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These are Australia’s 10 best home loan lenders

Lucy Dean

The Big Four banks, the Commonwealth Bank, ANZ, Westpac and NAB may hold the majority of home loans, but that doesn’t mean they’re the best, a new study by comparison provider, Canstar has revealed.

According to Canstar’s Home Loan Star Ratings 2018, smaller lenders largely offer better consumer value, based on comparative price and attached features.

At the same time, Australia’s largest banks were largely absent from the rankings, with only NAB scoring a nod for its fixed rate investment loans.

Canstar group financial services executive, Steve Mickenbecker noted that all major banks, bar NAB, recently put up their interest rates with most other banks set to follow as overseas funding costs increase.

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Also read: Here’s why Australia has one of the riskiest housing markets in the world

“The pressure will be flowing through to the profit margins and eventually most will decide to follow with rate hikes,” Mr Mickenbecker said.

“It’s a good time to at least consider fixed rate loans, future proofing repayments for two or three years while they are manageable,” he added, pointing out the current historically low rates.

Did my lender make the cut?

Canstar assessed 5,394 home loans, with only 3,192 products considered eligible for rating. Of these 3,192 products, only 355 received five stars. That’s down from 367 in March this year.

Also read: The Australian markets where house prices are falling fastest could also be those where wage growth is set to accelerate

Outstanding Value – Home Lender

  • Bank Australia

  • Freedom Lend

  • Gateway Bank

  • Greater Bank

  • Homestar Finance

  • HSBC

  • ING

  • Newcastle Permanent

  • Qudos Bank

  • RACQ

Outstanding Value – Variable Home Lender

  • AMO Group

  • Bank of Melbourne

  • BankSA

  • Easy Street Fin Services

  • Freedom Lend

  • Homestar Finance

  • HSBC

  • loans.com.au

  • Pacific Mortgage Group

  • Reduce Home Loans

Outstanding Value – Fixed Home Lender

  • Easy Street Fin Services

  • Freedom Lend

  • Greater Bank

  • HSBC

  • ING

  • Newcastle Permanent

  • Qudos Bank

  • RACQ Bank

  • Teachers Mutual Bank

  • UBank

  • UniBank

  • Investment Star Ratings

Also read: Here’s where Aussie property markets are heading now

Outstanding Value – Investment Home Lender

  • AMO Group

  • Freedom Lend

  • Homestar Finance

  • Newcastle Permanent

  • RACQ Bank

  • TicToc Home Loans

  • Virgin Money

Outstanding Value – Investment Variable Home Lender

  • AMO Group

  • Freedom Lend

  • Homestar Finance

  • loans.com.au

  • Pacific Mortgage Group

  • RACQ Bank

  • Reduce Home Loans

  • State Custodians

Outstanding Value – Investment Fixed Home Lender

  • Freedom Lend

  • Greater Bank

  • Homestar Finance

  • NAB

  • Newcastle Permanent

  • Police Bank

  • RACQ Bank

  • TicToc Home Loans

  • UBank

  • Virgin Money

Also read: Want to be rich and successful? Here’s how