Which home loan providers offer outstanding value in 2022?

Canstar has named the winners of its annual Home Loan Awards for 2022. Find out which providers won and what difference being with an Award-winning provider could make.

In November 2020, as part of an effort to mitigate the financial impact of the COVID-19 pandemic, the Reserve Bank of Australia (RBA) set the official cash rate at a historically low 0.10%. The RBA has held steady since then, but this low rate can’t last forever. With a rate increase potentially looming, prospective owner occupiers and property investors, as well as Aussies looking to refinance their existing home loans, may well be wondering what home loan providers can provide them with the best value for money in 2022.

Canstar Home Loan Awards 2022

To help Aussies choose a home loan, Canstar has assessed 3,143 products from 83 home loan providers on our database. Based on this analysis, Canstar has given 22 providers an Outstanding Value Award.

These Awards recognise the lenders that provide Outstanding Value to borrowers through their suite of home loan products. Each product considered has been assessed based on price and features. The Price Score involves considerations such as interest rates and fees, while the Feature Score considers factors such as pre-approval, redraw and offset facilities and the ability to split the loan so a portion of the loan has a fixed rate and the rest has a variable rate.

For more information on how Canstar’s Home Loan Awards are determined, view the methodology report.

Which providers won?

There are six categories that make up the Outstanding Value – Home Loan Awards for 2022. These are the Awards for Variable Home Lender, Fixed Home Lender, Home Lender, Investment Variable Home Lender, Investment Fixed Home Lender and Investment Home Lender.

Variable Home Lender Award

This Award is given to lenders that offer Outstanding Value across all owner occupier variable rate profiles. In alphabetical order, the winners are:

• AMO Group
• Freedom Lend
• homeloans.com.au
• Homestar Finance
• Pacific Mortgage Group
• Reduce Home Loans
• Tic:Toc Home Loans
• Well Home Loans
• Yard

Fixed Home Lender Award

This Award is given to providers who offer Outstanding Value across all owner occupier fixed rate profiles. In alphabetical order, the winners are:

• Australian Mutual Bank
• Greater Bank
• HSBC
• Hume Bank
• IMB
• Pacific Mortgage Group
• Qudos Bank
• Tic:Toc Home Loans
• UBank

Home Lender Award

This Award is given to lenders that offer Outstanding Value across all owner occupier profiles. In alphabetical order, the winners are:

• AMO Group
• Homestar Finance
• HSBC
• Hume Bank
• Pacific Mortgage Group
• Reduce Home Loans
• Tic:Toc Home Loans
• UBank
• Well Home Loans

Investment Variable Home Lender Award

This Award is given to Outstanding Value lenders across investment variable rate profiles. In alphabetical order, the winners are:

• Freedom Lend
• G&C Mutual Bank
• homeloans.com.au
• Homestar Finance
• loans.com.au
• Pacific Mortgage Group
• Tic:Toc Home Loans
• Well Home Loans

Investment Fixed Home Lender Award

This Award is given to Outstanding Value lenders across investment fixed rate profiles. In alphabetical order, the winners are:

• Australian Mutual Bank
• bcu
• Greater Bank
• HSBC
• RACQ Bank
• Reduce Home Loans
• UBank
• Well Home Loans

Investment Home Lender Award

This Award is given to providers who offer Outstanding Value across all investment profiles. In alphabetical order, the winners are:

• Greater Bank
• HSBC
• MOVE Bank
• Pacific Mortgage Group
• Reduce Home Loans
• Suncorp Bank
• Tic:Toc Home Loans
• UBank
• Well Home Loans

What difference could an Award-winning provider make?

To give you an idea of how much you could save in interest, Canstar has compared the interest rates of the Award winners against the other providers on our database for some example loan types. We have considered fixed and variable home loans for owner occupiers and investors.

Average interest rates of Outstanding Value Award winners compared to Canstar’s database average

← Scroll to view →

How much could an Award-winning home loan save you?

We ran the numbers and found that a three-year fixed home loan with one of our Outstanding Value Award winners might have a monthly repayment of $2,039, and a total interest cost of $39,776 over three years.

An average three-year fixed home loan from the rest of the market might see you making monthly repayments of $2,116, and might have a total interest cost of $44,052 over three years.

This means that your average monthly repayment with an Award-winning home loan could be $77 per month cheaper for a three-year fixed home loan, and could see you saving $4,276 in that three-year period.

Source: www.canstar.com.au. Rates current as of 08/02/2022. Average rates based on those available for a loan of $500,000, 80% LVR and principal and interest repayments; excluding first home buyer only loans. Institutions based on those included in the Canstar Home Loans Outstanding Value Awards (Feb 2022) for owner occupiers. Monthly repayment and interest costs based on the average rate, a $500,000 loan repaid using principal & interest repayment over a total loan term of 30 years.

When considering home loans, it is also important to check the comparison rate. The comparison rate represents the true cost of a home loan, when fees and charges are taken into account, and home loan lenders are legally required to display it alongside a product’s interest rate.

You may even find that, if two home loans have comparable interest rates, one will be cheaper if the comparison rate is lower, so for this reason, it is worth checking the comparison rate of any loan to find out if you are getting the best deal.

Cover image source: DavideAngelini/Shutterstock.com.