stars. There will be no ongoing fees charged and offers a free redraw facility. Its maximum Loan-to-Value ratio is 80%. The rate provided is variable.
  2. Star Essentials Home Loan. Having an advertised rate of 2.49%pa and a comparison rate of 2.52%pa, Star Essentials Home Loan comes second in the list. With a real-time rating of 4.36 out of 5, the loan offers a variable rate and a Loan-to-Value ratio of 80%. Just like the Low Rider Home Loan, they don’t charge ongoing fees and come with a free redraw facility. 
  3. Smart Home Loan. Being the third on the list, Smart Home Loan has an advertised rate of 2.53%pa and a comparison rate of 2.55%pa with a variable rate structure. It also has an 80% Loan-to-Value Ratio, with no ongoing fee charges and a free redraw facility. This loan plan is almost similar to the loans in numbers 1 and 2. It also has an equal real-time rating of 4.36 out of 5 with the top 2 lenders. 
  4. Yard Home Loan. The fourth-best rate in Australia, Yard offers a 2.66%pa advertised rate and a 2.69%pa comparison rate under the variable rate structure. They’re also offering a fixed rate structure with a minimum of 1 year and a maximum of 5 years repayment period. They have the highest real-time ratings, with 4.50 out of 5 stars. It has no ongoing fees, and you can even sign your parents as guarantors. They also offer an 80% Loan-to-Value Ratio.
  5. Macquarie Basic Home Loan. This Bank offers a fixed interest rate structure with three years repayment period and a Loan-to-Value Ratio of 70%. Macquarie provides two kinds of home loan: the Basic and the Offset. Their Basic Home Loan has a lower comparison rate than the Offset and offers an advertised percentage of 2.84%pa and a comparison rate of 2.84%pa. Macquarie also has a low real-time rating, with 4.04 out of 5 stars. 

Having a broker with vast knowledge about the best mortgage rates in your country can make you feel secure with your mortgage plan. You can mention these lenders to your broker and see what they can say about it. Your broker might already have one of them in mind.

Takeaway

Don’t just rush into applying for a mortgage without knowing anything about the process. Having someone like a broker that knows what they’re doing will benefit you. But do not forget to do your research and decide if an offer leans in your favor. There is nothing wrong with being careful, especially if it involves the money we’ve worked so hard to earn. 

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