Home loan products rated on Canstar

by Rebecca Pike15 Sep 2018

Financial comparison site Canstar has released the latest star ratings for home loans.

Its star rating system is designed to help customers assess products and is based on a methodology comparing price and features.

A total of 5,394 home loan products were considered in the latest research and 3,192 of these met the rating eligibility criteria. Of those loans, only 10% achieved a 5-star rating.

The rating comes at a time when everyone is watching the lenders to see if they make any more moves on interest rates.

Canstar Group’s finance expert, Steve Mickenbecker suggested it might be a good time for borrowers to consider fixing rates before any further rises.

He said, “Not all lenders have put up their rates yet, but most rely on wholesale funding to some degree and will be feeling the pressure of the increasing costs of those funds. The pressure will be flowing through to the profit margins and eventually most are likely to follow with rate hikes.”

Home loan products awarded with a 5-Star Rating have been assessed as offering outstanding value in each profile.

In the owner occupier space, the home lenders rated as providing outstanding value are: Bank Australia; Freedom Lend; Gateway Bank; Greater Bank; Homestar Finance; HSBC; ING; Newcastle Permanent; Qudos Bank and RACQ.

Variable home lenders providing outstanding value in the owner occupier space are: AMO Group; Bank of Melbourne; BankSA; Easy Street Fin Services; Freedom Lend; Homestar Finance; HSBC; loans.com.au; Pacific Mortgage Group and Reduce Home Loans.

Fixed home lenders providing outstanding value in the owner occupier space are: Easy Street Fin Services; Freedom Lend; Greater Bank; HSBC; ING; Newcastle Permanent; Qudos Bank; RACQ Bank; Teachers Mutual Bank; UBank and UniBank.

In the investment space, the investment home lenders offering outstanding value are: AMO Group; Freedom Lend; Homestar Finance; Newcastle Permanent; RACQ Bank; TicToc Home Loans and Virgin Money.

The investment variable home lenders offering outstanding value are: AMO Group; Freedom Lend; Homestar Finance; loans.com.au; Pacific Mortgage Group; RACQ Bank; Reduce Home Loans and State Custodians.

The investment fixed home lenders offering outstanding value are: Freedom Lend; Greater Bank; Homestar Finance; NAB; Newcastle Permanent; Police Bank; RACQ Bank; TicToc Home Loans; UBank and Virgin Money.

Lenders offering outstanding value for lines of credit are: Aussie; BankVic; Greater Bank; State Custodians and Suncorp Bank.

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