Twenty-three lenders have been awarded the top rating for their variable home loans by an industry researcher and ratings agency.
CANSTAR compared cost and features across 1,869 home loans in 11 categories and ranked them based on value for money.
In its variable home loan product category, 30 products from 23 lenders achieved a five star rating.
Out these, only five were major bank home loan products – ANZ
’s Breakfree Variable, Commonwealth’s Wealth Package Standard Variable, NAB
’s Choice Package Tailored Variable and Private Tailored Variable, and Westpac’s Premium Advantage Rocket Repay Home Loan.
Yellow Brick Road’s Empower Variable loan was also included the category.
“Competition is alive and well in the home loan market, especially in the face of the current Financial System Inquiry,” said YBR executive chairman Mark Bouris
“The results shown in the ratings report tell us that non-banks can produce outstanding products that can compete alongside well established banking products. Consumers are becoming savvier and are using research services to compare home loan products. They can see the value in shopping around and looking outside the major banks.
“As non-banks such as Yellow Brick Road continue to produce better products at lower rates than what the majors can offer, market share will come up for grabs and competition will ignite.”
Products from Australian Unity Home Loans, Bank of Melbourne, BankSA, BOQ, HomeSide
DIRECT, loans.com.au, Newcastle Permanent, Pacific Mortgage Group, Qantas Credit Union, Qld Police Credit Union, Queenslanders CU, Ratebusters, SERVICE ONE Members Bank, St.George
Bank, State Custodians and UBank were also awarded five stars for outstanding value.
There were 328 products in the whole category, with 17 achieving just one star.
Newcastle Permanent Building Society came out top over all categories, with CANSTAR awarding it 18 five-star ratings.
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