How to find the cheapest home loan rate

Want to save thousands of dollars over the life of your loan? Here are five ways to find a cheaper* home loan.

By looking carefully at your home loan's interest rate, fees, features and repayment structure, you can find many ways to save. This page will give you general advice on getting the cheapest loan for your situation. You can also start comparing loans for yourself in the table below.

UBank UHomeLoan Value Offer

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

3.59 % p.a.

variable rate

3.59 % p.a.

comparison rate

UBank UHomeLoan Value Offer

Take advantage of this low rate special offer, plus flexible repayments, a redraw facility and the ability to split your loan. Pay no application or ongoing fees.

  • Interest rate of 3.59% p.a.
  • Comparison rate of 3.59% p.a.
  • Application fee of $0
  • Maximum LVR: 80%
  • Minimum borrowing: $200,000
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Rates last updated August 20th, 2018
$
Loan purpose
Offset account
Loan type
Your filter criteria do not match any product
Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment
UBank UHomeLoan Variable Rate - Discount offer for Owner Occupiers, P&I Borrowing over $200,000
Special discounted interest rate
Enjoy flexible repayments, a redraw facility and the ability to split your loan. Plus, pay no application or ongoing fees.
3.59% 3.59% $0 $0 p.a. 80% Go to site More info
Tic:Toc Live in Loan Variable Rate - Principal & Interest
Get approved faster with a speedy online application
Low interest rate and limited fees. Add a 100% offset account for $10 a month.
3.64% 3.65% $0 $0 p.a. 80% Go to site More info
loans.com.au Essentials - Variable (Owner Occupier, P&I)
Competitive interest rate and limited fees
A simple mortgage with a competitive interest rate and no application or monthly fees. Borrow up to $2 million from a convenient online lender.
3.64% 3.66% $0 $0 p.a. 80% Go to site More info
ME Flexible Home Loan With Member Package - LVR <=80% $400k up to $699,999 (Owner Occupier, P&I)
Save on interest with a 100% offset account
Unlock a range of savings with this competitive package home loan offer. Offset account and redraw facility included.
3.69% 4.11% $0 $395 p.a. 80% Go to site More info
Virgin Reward Me Variable Home Loan - LVR <= 80% ($500k to $750k Owner Occupier, P&I)
Earn Velocity Frequent Flyer Points with this mortgage to spend on flights and more (subject to eligibility requirements). Redraw facility available on this variable rate home loan. Competitive interest rate.
3.68% 3.82% $0 $10 monthly ($120 p.a.) 80% Enquire now More info
3.72% 4.10% $0 $395 p.a. 80% Go to site More info
ClickLoans The Online Home Loan - LVR <70%
Get a discount for keeping your LVR at 70% or below with this innovative online lender.
3.70% 3.70% $0 $0 p.a. 70% Go to site More info
Mortgage House Affordable First Home Buyer Special (Owner Occupier, P&I)
A competitive interest rate for first home buyers that keeps fees low. You will need a 20% deposit and can borrow up to 500000.
3.64% 3.68% $0 $0 p.a. 80% Enquire now More info
Homestar Finance Variable Rate Home Loan - Owner Occupier ($900 cashback)
$900 cashback offer on settlement
Get a competitive rate, save on fees and access a 100% offset account plus redraw facility.
3.54% 3.59% $0 $0 p.a. 80% Go to site More info
Yellow Brick Road Rate Smasher Home Loan
A low interest rate home loan with no application or ongoing fees.
3.64% 3.64% $0 $0 p.a. 70% Enquire now More info
Bankwest Complete Home Loan Package Fixed - 2 Year Fixed Rate LVR <90% (Owner Occupier, P&I & $200k+)
Lock in a very competitive 2 year rate and get package discounts on your credit card and offset account.
3.88% 4.40% $0 $395 p.a. 90% Go to site More info
Virgin Reward Me Variable Home Loan - LVR <= 80% ($750k+ Owner Occupier, P&I)
Earn thousands of Velocity Frequent Flyer Points on your mortgage (subject to eligibility requirements). Plus, access a 100% offset account to save on interest.
3.64% 3.78% $0 $10 monthly ($120 p.a.) 80% Enquire now More info
ClickLoans The Online Home Loan - LVR <70% with Offset
Requires a 30% deposit
Enjoy all the benefits of the Basic Home Loan and take advantage of an offset account.
3.70% 3.90% $0 $0 p.a. 70% Go to site More info
Macquarie Bank Basic Home Loan - LVR up to 70% (Owner Occupier, P&I)
This sharp rate product requires a 30% deposit
Pay no application or ongoing fees and get a flexible loan with the ability to split up to 6 times.
3.75% 3.75% $0 $0 p.a. 70% Enquire now More info
Bankwest Complete Home Loan Package Fixed - 3 Year Fixed Rate LVR <90% (Owner Occupier, P&I & $200k+)
Take advantage of a low 3 year fixed rate, 40% offset account and no application fee.
3.98% 4.41% $0 $395 p.a. 90% Enquire now More info
Bank Australia Basic Home Loan - Special LVR <80% (Owner Occupier)
Sharp interest rate and low fees
This special rate mortgage has no ongoing fees and offers flexible repayments. Save $595 in establishment fees before 30 September.
3.65% 3.66% $0 $0 p.a. 80% Go to site More info
HSBC Premier Standard Variable Loan (Owner Occupier, P&I)
Cut down on interest payments with a 100% offset account
Package your loan and get an interest rate discount and help from an HSBC relationship manager. Low fees help you save even more.
3.69% 3.70% $0 $0 p.a. 90% Go to site More info
ClickLoans The Online Home Loan - LVR <80%
Low fee online mortgage
Pay no application or ongoing fees and get access to a free redraw facility with this innovative online lender.
3.84% 3.84% $0 $0 p.a. 80% Go to site More info
CUA Balanced Variable Home Loan - New Lending only (Owner Occupier, P&I)
Competitive interest rate and low fees. Available with a 10% deposit. Partial offset account attached (offset up to $15,000).
3.65% 3.66% $0 $0 p.a. 90% Go to site More info
3.59% 4.74% $0 $395 p.a. 90% Go to site More info
3.75% 4.00% $0 $248 p.a. 70% Enquire now More info
Mortgage Choice Basic Variable Rate - OO LVR <= 70% ($150k +) P&I Only
A basic variable home loan that offers a competitive interest rate with no application fees and no ongoing fees.
3.64% 3.64% $0 $0 p.a. 70% Enquire now More info
RACQ Mortgage Saver Special Home Loan
A low deposit mortgage with a competitive rate and plenty of flexibility. QLD residents only. Eligible borrowers can get a 15% discount on home and contents insurance for the life of their loan.
3.62% 3.62% $0 $0 p.a. 95% Go to site More info
loans.com.au Offset Variable - Up to 80% LVR (Owner Occupier P&I)
100% offset account and a 10% deposit option
Save on interest by taking advantage of a 100% offset account along with no ongoing fees or application fees.
3.72% 3.74% $0 $0 p.a. 80% Go to site More info
Bankwest Complete Home Loan Package Variable - LVR <=90% (Owner Occupier, P&I)
Get this loan with a 10% deposit
Package your loan with an eligible credit card for discounts on rates and fees, and get a 100% offset account.
3.70% 4.13% $0 $395 p.a. 90% Go to site More info
Heritage Bank Discount Variable Home Loan - LVR <=80% (Owner Occupier) New Customers Only
Low interest rate for new customers
Family guarantee option available. Enjoy flexible repayments and a low minimum loan amount.
3.67% 3.69% $600 $0 p.a. 80% Go to site More info
Macquarie Bank Basic Home Loan - LVR ≤ 80% (Up to $750,000 Owner Occupier, P&I)
Flexible, low fee mortgage
Pay no application and ongoing fees with Macquarie Bank Basic Home Loan. Split and redraw facilities included.
3.85% 3.85% $0 $0 p.a. 80% Enquire now More info
Tic:Toc Live in Fixed Rate Home Loan - 1 Year (Owner Occupier, P&I)
Fast online application
Apply online for this fixed rate, low-fee loan with redraw facilities and an optional offset account.
3.64% 3.79% $0 $0 p.a. 80% Go to site More info
Bank First First Rate Home Loan - LVR < 80%
Low fees and low interest rate
A competitive variable rate for borrowers with a 20% deposit or more. Guarantor option available.
3.64% 3.69% $600 $0 p.a. 80% Go to site More info
Mortgage Choice Plus Home Loan - OO LVR <=80% ($150k+) P&I Only
A home loan with a competitive rate and plenty of handy features. This product comes with a 100% offset account.
3.81% 3.81% $0 $0 p.a. 80% Enquire now More info
AMP Essential Home Loan  -  $100,000 and above (Owner Occupier)
Get this loan with a 10% deposit
For a limited time, pay no application or settlement fees. You can also take advantage of a free redraw facility.
4.04% 4.07% $0 $0 p.a. 90% Enquire now More info
3.72% 4.11% $0 $349 p.a. 90% Enquire now More info
Auswide Bank Variable Home Loan Plus with Freedom Package - $100K+ LVR <= 90% (Special Offer, Owner Occupier)
Discount special offer with a 100% offset account
A high maximum LVR home loan with redraw facility and additional payments. Get this mortgage with a 10% deposit.
3.76% 4.15% $0 $395 p.a. 90% Go to site More info
Community First Accelerator Home Loan Package - >$250k New Money Offer (Owner Occupier, P&I)
Get interest rate discounts and waived fees on this package loan with a 100% offset account.
3.59% 3.99% $600 $395 p.a. 95% Go to site More info
QBANK Fixed Home Loan - 1 Years Fixed Discounted LVR 90% (Owner Occupier Special Offer)
Get a competitive rate and avoid ongoing fees. This loan is only available to current and former employees of eligible Queensland government organisations.
3.62% 4.49% $0 $0 p.a. 80% Go to site More info
State Custodians Low Rate LOC - LVR up to 80% (Owner Occupier, IO)
Use your home equity with a low rate
A low-fee line of credit loan from an online lender. Unlock the equity in your home and make interest-only repayments with a competitive rate.
3.93% 3.94% $0 $0 p.a. 80% Go to site More info
loans.com.au Offset Variable - Package Offset (Investment, P&I)
Competitive investment package loan
Package your owner occupied loan with investment loan and receive a discounted investment rate. 100% offset account included.
3.97% 3.99% $0 $0 p.a. 80% Go to site More info
Beyond Bank Low Rate Special Home Loan - LVR ≤ 80% (Owner Occupier)
Minimal fees and a 100% offset account
Access an offset account and pay no application or ongoing fees on this special variable rate for owner-occupiers.
3.79% 3.79% $0 $0 p.a. 80% Go to site More info
Macquarie Bank Basic Home Loan - LVR up to 70% (Investor, P&I)
Save on fees with this investor mortgage
Investors with a 30% deposit can get this low rate loan to fund their property portfolio.
3.99% 3.99% $0 $0 p.a. 70% Enquire now More info
3.74% 3.74% $0 $0 p.a. 80% Go to site More info
ME Basic Home Loan - LVR <=80% (Owner Occupier, P&I)
Simple residential mortgage product
This variable rate loan keeps the features simple and fees low. This loan is offered by a 100% online lender.
4.09% 4.11% $0 $0 p.a. 80% Go to site More info
UBank UHomeLoan Variable Rate -Discount Offer for Investor Variable P&I Rate
Special discounted interest rate
Get a discounted, low-fee investor loan from a convenient online lender. 20% deposit required.
3.99% 3.99% $0 $0 p.a. 80% Go to site More info
Yellow Brick Road Empower Home Loan - 3 Years Fixed LVR up to 95% (Owner Occupier P&I)
A competitive 3-year fixed rate loan with a high max insured LVR.
4.29% 4.26% $0 $0 p.a. 95% Enquire now More info
Tic:Toc Invest Fixed Rate Loan - 1 Year Fixed (Principal & Interest)
Flexible low fee mortgage
Enjoy a fast application process and flexible repayment options with this fixed rate mortgage for investing.
3.84% 3.91% $0 $0 p.a. 80% Go to site More info
UBank UHomeLoan - 1 Year Fixed Rate (Owner Occupier, P&I)
Competitive interest rate
A one year fixed rate offer with no ongoing bank fees.
3.59% 4.14% $395 $0 p.a. 80% Go to site More info
ME Flexible Home Loan Fixed - 2 Year Fixed Rate (Owner Occupier, P&I)
Fix your rate for 2 years
Access a fee-free 100% offset account and pay no application or ongoing fees.
3.99% 4.86% $0 $0 p.a. 80% Go to site More info
Newcastle Permanent Building Society Fixed Rate Home Loan - 2 Years Fixed (Owner Occupier, P&I)
10% deposit option available
Borrow up to 90% of the value of the property you're buying and pay no application or ongoing fees.
3.89% 4.94% $595 $0 p.a. 90% Go to site More info
Greater Bank Ultimate Home Loan - Discounted 2 Year Fixed LVR ≤90% ($150K+ Owner Occupier)
10% deposit option available
A fixed rate loan with a 100% offset account and the option to make additional repayments. Loans over $150k receive a discounted rate. NSW, QLD and ACT residents only.
3.69% 4.54% $0 $395 p.a. 90% Go to site More info
Mortgage House Advantage Variable Home Loan - LVR 95 Special (Owner Occupier, P&I)
Low deposit loan for investors
Buy a home with just a 5% deposit and get flexible repayment options and a redraw facility.
4.24% 4.27% $0 $0 p.a. 95% Enquire now More info
Suncorp Back to Basics Home Loan - Better Together Special Offer $150k+ LVR<=90% Incl. LMI (Owner Occupier, P&I)
Available with a 10% deposit
Get one free online redraw per month and pay no ongoing fees. Application fees are waived for loans above $150,000.
3.68% 3.69% $0 $0 p.a. 90% Enquire now More info
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Credit services for Aussie Select, Aussie IQ and Aussie Optimizer products are provided by AHL Investments Pty Ltd ACN 105 265 861 Australian Credit Licence 246786 ("Aussie"), and its appointed credit representatives. Credit for Aussie Select products is provided by Residential Mortgage Group Pty Ltd ACN 152 378 133 Australian Credit Licence 414133 (“RMG”). RMG is a wholly-owned subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL and Australian Credit Licence 234945. Credit for Aussie Optimizer products is provided by Perpetual Limited ABN 86 000 431 827 (Lender). Credit for Aussie IQ is provided by Macquarie Bank Limited ABN 46 008 583 542 AFSL and Australian Credit Licence 237502. Home loans issued by the Lender are serviced by Macquarie Securitisation Limited ABN 16 003 297 336, Australian Credit Licence 237863 (MSL).

Aussie is a trade mark of AHL Investments Pty Ltd. Aussie is a subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124. ©2018 AHL Investments Pty Ltd ABN 27 105 265 861 Australian Credit Licence 246786.

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Compare cheap home loans

Find the lowest interest rate

Calculating your mortgage expenses.Getting a lower interest rate is one of the best ways to save on your loan. Even a difference of a few basis points saves you thousands over a 30-year mortgage. Here are some tips to help you compare rates:

  • Variable versus fixed rates. Variable loans usually have lower rates and offer more flexibility than fixed loans. But you can find very competitive fixed rate loans too. If rates rise while you're still on a fixed loan, you may end up with a more competitive rate.
  • Introductory rate discounts. Look out for loans with discounted introductory interest rates. These might be some of the lowest loans on the market. Just watch out for fees and be ready to switch if your rate jumps up.
  • Non-bank lenders. Loans from smaller, non-bank lenders are more likely to have lower rates. But the mortgage market is so competitive that even the big banks are offering comparably low rates.
  • Negotiating. Once you've chosen a mortgage you can ask for a discount. It never hurts to ask.

Get a loan with low fees

Most mortgages come with fees. These are separate from the interest rate and your repayments, but they are calculated into a loan's comparison rate.

Upfront, one-off fees (like application fees) can seem expensive, but smaller, ongoing fees can cost you more in the long run.

So should I avoid fees at all costs?

Not always. You need to crunch the numbers and work it out for yourself. If a loan has a low rate and features you need (like an offset account), then it might be worth paying the fee.

Some fees only come at the end of the loan or when switching lenders. Keep this in mind if you're planning to refinance (which you probably should).

Get features that save you time (and money)

Home loans with the lowest interest rates often have fewer features. But the right features can help you get more out of your home loan and save you money. It depends on your strategy.

  • Offset accounts. An offset account is a transaction account linked to your home loan. It reduces the amount of interest you're repaying. For example, if you borrow $200,000 and save $10,000 in a 100% offset account, you will only pay interest on $190,000. You can use the offset account funds if you need to spend them, but then you'll have to pay interest on the full amount.
  • Loan portability. This feature lets you move your loan to a new property without the high costs of exiting a loan and taking out a new one.
  • Unlimited extra repayments. Some lenders charge penalty fees when you make extra repayments. The most affordable home loan could be the one that lets you pay it off in your own way, so watch out for repayment fees. Note that while most lenders allow you to pay variable rate home loans off early with no problem, fixed loans will charge a penalty fee known as break costs.

Save a bigger deposit

The bigger your deposit, the less you have to borrow. This makes for cheaper repayments. In some cases, a bigger deposit unlocks lower rates. Most mortgages require a deposit between 5% and 20% of your property's value. If you borrow with a deposit that is less than 20% of your property's value, you will need to pay lenders mortgage insurance on top of your loan.

Having at least 20% of your property's value as a deposit saves you money. If you have a 30% deposit, you could get an even lower interest rate, but that's unrealistic for many home buyers.

Take a closer look at your repayments

Your repayment structure has a big effect on the cost of your loan. Principal and interest loans result in bigger monthly repayments but are cheaper in the long run. Interest-only loans have much cheaper repayments during the interest-only period but higher repayments afterward. This costs you more over time.

Shorter loan periods

The faster you pay off a home loan, the less interest you pay over time. So even though the repayments for a 25-year home loan might look high compared to those of an identical 30-year home loan, the savings would be higher.

Check out the difference in the total cost of two loans below:

A graph showing the savings gained from a shorter loan period.

A 25-year mortgage has higher repayments, but works out to be cheaper in the long run because you pay less interest.

I have a few more questions about getting the cheapest home loan

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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.

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.

Greater Bank Ultimate Home Loan - Discounted 1 Year Fixed LVR ≤90% ($150K+ Owner Occupier)

Loans over $150k get a discount off an already low fixed rate. Available for NSW, QLD and ACT residents only.

Newcastle Permanent Building Society Premium Plus Package Home Loan - New Customer Offer ($150k+ Owner Occupier, P&I) Discount 1

New borrowers or refinancers from another lender get a discounted rate with this package loan.

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