How to find the best mortgages in January 2019

Choosing the best mortgage is all about knowing what to look for.

Your mortgage will most likely be the single biggest financial commitment you ever make, so it’s important to get it right.

Choosing the best mortgage comes down to educating yourself on the factors that influence a home loan’s value. The process may seem intimidating, but once you know what to look for you can compare and choose the best mortgage with confidence. Read on to learn more or start comparing in the table below.

Compare some of Australia's best mortgages*

Rates last updated January 20th, 2019
$
Loan purpose
Offset account
Loan type
Repayment type
Your filter criteria do not match any product
Name Product Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment Short Description
3.59%
3.61%
$0
$0 p.a.
90%
Get a low interest rate loan with no ongoing fees. Plus you can make extra repayments and free redraw online. Available with just a 10% deposit.
3.59%
3.59%
$0
$0 p.a.
80%
Enjoy flexible repayments, a redraw facility and the ability to split your loan. Plus, pay no application or ongoing fees.
3.64%
3.66%
$0
$0 p.a.
80%
A simple mortgage with a competitive interest rate and no application or monthly fees. Borrow up to $2000000 from a convenient online lender.
3.59%
3.63%
$0
$0 p.a.
90%
Get a low variable interest rate and buy a property with just a 10% deposit. 100% offset account attached.
3.69%
3.72%
$445
$0 p.a.
90%
NSW and ACT customers only. Get a special discount for a limited time when you open an IMB Transaction Account.
3.49%
4.57%
$0
$395 p.a.
90%
Loans over $150000 get a discount off an already low fixed rate. Available for NSW, QLD and ACT residents only.
3.64%
3.64%
$0
$0 p.a.
70%
A low interest rate home loan with no application or ongoing fees.
3.75%
3.75%
$0
$0 p.a.
70%
A simple mortgage with no application or ongoing fees that has extra repayments plus split and redraw options. Requires a 30% deposit.
3.74%
4.49%
$445
$6 monthly ($72 p.a.)
90%
NSW and ACT customers only. 3 years fixed interest terms and free access to redraw facility online.
3.73%
3.87%
$0
$10 monthly ($120 p.a.)
80%
Earn Velocity Frequent Flyer Points with this mortgage to spend on flights and more (for a limited time, subject to eligibility requirements). Redraw facility available on this variable rate home loan. Competitive interest rate.
3.79%
3.79%
$0
$0 p.a.
80%
Access an offset account and pay no application or ongoing fees on this special variable rate for owner-occupiers.
3.80%
4.05%
$0
$0 p.a.
70%
Earn tens of thousands of Qantas Points to spend on flights, hotels and more with this variable owner occupier mortgage. Competitive variable rate mortgage that requires a 30% deposit.
3.74%
4.13%
$0
$349 p.a.
90%
Get a sharp rate plus package discounts and a 100% offset account.
3.84%
3.84%
$0
$0 p.a.
80%
Pay no application or ongoing fees and get access to a free redraw facility with this innovative online lender.
3.85%
3.85%
$0
$0 p.a.
80%
Low fee loan with extra repayments. Pay no application and ongoing fees and take advantage of split and redraw options.
3.67%
3.72%
$600
$0 p.a.
80%
Family guarantee option available. Enjoy flexible repayments and a low minimum loan amount.
3.68%
3.70%
$0
$0 p.a.
80%
A competitive variable rate mortgage for owner occupiers that comes with a no fee debit card with a $5,000 limit.
3.72%
3.72%
$0
$0 p.a.
110%
Pay no deposit or LMI and get a discounted rate with this family pledge loan. Requires a family member to act as guarantor. NSW, Qld and ACT only.
3.79%
4.22%
$0
$395 p.a.
80%
Unlock a range of savings with this competitive package home loan offer. Offset account and redraw facility included.
3.69%
3.83%
$0
$10 monthly ($120 p.a.)
80%
Earn Velocity Frequent Flyer Points on your mortgage (subject to eligibility requirements). Plus, access a 100% offset account to save on interest.
3.72%
3.74%
$0
$0 p.a.
80%
Save on interest by taking advantage of a 100% offset account along with no ongoing fees or application fees.
3.83%
4.89%
$0
$395 p.a.
80%
A flexible 3 year fixed rate loan you can use to buy your own home.
3.82%
3.93%
$0
$10 monthly ($120 p.a.)
90%
Get Velocity Frequent Flyer Points at settlement, monthly and every three years, plus the option to make up to $10,000 a year in extra repayments.
3.59%
3.58%
$0
$0 p.a.
80%
Apply online and get fast approval for this fixed rate, low-fee loan with redraw facilities. Add a 100% offset account for a small fee.
3.85%
4.69%
$0
$0 p.a.
90%
A package home loan with a sharp fixed rate and a 10% deposit option for low deposit borrowers.
3.70%
3.90%
$0
$0 p.a.
70%
Enjoy all the benefits of the Basic Home Loan and take advantage of an offset account.
3.89%
4.27%
$0
$395 p.a.
80%
New borrowers or refinancers can get a discounted rate with this package loan.
3.84%
3.82%
$0
$0 p.a.
80%
A fixed rate loan with free redraws, few ongoing fees. Apply online with a fast approval process.
3.89%
3.94%
$0
$0 p.a.
80%
Pay no application or ongoing fee and borrow up to 80% LVR.
3.75%
4.00%
$0
$248 p.a.
70%
Borrowers with a 30% deposit can get this competitive rate. Cut down on interest costs with a 100% offset account.
3.69%
4.75%
$0
$395 p.a.
90%
Enjoy a competitive rate with no application fee for this package loan.
4.04%
4.07%
$0
$0 p.a.
90%
For a limited time, pay no application or settlement fees. You can also take advantage of a free redraw facility.
3.97%
3.99%
$0
$0 p.a.
80%
Package your owner occupied loan with investment loan and receive a discounted investment rate. 100% offset account included.
3.89%
3.91%
$0
$0 p.a.
80%
This variable rate loan keeps the features simple and fees low. This loan is offered by a 100% online lender.
3.94%
3.94%
$0
$0 p.a.
70%
Investors with a 30% deposit can get this low rate loan to fund their property portfolio. Take advantage of split and redraw facilities.
3.99%
3.95%
$0
$0 p.a.
90%
Borrow up to 90% of the value of the property you're buying, and pay no application fee.
4.18%
4.18%
$0
$0 p.a.
80%
Investors get a 100% offset account and pay no application or ongoing fees on this loan from an innovative online lender.
3.72%
3.72%
$0
$0 p.a.
90%
New customers can get a discounted variable rate and a fee-free redraw facility. NSW, QLD and ACT residents only.
3.69%
4.08%
$0
$349 p.a.
90%
Package your loan with other AMP products and save on rates and fees.
3.94%
4.95%
$595
$0 p.a.
95%
Borrow up to 95% LVR of the value of the property you're buying and pay no application or ongoing fees.
3.99%
3.99%
$0
$0 p.a.
80%
Get a discounted, low-fee investor loan from a convenient online lender. 20% deposit required.
3.70%
3.70%
$0
$0 p.a.
70%
Get a discount for keeping your LVR at $70% or below with this innovative online lender.
3.99%
4.86%
$0
$0 p.a.
80%
Access a fee-free 100% offset account and pay no application or ongoing fees.
3.99%
4.62%
$395
$0 p.a.
80%
Investors can enjoy flexible repayments and an easy application process with this pioneering online lender.
3.74%
4.55%
$0
$395 p.a.
90%
A fixed rate loan with a 100% offset account and the option to make additional repayments. Loans over $150000 receive a discounted rate. NSW, QLD and ACT residents only.
3.87%
3.91%
$600
$0 p.a.
95%
A home loan with no ongoing fee and a redraw facility that you can borrow up to 95% LVR.
4.29%
4.26%
$0
$0 p.a.
95%
A competitive 3-year fixed rate loan with a high max insured LVR.
3.69%
4.86%
$0
$395 p.a.
90%
Special discounted rate for first home buyers. Start your home buying journey with 2 years of fixed repayments at a competitive rate plus package discounts. Available with a 10% deposit.

Compare up to 4 providers

* The offers compared on this page are chosen from a range of products finder.com.au has access to track details from and is not representative of all the products available in the market. Products are displayed in no particular order or ranking. The use of the term "Best" is not a product ratings and is subject to our disclaimer. You should consider seeking independent financial advice and consider your personal financial circumstances when comparing products.

What’s the best mortgage for me?

The best mortgage for you depends largely on your circumstances and goals, but there are a few factors to consider. These factors will determine how well a home loan product suits you.

Interest rates

Interest rate is the home loan feature most people pay attention to when deciding the best mortgage for them. This is no surprise, because your mortgage interest rate is the single biggest factor determining the price you’ll pay over the life of your home loan.

It’s easy to compare mortgages by interest rate, but you’ll have to dig a bit deeper to determine if a home loan product is the best mortgage for you. There are a few things you’ll have to keep in mind.

Fixed or variable?

When you’re deciding on a mortgage, one of the first decisions you’ll need to make is whether to choose a fixed or a variable interest rate.

A fixed rate is locked in for a predetermined period of time, generally from one to five years. During this time, your rate will remain the same even if interest rates in the broader market fluctuate.

This means your repayments won’t change, which makes budgeting for your mortgage repayments simple. However, it also means you won’t benefit from any rate cuts. You also won’t be able to exit your home loan before the fixed rate period ends, unless you pay some significant break costs.

A variable rate mortgage is one in which the rate can change at any time. Rates change for a variety of reasons, including bank funding costs, the monthly Reserve Bank cash rate decision and competitive pressures.

Variable rate home loans mean you’ll see your repayments reduce if interest rates fall, but you’ll see them increase should rates rise. These loans do tend to offer more flexibility, however, and allow you the option to refinance without paying break costs.

There’s no right or wrong answer with fixed versus variable loans. It all depends on your own goals and priorities.

Watch: fixed versus variable loans explained

Pay attention to the comparison rate

When you’re comparing mortgage interest rates, make sure to have a good look at the comparison rate. A comparison rate gives a clearer indication of what you’ll actually pay for a home loan.

A comparison rate takes the loan’s interest rate, adds in fees and then expresses this as a percentage. Some loans with an attractive-looking interest rate could actually carry high ongoing fees, meaning they’re not the great deal they appear to be at first glance. Paying attention to the comparison rate will give you a clearer picture of a mortgage product’s true value, and help you avoid nasty surprises.

Look for revert rates

Some mortgage products also advertise rock-bottom interest rates for a limited time before reverting to a higher rate. These loans are often called introductory rate home loans.

This doesn’t mean you should avoid introductory rate home loans. They can be great mortgage products with incredibly low rates. It does mean, however, that you’ll want to pay attention to what’s known as the revert rate.

The revert rate is the higher interest rate the loan will revert to when the introductory period ends. You should be able to find this rate in a home loans key facts sheet, or you can ask your lender.

One way to get a good idea of an introductory rate home loans revert rate is to pay attention to the comparison rate. The comparison rate takes into account the loan’s revert rate. That means if you find an introductory rate home loan with a comparison rate much higher than the advertised rate, you can be fairly certain it will revert to a high rate at the end of the introductory period.

Features

The best mortgage for you could also be one that includes helpful features. Home loans aren’t all created equal, and some offer features that can give you much more control over your mortgage.

For instance, an offset account allows you to reduce the amount of interest you pay, and potentially shave years off your mortgage. It does this by providing a linked transaction account that offsets your home loan balance. This means that if you have a $500,000 home loan with $50,000 in an offset account, you’re only charged interest on $450,000.

A redraw facility allows you to access any additional funds you’ve paid on your mortgage. If you’ve managed to make extra repayments and gotten yourself ahead, a redraw facility will allow you to withdraw those funds.

A split facility can also be a handy feature to give you access to more than one mortgage product. A split facility allows you to split your mortgage between different products. For example, you could choose to have a portion of your home loan on a fixed rate and a portion on a variable interest rate.

Features can help you take more control of your mortgage, and can save you some serious money in the long-term. However, many of these features also come with associated fees. Before choosing a mortgage packed with features, make sure you’ll actually use the features you’re paying for.

Comparing the best mortgages

Now that you know what to look for, you can compare mortgages to find the best mortgage for you. Take the time to look for mortgage products that offer the right mix of rates and features to suit your situation and help you achieve your financial goals.

Use the table above to compare mortgages, and you’ll be well on your way to finding the right product for you.

Not what you're looking for? Compare more home loans here

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Home Loan Offers

Important Information*
UBank UHomeLoan Variable Rate - Discount offer for Owner Occupiers, P&I Borrowing over $200,000

Take advantage of a low-fee mortgage with a special interest rate of just 3.59% p.a. and a 3.59% p.a. comparison rate.

HSBC Home Value Loan - (Owner Occupier P&I)

Get a low interest rate loan with no ongoing fees. Plus you can make extra repayments and free redraw online. Available with just a 10% deposit.

loans.com.au Essentials - Variable (Owner Occupier, P&I)

A competitive interest rate home loan with interest only options. Interest rate 3.64% p.a.
comp rate of 3.66% p.a.

Tic:Toc Live in Loan Variable Rate - Principal & Interest

Get a very low interest rate and avoid big fees. Apply online for full approval in under 30 minutes and add a 100% offset account for $10 a month.

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