Money names the Best-Value Flexible Home Loans for 2022

Signing up to a flexible-rate home loan at the moment might seem like a bad idea given the likelihood of increases to the cash rate, but until recently the Reserve Bank has said this won't happen until 2024.

It's softened that guidance, but it would be a huge leap for there to be big increases to the cash rate between now and the end of 2023.

In any case, research suggests that choosing either a fixed rate or variable rate won't make all that much difference over the lifetime of the loan. But that doesn't mean you shouldn't shop around for the best deal, whichever way you go.

Flexible-rate loans also tend to come with more features and offer greater flexibility. On the other hand, they make budgeting harder.

They have been ranked by the variable comparison rate for a $400,000 owner-occupied, principal and interest mortgage over 25 years with a loan to value ratio (LVR) of at least 80%. They must offer redraw, offset, portability and splitting.

The G&C Mutual Bank Momentum home loan has come up trumps in the bank category for another year, with a comparison rate of 2.21%, no establishment fee, 100% offset account, redraw and unlimited extra repayments. It requires a maximum LVR of 80%, or 95% with lenders mortgage insurance.

Among the major banks, Macquarie's Offset Home Loan upped its place from second last year to first this year. It has a comparison rate of 2.52%, which is higher than the other two categories. 
Macquarie's offset account is what stands out.

You can open up to 10 offset accounts per loan account, get a linked debit Mastercard for everyday transacting, and free use of ATMs domestically and internationally. It will also waive the annual credit card fee.

Top spot among the non-banks was snagged by Freedom Lend, which also improved from second spot last year. Its variable loan offers the most competitive rate across all three categories at 2.14%.

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