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Cheap home loans

Mortgages have never been this cheap, meaning you can pay less for your property with the right loan. Compare the lowest interest rates and learn how a cheaper loan could help you own your home outright sooner.

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This article was fact-checked and reviewed by , an accredited and award-winning finance broker and industry mentor. Content has been updated for 2021.

The cheapest home loan for you is the one that suits your needs and saves you money. And that's different for every borrower. Everyone has a different financial situation with a different budget, deposit, income, debt and credit profile.

But the way you find the cheapest home loan is similar for every borrower. You need to:

  1. Find a home loan with a low interest rate.
  2. Look at fees to understand the real cost of the loan.
  3. Find a loan with features that will save you money (like an offset account).
  4. If possible, save a bigger deposit.

Must read: Do you really have the cheapest home loan?

Your home loan repayment amount is influenced by a number of things, including monthly fees, offset accounts, loan flexibility and your overall loan amount, which all affect the true cost of the loan. Here's how to compare different loans and find the cheapest one for you.

St.George Fixed Rate Advantage Package - 2 Year Fixed Rate LVR 60% to 80% (Owner Occupier, P&I)

1.84 %p.a.

fixed rate

3.38 %p.a.

comparison rate

St.George Home Loan Offer

Up to $4,000 refinance cashback
Borrowers with 20% deposits or equity can get this competitive fixed rate loan. Refinancers borrowing $250,000 or more can get up to $4,000 cashback (Other terms, conditions and exclusions apply).
  • Interest rate of 1.84% p.a.
  • Comparison rate of 3.38% p.a.
  • Application fee of $0
  • Maximum LVR: 80%
  • Minimum borrowing: $150,000
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Data updated regularly
Name Product Interest Rate (p.a.) Comp. Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment
St.George Fixed Rate Advantage Package
1.84%
3.38%
$0
$395 p.a.
80%
$543.64
Up to $4,000 refinance cashback
Borrowers with 20% deposits or equity can get this competitive fixed rate loan. Refinancers borrowing $250,000 or more can get up to $4,000 cashback (Other terms, conditions and exclusions apply).
Westpac Flexi First Option Home Loan
2.29%
2.72%
$0
$8 monthly ($96 p.a.)
95%
$577.55
Up to $3,000 refinance cashback.
A flexible and competitive variable rate loan. Eligible borrowers refinancing $250,000 or more can get $2,000 cashback per property plus a bonus $1,000 for their first application. Other conditions apply.
UBank UHomeLoan Fixed
1.75%
2.22%
$0
$0 p.a.
80%
$537
This very low fixed rate is only available until 29 April 2021. Other conditions apply. A competitive fixed rate loan with no ongoing fees. Requires a 20% deposit
HSBC Fixed Rate Home Loan Package
1.88%
2.86%
$0
$390 p.a.
80%
$546.6
$3,288 refinance cashback offer
Lock in a low fixed rate for 2 years and buy your home with a 20% deposit. Eligible refinancers borrowing $250,000 or more can get a $3,288 cashback. Terms and conditions apply.
Suncorp Home Package Plus Fixed
1.89%
2.85%
$0
$0 p.a.
80%
$547.35
Lock in a low fixed rate loan for two years and get the annual package fee waived in the first year. Available for borrowers with 20% deposits.
Athena Variable Home  Loan
2.19%
2.19%
$0
$0 p.a.
60%
$569.91
Owner occupiers with 40% deposits or equity can get this competitive variable rate loan. No upfront or ongoing fees.
AMP Bank Professional Package Fixed Loan
1.99%
3.1%
$0
$0 p.a.
80%
$554.81
Get a low fixed rate package with no application or settlement fee. Available with a 20% deposit. Other fees and charges apply.
loans.com.au Smart Booster Discount Variable Home Loan
1.99%
2.47%
$0
$0 p.a.
80%
$554.81
Home buyers can get a very low discounted variable rate for the first year. This loan has a revert rate of 2.48%. Requires a 20% deposit. Add an offset account for an additional 0.10% on your interest rate.
Westpac Fixed Option Home Loan Premier Advantage Package
1.89%
3.46%
$0
$395 p.a.
95%
$547.35
Up to $3,000 refinance cashback.
Eligible borrowers refinancing $250,000 or more can get up to $3,000 cashback. Other conditions apply.
Macquarie Bank Basic Fixed Home Loan
2.09%
2.43%
$0
$0 p.a.
70%
$562.33
Get a low interest rate and a mortgage with flexible, basic features. No application or ongoing fees. Requires a 30% deposit. Refinancers can switch with a convenient digital application.
St.George Basic Home Loan
2.49%
2.51%
$0
$0 p.a.
80%
$593.01
Up to $4,000 refinance cashback
Get this low-rate variable loan with a 20% deposit and pay $0 application fee. Borrow from $150k (or $250k to be eligible for the cashback offer) (terms, conditions & exclusions apply).
UBank UHomeLoan Variable Rate
2.34%
2.34%
$0
$0 p.a.
80%
$581.39
Enjoy flexible repayments, a redraw facility and the ability to split your loan. Plus, pay no application or ongoing fees.
HSBC Home Value Loan
2.44%
2.45%
$0
$0 p.a.
80%
$589.12
$3,288 refinance cashback offer
Get a low interest variable rate loan with no ongoing fees. Plus you can make extra repayments and free redraw online. If you're refinancing $250,000 or above you can get a $3,288 cashback. Terms and conditions apply.
UBank UHomeLoan Fixed
1.99%
2.33%
$0
$0 p.a.
80%
$554.81
Fix your mortgage for 1 year with a very competitive rate and no ongoing fees.
Greater Bank Great Rate Fixed Home Loan
1.69%
3.49%
$0
$0 p.a.
110%
$532.6
Requires a family member to act as guarantor.
Get one of the lowest rates on the market with this fixed rate mortgage and borrow more with help from a family guarantor. NSW, QLD and ACT residents only.
Macquarie Bank Basic Home Loan
2.49%
2.49%
$0
$0 p.a.
60%
$593.01
A competitive variable rate home loan for owner-occupiers. Requires a 40% deposit. Refinancers can switch with a convenient digital application.
Suncorp Back to Basics Home Loan
2.44%
2.45%
$0
$0 p.a.
80%
$589.12
A competitive variable interest rate loan with low fees. The establishment fee is waived if you borrow $150,000 or more.
Suncorp Home Package Plus Fixed
2.28%
3.15%
$0
$375 p.a.
80%
$576.78
Lock in a low fixed rate loan for three years and get the annual package fee waived in the first year. Available for borrowers with 10% deposits.
IMB Fixed Rate Home Loan
1.97%
2.81%
$449
$6 monthly ($72 p.a.)
95%
$553.31
NSW and ACT customers only. 3 years fixed interest terms and free access to redraw facility online. Available with a 10% deposit.
homeloans.com.au Low Rate Home Loan with Offset
2.14%
2.16%
$0
$0 p.a.
60%
$566.11
A competitive rate with no application or ongoing fees. This loan is not available for construction.
Virgin Money Reward Me Fixed Rate Home Loan
1.94%
2.77%
$300
$10 monthly ($120 p.a.)
80%
$551.07
$3,000 refinance cashback.
Buy your home and lock in a low rate for the first two years. Get a $3,000 cashback when you switch to Virgin Money with a loan amount of $300,000 or more with an LVR up to 80%. You must apply by 28 May 2021 and settle by 27 August 2021.
Bank of Melbourne Basic Home Loan
2.49%
2.51%
$0
$0 p.a.
80%
$593.01
Up to $4,000 refinance cashback
A competitive variable rate loan. Refinancers borrowing $250,000 or more can get up to $4,000 cashback (Other terms, conditions and exclusions apply).
homeloans.com.au Low Rate Home Loan with Offset
2.24%
2.26%
$0
$0 p.a.
90%
$573.72
This loan offers a competitive variable rate and a 100% offset account to help save you on interest repayments. This loan is not available for construction.
BankSA Basic Home Loan
2.49%
2.51%
$0
$0 p.a.
80%
$593.01
Up to $4,000 refinance cashback
A competitive variable rate loan from BankSA. Refinancers borrowing $200,000 or more can get up to $4,000 cashback (Other terms, conditions and exclusions apply).
Bank of Melbourne Advantage Package Fixed Home Loan
1.94%
3.21%
$0
$395 p.a.
80%
$551.07
Up to $4,000 refinance cashback
Lock in a low fixed rate loan for four years. Refinancers borrowing $250,000 or more can get up to $4,000 cashback (Other terms, conditions and exclusions apply).
CUA Achieve Variable Home Loan
2.35%
2.4%
$600
$0 p.a.
95%
$582.16
Home buyers can get a competitive, low-fee variable rate plus a 100% offset account. Low deposit option available. Eligible new home buyers with low deposits can apply for the First Home Loan Deposit Scheme with this lender and avoid LMI costs. Eligible refinancers can get a $2,000 pre-paid credit card when they switch to CUA.
Westpac Fixed Option Home Loan Premier Advantage Package
1.99%
3.29%
$0
$395 p.a.
95%
$554.81
Up to $3,000 refinance cashback. Lock in a very low rate for four years with this owner occupier loan. Eligible borrowers refinancing $250,000 or more can get up to $3,000 cashback. Other conditions apply.
BankSA Advantage Package Fixed Home Loan
1.89%
3.43%
$0
$395 p.a.
80%
$547.35
Up to $4,000 refinance cashback.
Fix to a low rate for two years and forget about rate rises. Refinancers borrowing $200,000 or more can get up to $4,000 cashback (Other terms, conditions and exclusions apply).
Bank of Melbourne Advantage Package Fixed Home Loan
1.84%
3.38%
$0
$395 p.a.
80%
$543.64
Up to $4,000 refinance cashback
Get a competitive home loan rate for two years. Requires at least a 20% deposit. Refinancers borrowing $250,000 or more can get up to $4,000 cashback (Other terms, conditions and exclusions apply).
loans.com.au Fixed
1.99%
2.7%
$0
$0 p.a.
80%
$554.81
Home buyers can lock in this low fixed rate for two years. This loan also allows extra repayments. Requires a 20% deposit.
BankSA Advantage Package Fixed Home Loan
1.99%
3.26%
$0
$395 p.a.
$554.81
Up to $4,000 refinance cashback
A competitive fixed rate loan. Refinancers borrowing $200,000 or more can get up to $4,000 cashback (Other terms, conditions and exclusions apply).
Heritage Bank Fixed Rate Home Loan
2.19%
4.23%
$600
$8 monthly ($96 p.a.)
95%
$569.91
Get a partial offset account and the option to make interest-only repayments.
St.George Fixed Rate Advantage Package
1.94%
3.21%
$0
$395 p.a.
80%
$551.07
Up to $4,000 refinance cashback
Lock in a very low rate for four years. Requires a 20% deposit. Refinancers borrowing $250,000 or more can get up to $4,000 cashback (Other terms, conditions and exclusions apply).
Athena Variable Home  Loan
2.24%
2.21%
$0
$0 p.a.
70%
$573.72
A low variable rate for owner occupiers with 30% deposits. No upfront or ongoing fees.
Newcastle Permanent Building Society  Premium Plus Package Fixed Rate
2.28%
3.84%
$0
$395 p.a.
95%
$576.78
$2,000 refinance cashback
Enjoy a competitive rate with no application fee for this package loan. $2,000 cashback for eligible refinancers borrowing $250,000 or more.
Greater Bank Great Rate Discount Variable with Family Pledge Home Loan
2.59%
2.6%
$0
$0 p.a.
110%
$600.83
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.
IMB Budget Home Loan
2.58%
2.64%
$449
$0 p.a.
80%
$600.05
A competitive variable rate for borrowers with 20% deposits saved. Available for NSW and ACT borrowers only.
homeloans.com.au Low Rate Home Loan with Offset
2.69%
2.52%
$0
$0 p.a.
80%
$608.71
A competitive rate with no application or ongoing fee. This loan is not available for construction.
UBank UHomeLoan Fixed
2.14%
2.35%
$0
$0 p.a.
80%
$566.11
A one year fixed rate offer with no ongoing bank fees.
Heritage Bank Discount Variable Home Loan
2.59%
2.64%
$600
$0 p.a.
80%
$600.83
Family guarantee option available. Enjoy flexible repayments and a low minimum loan amount.
UBank UHomeLoan Fixed
2.14%
2.71%
$0
$0 p.a.
80%
$566.11
Investors can enjoy flexible repayments and an easy application process with this pioneering online lender.
Heritage Bank Advantage Package Fixed
2.39%
3.15%
$0
$350 p.a.
95%
$585.25
Get a partial offset account and flexible repayments with this package loan.
loans.com.au Smart Booster Discount Variable Home Loan
1.99%
2.71%
$0
$0 p.a.
80%
$554.81
If you have an owner occupier loan with loans.com.au you can also get this very low rate variable mortgage for your investment property. Principal and interest repayments. Add an offset account for an additional 0.10% on your interest rate.
Macquarie Bank Offset Home Loan Package
2.49%
2.76%
$0
$0 p.a.
60%
$593.01
A sharp variable rate with low fees for borrowers with 40% deposits or refinancers with equity in their properties. Refinancers can switch with a convenient digital application.
St.George Basic Home Loan
2.54%
2.56%
$0
$0 p.a.
90%
$596.91
$2,000 cashback.
With this competitive variable rate loan from St.George, refinancers borrowing $250,000+ can get a $2,000 cashback (terms, conditions & exclusions apply)
homeloans.com.au Low Rate Home Loan with Offset
2.59%
2.42%
$0
$0 p.a.
60%
$600.83
Macquarie Bank Basic Fixed Home Loan
2.19%
2.53%
$0
$0 p.a.
80%
$569.91
Borrow up to $750,000 with this basic 3 years fixed rate home loan. Refinancers can switch with a convenient digital application.
Newcastle Permanent Building Society Real Deal Home Loan
2.59%
2.63%
$595
$0 p.a.
80%
$600.83
$2,000 refinance cashback
$2,000 cashback for eligible refinancers borrowing $250,000 or more.
homeloans.com.au Low Rate Home Loan with Offset
2.39%
2.41%
$0
$0 p.a.
80%
$585.25
This investment loan keeps fees low, has a sharp interest rate and comes with a 100% offset account. This loan is not available for construction.
Bankwest Complete Home Loan Package Variable
2.55%
3.01%
$0
$395 p.a.
80%
$597.7
$2,000 refinance cashback.
Eligible customers who apply to move their home loan to Bankwest by 30 June 2021 can get a $2,000 cashback. To qualify you must refinance a minimum loan amount of $250,000 or more with an LVR of 80% or lower. The loan must be funded by 31 August 2021 (other terms, conditions and exlcusions apply).
IMB Budget Home Loan
2.68%
2.74%
$449
$0 p.a.
95%
$607.92
NSW and ACT customers only. You can get an interest rate discount for a limited time with this competitive variable mortgage.
homeloans.com.au Low Rate Home Loan with Offset
2.74%
2.76%
$0
$0 p.a.
90%
$612.67
Access a fee-free offset account and a special interest rate for investors. This loan is not available for construction.
Bank of Melbourne Basic Home Loan
2.54%
2.56%
$0
$0 p.a.
90%
$596.91
$2,000 cashback
A competitive variable rate loan. Refinancers borrowing $250,000 or more can get a $2,000 cashback (Other terms, conditions and exclusions apply).
Newcastle Permanent Building Society  Premium Plus Package Fixed Rate
2.19%
3.72%
$0
$395 p.a.
95%
$569.91
$2,000 refinance cashback
Enjoy a discounted fixed rate and the ability to package the loan with other financial products. $2,000 cashback for eligible refinancers borrowing $250,000 or more.
Tic:Toc Live-in Loan Fixed Rate Home Loan
1.89%
2.15%
$0
$0 p.a.
90%
$547.35
Get a very low interest rate and pay no application, settlement or valuation fees. Apply online for full approval in real time and add a 100% offset account for $10 a month.
UBank UHomeLoan Fixed
2.09%
2.3%
$0
$0 p.a.
80%
$562.33
A competitive 3 year fixed rate with no ongoing bank fees.
Virgin Money Reward Me Variable Home Loan
2.59%
2.76%
$300
$10 monthly ($120 p.a.)
60%
$600.83
$3,000 refinance cashback.
A variable rate loan for owner occupiers with a 40% deposit (or equity) borrowing under $500,000. Get a $3,000 cashback when you switch to Virgin Money with a loan amount of $300,000 or more with an LVR up to 80%. You must apply by 28 May 2021 and settle by 27 August 2021.
homeloans.com.au Low Rate Home Loan with Offset
2.59%
2.61%
$0
$0 p.a.
90%
$600.83
Save on interest with a free 100% offset account and buy your property with just a 10% deposit. This loan is not available for construction.
UBank UHomeLoan Fixed
2.24%
2.64%
$0
$0 p.a.
80%
$573.72
Pay no ongoing fees on this investment loan fixed for 3 years.
HSBC Home Value Loan
2.54%
2.55%
$0
$0 p.a.
90%
$596.91
A competitive value home loan with no ongoing fee.
IMB Fixed Rate Home Loan
1.89%
2.87%
$449
$6 monthly ($72 p.a.)
95%
$547.35
NSW and ACT customers only. Lock in a low fixed rate for two years. Available with a 5% deposit.
homeloans.com.au Low Rate Home Loan with Offset
2.29%
2.31%
$0
$0 p.a.
60%
$577.55
A competitive rate with no application or ongoing fee. This loan is not available for construction.
UBank UHomeLoan Fixed
2.09%
2.6%
$0
$0 p.a.
80%
$562.33
Pay no ongoing fees on this competitive investment loan and fix your rate for 3 years.
Macquarie Bank Basic Home Loan
2.64%
2.64%
$0
$0 p.a.
80%
$604.76
Pay no application and ongoing fees and take advantage of split and redraw options. Refinancers can switch with a convenient digital application.
Newcastle Permanent Building Society Fixed Rate Home Loan
2.29%
3.94%
$595
$0 p.a.
95%
$577.55
$2,000 refinance cashback
Borrow up to 95% LVR of the value of the property you're buying and pay no ongoing fees. $2,000 cashback for eligible refinancers borrowing $250,000 or more.
IMB Fixed Rate Home Loan
2.49%
3.36%
$449
$6 monthly ($72 p.a.)
90%
$593.01
NSW and ACT customers only. A 3 years fixed rate investor which allows extra repayments to be made.
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*Disclaimer

The products compared on this page are chosen from a range of offers available to us and are not representative of all the products available in the market. There is no perfect order or perfect ranking system for the products we list on our Site, so we provide you with the functionality to self-select, re-order and compare products. The initial display order is influenced by a range of factors including conversion rates, product costs and commercial arrangements, so please don't interpret the listing order as an endorsement or recommendation from us. We're happy to provide you with the tools you need to make better decisions, but we'd like you to make your own decisions and compare and assess products based on your own preferences, circumstances and needs.d

Find a cheaper home loan on the Finder app

How to find the lowest interest rate

The number one factor in determining a cheaper home loan is the interest rate. The lower the interest rate, the cheaper your monthly home loan repayments will be.

Let's compare three otherwise identical home loans with slightly different interest rates. This shows you just how much the interest rate can impact how much you pay for your home loan:

Interest rate2.50%3.00%3.50%
Loan amount$600,000$600,000$600,000
Loan term30 years30 years30 years
Monthly repayment$2,370$2,529$2,694
Monthly saving$324$165$0
Annual saving$3,888$1,980$0

Obviously, the cheaper the home loan rate, the more you save – no surprises there. However, what you might find surprising is just how much you can save.

In our example, with a cheaper home loan interest rate that's 1% lower, you could save $3,888 over 12 months. This is money coming out of your pocket, which you could spend on other things – whether it's school fees and clothes for your kids, gadgets and devices or even holidays and shopping.

To find a cheaper home loan, you need to compare what's on offer from different lenders, making sure you're comparing apples with apples (for example, 2-year fixed-rate loans with other 2-year fixed-rate loans). If you're paying a higher interest rate for your mortgage and you haven't shopped around for a better deal, you're choosing to give your bank more money than you need to. Compare loans in the table above to see if you can get a better deal!

Is the cheapest loan always the one with the lowest interest rate?

Picture not describedThe cheapest loan for you depends on your personal circumstances, so to find the cheapest loan for you, you need to be clear on your goals.

For instance, let's say you want to improve your overall financial position and you'd like an extra $40,000, so you can consolidate personal debts and credit cards. These are debts on which you're paying interest rates of 10-20%, so refinancing to a cheaper mortgage rate could save you a lot of money.

  • Lender A may have a cheaper rate, but they won't lend you the additional $40,000 as you don't qualify on your income.
  • Lender B may charge an interest rate that is 0.25% higher, but they will lend you the extra $40,000.

In the long run, you still save money by consolidating your credit cards and personal debts into your loan, even though you have not gone for the cheapest interest rate.

To find the cheapest loan for you, consider how much you need to borrow; your timeline; any debts you wish to consolidate; and your goals (for example, do you want to pay off personal debts, repay your home loan as quickly as possible, or reduce your monthly payments?).

How much can you save with a cheaper home loan?

With the 3.50% rate in our example above, you end up paying $969,936 in total over the life of the loan. This amount includes the loan principal (the money you borrow) and the interest charged by the bank or lender. We calculated this by using our loan repayment calculator; to see how much you could save over different loan scenarios, plug some different rates in and try it out for yourself.

With the cheapest rate of 2.50%, you end up paying a total of $853,461.

The difference is a massive $116,475, a staggering amount of extra money your lender gets for no good reason!

Keep in mind that the cheapest home loans in terms of interest rates may not have features such as offset accounts that could ultimately save you money, or they can lack flexibility on transactions that you may need to make post settlement, and/or they could charge you ongoing fees.

How can a cheap home loan help you own your home sooner?

Here's where it gets really interesting. You could save even more money and own your home sooner if you make extra repayments every month.

Taking our scenario above, let's assume that you took out a loan at 3.50%. After 12 months, you shop around for a cheaper home loan deal, and you find a new loan with an interest rate of 2.50%. However – and this part is crucial – you continue to make repayments as if the interest rate was 3.50%.

This means you are making an extra repayment of $324 per month. However, for you, there's no change to your budget or lifestyle because you were already paying this amount each month anyway. Your new loan value is $590,000 (because you paid down $10,000 of the principal in the first year of repaying the mortgage) and when you refinance, you take out a new 30-year loan term.

According to our extra loan repayment calculator, by doing this from the very first day that you take out your new 30-year home loan, you would save a further $46,156 in interest and you would pay off your home loan 5 years sooner.

In other words, you'll stop making mortgage repayments at the end of year 25 instead of year 30. You get to be mortgage-free, five years sooner. Making extra repayments is how you can take a cheap home loan and make it work for you even more powerfully, so you become an outright homeowner sooner rather than later.

How do you find the lowest* mortgage rates on the market?

The interest rates in the table above are all very competitive products from lenders with whom Finder has a commercial partnership. But at Finder, we monitor the home loan market and have a database of interest rates from almost every lender in Australia.

Every month we analyse the rates in our database to create a definitive list of the market's cheapest loans.

Lowest variable rateInterest rateComparison rate
loans.com.au Smart Booster Discount Variable Home Loan - 1 year1.99% p.a.2.47% p.a.
Pacific Mortgage Group Standard Variable Home Loan - LVR 80% (Owner Occupier, P&I)2.09% p.a.2.09% p.a.
Well Home Loans Balanced Variable - LVR 80% Special Offer (Owner Occupier, P&I)2.17% p.a.2.2% p.a.
Freedom Lend Variable Home Loan - LVR ≤ 80% (Owner Occupier, P&I)2.17% p.a.2.17% p.a.
Tic:Toc Live in 10% deposit Variable Rate - Principal & Interest2.19% p.a.2.2% p.a.
Reduce Home Loans Economizer Variable2.19% p.a.2.23% p.a.
BankVic Introductory 3 Year Variable Rate - (Owner Occupier, P&I)2.19% p.a.2.89% p.a.
Homestar Star Classic Variable Rate Home Loan - Owner Occupied P&I Variable >850k 80%2.24% p.a.2.27% p.a.
Hume Bank Flexi Low Rate Home Loan - (Owner Occupier, P&I)2.34% p.a.2.34% p.a.
Westpac Flexi First Option Home Loan - Basic Variable Rate (Owner Occupier, P&I)2.29% p.a.2.72% p.a.
Lowest fixed rateInterest rateComparison rate
UBank UHomeLoan - 3 Year Fixed Rate (Owner Occupier, P&I)1.75% p.a.2.22% p.a.
HSBC Fixed Rate Home Loan - 2 Year Fixed Rate LVR 80% or below (Owner Occupier, P&I)1.88% p.a.2.86% p.a.
Greater Bank Ultimate Home Loan - 1 Year Fixed (Owner Occupier)1.69% p.a.3.72% p.a.
RACQ Bank Choices Package Fixed Loan - 1 Year $150k+ (Owner Occupier)1.69% p.a.4.15% p.a.
Tic:Toc Live in Loan Fixed Rate Home Loan - 2 Year (Owner Occupier, P&I) With Offset1.89% p.a.2.29% p.a.
Sydney Mutual Bank First Home Buyer Fixed Rate Home Loan - 2 Year Fixed (Special)1.89% p.a.2.82% p.a.
QBANK Fixed Home Loan - 3 Year Fixed Special Offer Max LVR <90% LMI1.89% p.a.3.37% p.a.
Suncorp Home Package Plus Fixed - 2 Year Fixed Rate Special Offer $150k+ LVR ≤80% (Owner Occupier, P&I)1.89% p.a.2.85%
Reduce Home Loans Rate Crusher 1 Year Fixed Rate (Owner Occupier)1.9% p.a.2.42% p.a.
Well Home Loans Balanced Fixed Home Loan - 1 Year (Owner Occupier, P&I)1.89% p.a.2.18% p.a.
Lowest fixed investor rateInterest rateComparison rate
Hume Bank Home Builder Home Loan - 3 year Fixed (Investor, P&I)1.99% p.a.3.71% p.a.
RACQ Bank Choices Package Fixed Loan - 3 Year $150k+ (Investor)2.09% p.a.4.21% p.a.
Tic:Toc Invest Fixed Rate Home Loan - 1 Year Fixed (Principal & Interest) With Offset2.17% p.a.2.73% p.a.
bcu Fixed Rate Home Loan - 2 Years (Investor, P&I)2.18% p.a.3.86% p.a.
People's Choice Credit Union Home Loan Package - 4 Year Fixed Package (Investor, P&I)2.64% p.a.3.42% p.a.
MOVE Bank Complete Package Fixed Home Loan - 1 Year Fixed Rate (Investment Loan)2.19% p.a.3.65% p.a.
Sydney Mutual Bank Special Fixed Home Loan - 2 Year (Investor, P&I)2.23% p.a.3.32% p.a.
Endeavour Mutual Bank Special Fixed Home Loan - 2 Year (Investor, P&I)2.23% p.a.3.32% p.a.
Firefighters Mutual Bank Fixed Home Loan - 4 Year Fixed (Investor)2.25% p.a.3.71% p.a.
Well Home Loans Balanced Fixed Home Loan - 1 Year (Investor, P&I)2.24% p.a.2.27% p.a.
Lowest variable investor rateInterest rateComparison rate
Tic:Toc Invest Loan Variable Rate Home Loan - Principal & Interest (With Offset)2.33% p.a.2.47% p.a.
Well Home Loans Balanced Variable - LVR 80% (Investor, P&I)2.24% p.a.2.27% p.a.
Reduce Rate Slasher Variable Home Loan - LVR up to 80% (Investor, P&I)2.29% p.a.2.34% p.a.
BankVic Premium Package Fixed Home Loan - 2 Year (Investor)2.44% p.a.4.4% p.a.
Queenslanders Credit Union Ultimate Home Loan Package - LVR<80% Special Package Variable (P&I)2.49% p.a.2.88% p.a.
Freedom Lend Variable Home Loan - LVR ≤ 80% (Investor P&I)2.47% p.a.2.47% p.a.
Pacific Mortgage Group Standard Variable Home Loan - LVR 80% (Investor, P&I)2.59% p.a.2.59% p.a.
Credit Union SA Home Loan Package - Variable LVR 80% or less $150k+ Special Offer (Investor, P&I)4.25% p.a.4.27% p.a.
MOVE Bank Straightforward Investment Home Loan - $500,000+2.44% p.a.2.48% p.a.
86 400 Variable Rate Neat Home Loan - LVR <80% (Investor, P&I)2.64% p.a.2.65% p.a.

*Our lowest variable and fixed rate home loans round-up is a monthly analysis of the cheapest loans in Finder's database. The rates and other information on this page are correct at the time of publication and are subject to change. There may be lower rates on the market than the ones listed here.

Finder's cheapest home loan rate tracker

We also track the market's lowest rates each month, giving borrowers a clear snapshot of what counts as a low rate.

Look at cheap home loans from multiple lenders

Australians are more loyal than we should be to banks and lenders – and loyalty may be your biggest mistake if you want a cheaper mortgage.

Look at the loans on offer from lenders big and small, and be aware that every bank and lender has its own credit policy, which can impact the way they assess your application. For example, some lenders have a bigger appetite for investment loans than others. Some have policies that are favourable for first home buyers. Others might offer lower rates if you have a bigger deposit, and some are prepared to offer a lower rate even if your deposit is smaller.

This is why it's so important to shop around when looking for a home loan. Keep in mind that every lender in Australia is regulated by ASIC and APRA and they are subject to the National Credit Code.

Here are some different types of lenders you can look at:

  • Big Four. Australia's Big Four banks are Commonwealth Bank, Westpac, NAB and ANZ. You may already bank with them. Month after month, Finder's lowest rate analysis shows that the absolute cheapest rate is never from one of the Big Four. However, you may see some of their products among the 10 lowest-rate products.
  • Online lenders. Some lenders operate without any physical branch locations and offer their services entirely online. They pass the savings on to borrowers in the form of lower interest rates, so you may find the market's lowest mortgage rate from one of these lenders.
  • Fintechs and neobanks. Similar to online lenders, there are digital mortgage innovators using new financial technology to offer borrowers home loans online using mobile apps and customer data to create convenient and competitive loan products. Some of these products are among the market's cheapest, and there's a lot of overlap with online lenders here.
  • Small lenders and credit unions. Every major town, city and region in Australia has local credit unions and other customer-owned banks. Some of these lenders offer competitive mortgage deals. There are also smaller banks that operate nationwide (or in some states) that may offer very good deals.

While everyone is interested in getting a cheap home loan rate, there are a number of other factors to consider too, including user-friendly apps and online banking portals, strong customer service, branch locations and the availability and selection of other financial products, like savings and transaction accounts. When shopping for a loan, the cheapest rate is one consideration – but it shouldn't be the only one.

How to get a loan with low fees

It's important to understand all of the fees and charges before you commit to anything. Some lenders may charge you the following:

  • Loan application fee – upfront/when you apply
  • Settlement fee – once the loan settles
  • Valuation fee – upfront/when you apply
  • Legal fees – when you finalise the loan
  • Discharge fee – when you exit the loan

An analysis of fee costs in Finder's mortgage database shows the average cost of upfront fees is $686.

Some loans also charge ongoing fees monthly or annually, and those can really add up: a fee of $10 per month may not seem like a lot, but it's $120 per year. Multiply that over 30 years, and that's $3,600 of your hard-earned money, which is better off in your pocket than in the bank's.

To avoid getting stung by fees, make sure you compare all of the costs involved in the loan, not just the interest rate.

For instance, you might choose a loan with a package fee of $395, but where monthly $15 account keeping fees are waived. If the loan's package features (such as offset or redraw) are useful and save you money, and the interest rate is low, this could still save you a lot of money.

Let's say you're currently paying a $15 per month account-keeping fee, so you're already spending $180 per year. This annual package fee is $395, which adds $215 per year to your costs. But will the interest savings more than make up for the extra cost? Are there other benefits that make this annual package fee worthwhile, such as fee-free credit cards or insurance discounts? You have to be aware of the true cost of the fees and work it out for yourself.

Does the comparison rate matter?

A home loan's comparison rate takes the cost of loan fees into account. It does this by using a hypothetical home loan and combining the fee cost with the interest rate. Importantly, the comparison rate generally takes into account a loan value of $150,000, and your actual home loan value may be much higher. Your actual home loan will have a different comparison rate.

For this reason, the comparison rate can be helpful, but you're better off looking at the actual fees of a loan and working out what they'll cost you.

Get a cheaper home loan by saving a bigger deposit

Another way to make your home loan cheaper is to save a larger deposit and therefore borrow less money. Of course, this is much easier said than done and isn't always possible. If you're able to scrape together more funds at the beginning of your home loan, it can work out cheaper for you in several ways:

  • You can avoid lenders mortgage insurance. If your deposit is 20% of your property's value, then you can avoid the added expense of lenders mortgage insurance (LMI). Borrowers with small deposits usually have to pay this, which can add thousands of dollars to your loan costs.
  • You pay less in interest. Obviously, the less you borrow, the less you pay in interest, and the cheaper your home loan repayments are each month.
  • You can unlock lower rates. Many lenders reserve their cheapest interest rate offers for borrowers with a deposit of 20% or more.

If you can't save 20% but your parents own a home and are willing to help you, they could guarantee your deposit and help you avoid paying LMI.

Make sure you choose the right repayment type for you

Your choice of repayment type may also directly affect your home loan costs. Here are your two options:

  • Principal and interest repayments. You borrow money (the loan principal) and repay it together with interest. This means you're paying down the debt from day one. Principal and interest loans tend to have the lowest interest rates when compared to investment loans.
  • Interest-only repayments. With an interest-only loan, you get an initial period (generally one to five years) where you only repay the interest charged on the loan and don't pay off any of the principal. This makes your repayments much cheaper early on, but after the interest only period ends, the repayments increase quite a lot. Also, rates on interest only loans tend to be higher than on principal and interest rates.

So, which is cheaper? It depends on what your priorities are. Over the life of a home loan if you only make principal and interest repayments, you are likely to pay less in interest.

However, during the interest only period, your repayments will definitely be lower. For some borrowers, the cheapest home loan is the one that saves you money right now, not the one that saves you money overall.

If you've lost your job or are struggling to make repayments, then temporarily switching to interest only could help you manage in the short term. Having an interest only loan on an investment property may also make financial sense as it allows you to maximise your tax deductions.

How the length of your home loan can impact the cost

As with interest-only repayments, your home loan length can make your loan cheaper in the short term and more expensive in the long term (or vice versa).

A 25-year loan term will see you pay less interest than a 30-year loan term. That makes the home loan cheaper overall, but your monthly repayments will be higher.

It's all about striking a balance between affordable monthly repayments and overall interest.

Let's break down three examples. These loans are all for the same amount borrowed, but the loan term changes:

Loan term30 years25 years20 years
Interest rate3.00%3.00%3.00%
Loan amount$600,000$600,000$600,000
Monthly repayment$2,529$2,845$3,327
Total cost*$910,664$853,580$798,620

*Total cost here refers to the amount of interest you pay over the life of the loan, plus the principal.

The 30-year loan's monthly repayments are $316 cheaper than for the 25-year loan, but over the life of the loan, you'll end up paying $57,084 more in interest.

The 30-year loan's monthly repayments are $798 cheaper than for the 20-year loan, but if you pay that loan off in 20 years, you save $112,044 in interest.

More questions about getting a cheap home loan

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    71 Responses

      Default Gravatar
      rixSeptember 12, 2019

      I have a house that is located in Perth WA and the mortgage is fixed for 2 more years. I would like to change to a lender that is offering less than 3% as the fixed rate of 4.5% can you advise me the safest way to go? mortgage is approximately $160,000 on a 3 year old new home 4 x 2

        Default Gravatar
        NikkiSeptember 13, 2019

        Hi Rix,

        Thanks for getting in touch!

        You may refer to our complete guide to refinancing your home loan to know how to get started. You can also refer to our list of refinancing home loans to compare your options. Our table should allow you to compare the features and benefits of each loan provider such as max loan rate, interest and etc. This way it will be easier for you to see which provider fits you best. Banks like HUME, Virgin, and Ubank offer interest rates of less than 3%. If you need further help, a quick guide on how to compare home loans is also stated on the page.

        A mortgage broker is the best person to reach out to see your options for refinancing. They can give you a multitude of options according to your situation. In the meantime, to give you an idea of how your monthly repayments will go, you may use our home loan calculator.

        As a friendly reminder, carefully review the eligibility criteria of the loan before applying to increase your chances of approval. Read up on the terms and conditions and product disclosure statement and contact the bank should you need any clarifications about the policy.

        Hope this helps and feel free to reach out to us again for further assistance.

        Best,
        Nikki

      Default Gravatar
      IanJuly 24, 2019

      I have been looking into refinancing my property, but as it’s an acreage (60 ha), no lenders seem to be interested in me.

        Avatarfinder Customer Care
        JeniJuly 24, 2019Staff

        Hi Ian,

        Thank you for getting in touch with Finder.

        There are lenders from our rural or hobby farm home loans guide. You can compare your options using our comparison table. When you are ready, press the ‘Go to site’ button to apply. You can also seek professional help from a mortgage broker since you’re having a hard time finding the right bank/lender.

        Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you. You can also contact the provider if you have specific questions.

        I hope this helps.

        Thank you and have a wonderful day!

        Cheers,
        Jeni

      Default Gravatar
      keithApril 11, 2019

      I have just paid off my house worth approx $800-850k. I am looking at ways besides dying to assist my two children into getting into a property. Can you expand on the family pledge home loan as they both have not got a deposit or another product in which I can assist with them getting into the property market?

      Thanks.

        Avatarfinder Customer Care
        JeniApril 13, 2019Staff

        Hi Keith,

        Thank you for getting in touch with Finder.

        You can assist your kids to get a deposit together. For example, the child saves 5% or 10% of a property’s value, and the parent can use the equity in their house to cover the other 10-15%. The child pays back the whole loan (including the amount guaranteed by the parent). Once the parent’s part of the deposit is repaid by the child, the parent/guarantor is usually free from any other debt even if the child can’t repay the rest. But the big risk is if the child can’t repay the loan (including deposit) the parent/guarantor may have to repay it.

        Please refer to our guarantor home loans guide for more details and to compare your options.

        I hope this helps.

        Thank you and have a wonderful day!

        Cheers,
        Jeni

      Default Gravatar
      rexyjayMarch 22, 2019

      Good afternoon!

      I am a small investor and have two rented properties. I am enquiring as to what the average percentage rate should be on a current loan please.

        Avatarfinder Customer Care
        JeniMarch 23, 2019Staff

        Hi Rexjay,

        Thank you for getting in touch with Finder.

        You may compare a range of investment home loans. On the page is a comparison table you can use to enter your loan amount and the loan term then click the ‘Calculate’ button to start comparing your loan options. As of this writing, the comparison rate starts from 3.99% to 5.35%.

        I also suggest that you seek help from a mortgage broker since you’re looking for providers that offer the cheapest rate.

        I hope this helps.

        Thank you and have a wonderful day!

        Cheers,
        Jeni

      Default Gravatar
      LeeNovember 27, 2018

      A mortgage broker has suggested a home loan from a company called BlueBay – I have never heard of them before. Are you able to provide any information?

      Thanks.

        Avatarfinder Customer Care
        JeniNovember 27, 2018Staff

        Hi Lee,

        Thank you for getting in touch with Finder.

        According to our guide on parent assist home loan, it is a product offered through a single Australian lender, Bluebay Home Loans.

        I hope this helps.

        Please feel free to reach out to us if you have any other enquiries.

        Thank you and have a wonderful day!

        Cheers,
        Jeni

      Default Gravatar
      NorbertoOctober 24, 2018

      H! I need the following information concerning I to need to get $32.000.00 dollars. Is their anybody out there who can lend me money because I’m on new start allowance? I have an excellent credit score would I be able to get a cheap loan on 5 to 6 weeks at the most.I would appreciate a reply as soon as possible because this is really urgent.

        Avatarfinder Customer Care
        JohnOctober 31, 2018Staff

        Hi Norberto,

        Thank you for your question.

        I understand the situation you currently have and would advise you to check on loans for the unemployed. You may need to reach out directly to the lender to check what they consider as income during your application for the loan. Hope this helps!

        Cheers,
        Reggie

      Default Gravatar
      PoidaJune 12, 2018

      I have a $230,000 mortgage on a $900,000 house.
      I also have a $600,000 inheritance coming when probate currently in progress settles.
      Is there a lender who will give me a line of credit loan 0f $350,000 so I can pay off my present mortgage and have money until probate settles?
      I am currently unemployed.

        Default Gravatar
        NikkiJune 12, 2018

        Hi Poida,

        Thanks for your message.

        Being unemployed may post risks or roadblocks when you apply for refinancing. Before putting in an application, it would best if you talk to a mortgage broker who can guide you in this process.

        Cheers,
        Nikki

      Default Gravatar
      DennisMay 4, 2018

      Hi. I just wanted to know is there any reason why Reduce home loans are no longer on your home loan comparison site ?

        Default Gravatar
        JoelMay 4, 2018

        Hi Dennis,

        Thanks for leaving a question on Finder.

        A reduce home loan is not a bank nor a lender. A reduce home loans is a licensed and regulated finance brokerage that sources home loans from a variety of Australian lenders. Because reduce home loans is an online-only business, it has low overheads and can offer lower rates. And because it can source funding from a variety of Australian lenders, it can offer competitive products to borrowers. The link above will redirect you to our review page for reduce home loans. On the page is a comparison table you can use to see which offer loan suits you.

        Cheers,
        Joel

      Default Gravatar
      stanleyFebruary 20, 2018

      I am looking to purchace a house in the uk, I have a fully owned unit in Sydney with an approximate value of $900,000 . I would require a loan of $300,000 as I am 80 years of age would a loan for this sum be possible.

        Avatarfinder Customer Care
        JonathanFebruary 21, 2018Staff

        Hi Stanley, thanks for your inquiry.

        Loans for purchasing property overseas are possible. Some options include:

        -Banks in Australia with foreign branches.
        -Non-Australian owned foreign banks that provide loans.
        -Mortgage brokers in Australia and abroad.

        Since your unit is fully owned, this should be a positive factor in sourcing equity to purchase overseas.

        We would recommend speaking to a licensed mortgage broker to further discuss your options.

        Best,

        Jonathan

      Default Gravatar
      PeterMay 31, 2017

      cheapest interest on reverse mortgage loan ?

        Default Gravatar
        JonathanMay 31, 2017

        Hi Peter!

        Thanks for the comment.

        You may check our guide that talks about reverse mortgage to shop around with the rates from different lenders.

        Just click “More Info” or the “Go to site” button if you wish to learn more or proceed with a specific lender.

        Hope this helps.

        Cheers,
        Jonathan

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