25+ of the cheapest home loans compared*

Rates and Fees verified correct on December 4th, 2016

Find cheap home loans with low interest rates and fees

Lower interest and fees mean you can pay off your mortgage faster, have extra money on hand because of lower repayments or spend more on that dream property.

Find your ideal low-interest, low-fee loan by comparing options in the table below. Not sure what you need? Check out our expert guide on finding the right loan, how much you'll have to repay and how to speed up paying off your loan.

HSBC Home Value Loan - Resident Owner Occupier only

HSBC Home Value Loan - Resident Owner Occupier only

3 .55 % p.a.

variable rate

3 .57 % p.a.

comparison rate

HSBC Home Loan Offer

The HSBC Home Value Loan is a low rate with no monthly fees. Enjoy premium service with a dedicated HSBC Relationship Manager.

  • Interest Rate of 3.55% p.a.
  • Comparison Rate of 3.57% p.a.
  • Application Fee of $0
  • Maximum LVR: 90%
  • Minimum Borrowing: $50,000
  • Maximum Borrowing: $7,500,000

Cheapest home loans comparison

Rates last updated December 4th, 2016.

CUA Kick Start Variable Home Loan - 2 Years Introductory (Owner Occupier)

Comparative rate decreases by 0.03%

November 29th, 2016

CUA Kick Start Variable Home Loan - 2 Years Introductory (New Investment Only)

Interest rate is now 3.69%

November 29th, 2016

UBank UHomeLoan Variable Rate - Standard Variable Rate (Investor with Investor Extra Offer P&I)

Comparative rate decreases by 0.10% | Interest rate decreases by 0.10%

December 2nd, 2016

View latest updates

Jodie Humphries Jodie
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Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment
HSBC Home Value Loan - Resident Owner Occupier only
Enjoy the low variable rate with $0 ongoing fee and borrow up to 90% LVR.
3.55% 3.57% $0 $0 p.a. 90% Go to site More info
3.74% 3.74% $0 $0 p.a. 80% Go to site More info
loans.com.au Essentials - New Purchases Only Up to 80% LVR (Owner Occupier, P&I)
Low variable rate for new purchases as well as no application or ongoing fees. Special offer ends 15 December.
3.39% 3.41% $0 $0 p.a. 80% Go to site More info
State Custodians Standard Variable Spring Special - LVR 80% (Owner Occupier)
Special Owner Occupier Rate. Free Offset Account.
3.59% 3.92% $0 $299 p.a. 80% Go to site More info
Greater Bank Ultimate Home Loan - Discounted 1 Year Fixed ($150K+ Owner Occupier)
Discount off an already competitive interest rate for loans over $150k. NSW, QLD and ACT residents only.
3.59% 4.42% $0 $375 p.a. 85% Go to site More info
ANZ Breakfree Package Home Loan - 2 Year Fixed (Owner Occupier) $150k+
This 2 year fixed ANZ Breakfree Package rate comes with package discount and product bundle. Terms and conditions, package fee and fees, charges & eligibility criteria apply.
3.75% 4.62% $0 $395 p.a. 95% Go to site More info
ClickLoans The Online Home Loan - Owner Occupier ≤ 80% LVR
Enjoy a competitive interest rate when you have a deposit of at least 20%.
3.69% 3.69% $0 $0 p.a. 80% Go to site More info
loans.com.au Offset Variable - New Purchases Only Up to 80% LVR (Owner Occupier, P&I)
No application or annual fees, and access to a 100% offset account. Special offer ends 15 December.
3.49% 3.51% $0 $0 p.a. 80% Go to site More info
NAB Choice Package Home Loan - 2 Year Fixed (Owner Occupier)
A fixed rate package loan with flexible repayments options. 250,000 Velocity Frequent Flyer point offer, conditions apply.
3.75% 4.87% $0 $395 p.a. 95% Go to site More info
Bank Australia Basic Home Loan - Variable (Owner Occupier)
A competitive variable that allows borrowers to borrow from a minimum of $100,000 and $0 ongoing fee.
3.59% 3.60% $0 $0 p.a. 80% Go to site More info
CUA Kick Start Variable Home Loan - 2 Years Introductory (Owner Occupier)
Borrow up to 90% LVR and enjoy an introductory rate for the first 2 years.
3.69% 3.87% $600 $0 p.a. 90% Go to site More info
Australian Unity Kick Starter Home Loan
$0 ongoing service fees, maximum 80% LVR and a linked transaction account.
3.79% 3.82% $600 $0 p.a. 80% Go to site More info
State Custodians Breathe Easy Spring Special  - LVR 80% (Owner Occupier)
Special Owner Occupier Rate. Free Offset Account.
3.72% 3.75% $0 $0 p.a. 80% Go to site More info
ME Bank Flexible Home Loan Fixed - 3 Year Fixed Rate (Owner Occupier)
A competitive 3 year fixed rate with a redraw facility and split loan options, plus no application fee.
3.84% 4.66% $0 $0 p.a. 95% Go to site More info
Newcastle Permanent Building Society Premium Plus Package Home Loan - New Customer Offer ($150,000+ Owner Occupier)
Apply for a new owner occupier loan or refinance from another lender and receive this discounted rate.
3.74% 4.12% $0 $395 p.a. 95% Go to site More info
IMB Budget Home Loan - LVR <=90% (Owner Occupier)
A competitive budget rate without any unwanted bells and whistles.
3.87% 3.92% $445 $0 p.a. 90% Go to site More info
Switzer Home Loan
No upfront or ongoing fees and a competitive variable rate for owner occupiers.
3.89% 3.89% $0 $0 p.a. 90% Go to site More info
Greater Bank Ultimate Home Loan - Discounted Variable ($150K+ Owner Occupier)
A discounted rate with 100% offset account. NSW, QLD and ACT residents only.
3.89% 4.27% $0 $375 p.a. 85% Go to site More info
loans.com.au Essentials - Variable Refinancers Only (Owner Occupier, P&I)
A low-interest rate loan suited for refinancing with no application or ongoing fees.
3.59% 3.61% $0 $0 p.a. 80% Go to site More info
State Custodians Standard Variable Spring Special - LVR 90% (Owner Occupier)
Special Owner Occupier Rate. Free Offset Account.
3.69% 4.02% $0 $299 p.a. 90% Go to site More info
Bank Australia Premium Home Loan Package - 2 Year Fixed (Owner Occupier) LVR < 80%
Buy a new home even if you haven't yet sold your existing one with the bankmecu Bridging Loan
3.69% 4.24% $0 $350 p.a. 95% Go to site More info
IMB Accelerator Home Loan  - LVR <=80% $300k+ (Owner Occupier)
A two year discounted rate which reverts to an ongoing life of loan discount afterwards.
3.64% 4.39% $445 $0 p.a. 80% Go to site More info
Greater Bank Great Rate Home Loan - Discounted Variable ($150K+ Owner Occupier)
A competitive rate with redraw facility. NSW, QLD and ACT residents only.
3.89% 3.89% $0 $0 p.a. 85% Go to site More info
Beyond Bank Low Rate Special Home Loan
A special low variable rate for Owner Occupier with 100% offset account and no application or ongoing fees.
3.73% 3.73% $0 $0 p.a. 70% Go to site More info
Newcastle Permanent Building Society Fixed Rate Home Loan - 2 Years Fixed (Owner Occupier)
Enjoy a low interest rate and borrow up to 95% (with LMI) of your home value.
3.69% 4.76% $0 $0 p.a. 95% Go to site More info
ClickLoans The Online Investor Home Loan - LVR <70%
An investment home loan with competitive rate and 100% offset account.
3.79% 3.79% $0 $0 p.a. 70% Go to site More info
Greater Bank Ultimate Home Loan - Discounted 5 Year Fixed ($150K+ Investor)
A discounted 5 years fixed rate with a redraw facility and no application fee.
4.09% 4.55% $0 $375 p.a. 85% Go to site More info
Greater Bank Ultimate Home Loan - Discounted 2 Year Fixed ($150K+ Owner Occupier)
Discount off an already competitive 2 year fixed rate for loans over $150k. NSW,QLD and ACT residents only.
3.74% 4.40% $0 $375 p.a. 85% Go to site More info
Bankwest Complete Home Loan Package Fixed - 5 Year Fixed Rate LVR <90% (Owner Occupier)
Get the security of knowing your repayments with this 5 year fixed rate package home loan.
3.98% 4.35% $0 $395 p.a. 90% Go to site More info
AMP Essential Home Loan  -  Owner Occupier
Take advantage of a redraw facility, competitive variable rate and no application or settlement fees for a limited time.
3.98% 4.00% $350 $0 p.a. 90% Go to site More info
Bank Australia Premium Home Loan Package - LVR<=80% $700k + (Owner Occupier)
Enjoy the discounted interest rate with redraw facility and no ongoing fees.
3.74% 4.09% $0 $350 p.a. 95% Go to site More info
CUA Kick Start Variable Home Loan - 2 Years Introductory (New Investment Only)
Enjoy a 2 year introductory rate with CUA Kickstart Variable Home Loan.
3.69% 4.28% $600 $0 p.a. 90% Go to site More info
Newcastle Permanent Building Society Fixed Rate Home Loan - 1 Year Fixed (Owner Occupier)
Get a short term fixed rate for that investment property with no application or ongoing fees.
3.69% 4.87% $0 $0 p.a. 95% Go to site More info
Switzer Fixed Rate Home Loans - 2 Years Fixed Rate
A competitive 2 year fixed rate with your very own lending service manager.
3.97% 3.99% $0 $0 p.a. 80% Go to site More info
Australian Unity Health, Wealth and Happiness Package - (Owner Occupier)
Get a 0.60% discount on your rate, a 100% offset account and no ongoing fees.
3.99% 4.02% $600 $0 p.a. 90% Go to site More info
3.85% 4.26% $0 $395 p.a. 80% Go to site More info
CUA Fixed Rate Home Loan - 2 Year Fixed (Owner Occupier)
A fixed home loan with no ongoing fees and flexible repayments options.
3.69% 4.56% $600 $0 p.a. 95% Go to site More info
IMB Essential Home Loan - LVR < 80% (Owner Occupier)
Access to redraw facility and offset account without the annual fee.
4.09% 4.09% $0 $0 p.a. 80% Go to site More info
3.89% 3.89% $0 $0 p.a. 80% Go to site More info
NAB Base Variable Rate Home Loan - Owner Occupier (P&I)
A competitive no frills home loan with no application fees for a limited time. 250,000 Velocity Frequent Flyer point offer, conditions apply.
4.10% 4.14% $0 $0 p.a. 95% Go to site More info
Australian Unity Wealth Builder Investor Package Home Loan - Variable
An investment loan with no ongoing fees and borrow up to 90% LVR.
4.19% 4.22% $600 $0 p.a. 90% Go to site More info
NAB Choice Package Variable Rate - $250k to $749,999 P&I (Owner Occupier)
A packaged low rate interest offer from NAB. Includes mortgage offset.
4.40% 4.79% $0 $395 p.a. 95% Go to site More info
ME Bank Flexible Home Loan Fixed - 2 Year Fixed Rate (Owner Occupier)
No application or ongoing fees and a competitive 2 year fixed rate.
3.84% 4.75% $0 $0 p.a. 95% Go to site More info
Westpac Flexi First Option Home Loan - 3 Years Introductory Special Offer (New Owner Occupier, P&I)
A limited time deal for new owner occupiers. Advertised rate includes 1.03%p.a. discount for the first two years.
3.99% 4.37% $0 $0 p.a. 95% More info
NAB Choice Package Home Loan - 5 Year Fixed (Owner Occupier)
A competitive loan with flexible features. 250,000 Velocity Frequent Flyer point offer, conditions apply.
4.59% 5.02% $0 $395 p.a. 95% Go to site More info
Suncorp Home Package Plus Fixed - 3 Year Fixed Rate (Special Offer $150k+ LVR <=90% Owner Occupier)
Lock in a special offer rate for 3 years for loans over $150k with LVR below 90%.
3.64% 4.26% $0 $375 p.a. 90% More info
Commonwealth Bank Wealth Package Fixed Home Loan - 2 Year Fixed (Owner Occupier)
Fee free extra repayments available during the fixed term. $1,250 cash back offer for refinancers. Conditions apply.
3.84% 4.97% $0 $395 p.a. 95% More info
St.George Fixed Rate Advantage Package -  2 Year Fixed Rate (Owner Occupier)
A discounted package rate for owner occupiers with the ability to package a Qantas rewards earning Amplify credit card. $1,500 cash back available for refinancers, conditions apply.
3.99% 5.07% $0 $395 p.a. 95% More info
Westpac Fixed Options Home Loan Premier Advantage Package - 2 Years
A low interest rate home loan with a low service fee.
3.99% 4.97% $0 $395 p.a. 95% More info
St.George Basic Home Loan - Promotional Rate (Owner Occupier, P&I)
A no frills loan with a competitive rate and a maximum LVR of 95%.
4.08% 4.09% $0 $0 p.a. 95% More info

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iConnect Financial mortgage brokers work with a range of well known lenders to find you the right home loan.

Fill in your details in the form to the left and a local mortgage broker from iConnect Financial will contact you at a time which suits.

You’ll be able to discuss your goals and what home loan you’re looking for, and your iConnect Financial broker will help you select the right loan. They’ll even help you with the paperwork and application process.

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Compare cheap* home loans for December 2016

Home loanInterest rateComparison rate
Reduce Home Loans Rate Buster Standard Variable - LVR <= 80%3.35% p.a.3.35% p.a.
loans.com.au Essentials - New Purchases Only3.39% p.a.3.41% p.a.
Greater Bank Ultimate Home Loan - Discounted 1 Year Fixed3.59% p.a.4.42% p.a.
State Custodians Standard Variable Spring Special - LVR 80%3.59% p.a.3.92% p.a.

What ‘cheapest’ actually means

The cheapest home loan for you may not be the cheapest for someone else. Everyone is different, so you need to determine which home loan is the cheapest based on your borrowing capacity, your deposit, the features you need and how soon you plan to repay your loan. Depending on your needs, the cheapest home loan could be:

  • A low rate loan
  • A low fee loan
  • A loan with a shorter term
  • A loan with added features

Low rate loans

This is probably what most people have in mind when they they think about finding the cheapest home loan. A low interest rate makes a massive difference to the overall expense of a home loan. Just look below to see how much of a difference it can make, all things being equal.Cheapest home loans

Typically, low interest rates are offered on basic home loans, or loans from lenders who have been able to reduce their costs, such as online lenders. Sometimes lenders will also offer very low fixed rates as promotions to secure new business. Once the fixed period ends, the rate can revert to a less competitive variable rate, so be sure to ask lenders what their revert rate will potentially be.

It’s also important to consider the different types of rates on offer:

Standard Variable Rate

This is the standard headline rate on offer from the lender. It can change at any time, based on moves by the Reserve Bank of Australia, the lender’s cost of funds or regulatory change. Have a look at some of the reasons lenders change their rates.finding the cheapest home loan rates

Ongoing Discount Rate

This is a discount off a lender’s headline rate offered to entice borrowers, and can be dependent on factors such as special promotions, the borrower’s credit history and the loan-to-value ratio. Package loans can also offer discounts  in exchange for opening transaction accounts and credit cards with the lender. Bear in mind that they also usually charge an annual fee, so be sure that the discounts outweigh this fee. Some package loans also offer discounted insurance products and fee waivers for other products.

Fixed Rate

These rates remain locked in for a predetermined period, usually one, three or five years. While borrowers can secure some certainty that their home loan repayment won’t rise for the fixed term, fixed rate loans also mean they won’t see the benefit from any downward move on rates.

Low rate loans: Pros and Cons

PROSCONS
  • Can significantly lower monthly repayments
  • May lack features
  • Total cost of loan is reduced
  • Introductory rate can jump to less competitive variable rate
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Low fee loans

It’s important to look beyond the headline rate when you’re considering a loan. Most loans have upfront fees, ongoing fees and discharge fees associated with them that can cost thousands.

The good news is that loan fees are sometimes avoidable. Many low fee loans will waive or reduce certain fees. Some lenders will also offer a cashback when you're approved, which can reduce the impact of any fees.

When comparing loans it's a good idea to look at fees and rates together. Some loans may have low interest rates but high ongoing fees, as is the case with most package loans. These home loans charge an annual fee of $200 - $400 per year, but offer discounted interest rates and upfront fee waivers.

If you're ever not sure if a low interest rate means a loan is actually cheap, look at the comparison rate. This is an interest rate which takes into account some of the fees you'll pay, and gives you a better idea of the loan cost.

What’s a comparison rate?

A comparison rate gives borrowers an idea of the true cost of a loan. It takes into account both the loan’s interest rate and any associated fees and charges, and expresses this as a single percentage figure. Remember, a low advertised rate might not seem so low when fees and charges are taken into account.

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Shorter loan periods

The quicker you pay off your home loan, the less total interest you'll pay. 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. Look below to see the difference in the total cost of two loans.Cheapest home loan - 25 vs 30 years example

Why does this happen? With a longer loan term you're paying interest for longer. This makes the total cost of your loan much higher.

A 20 year home loan vs a 30 year home loan

Scenario: $400,000 loan with an interest rate of 5%
30 years20 years
Repayments: $2,147.29 per monthRepayments: $2,639.82 per month
Total interest payable over 30 years: $373,023.14Total interest payable over 20 years: $233,557.51

As you can see, in this example, repayments on a shorter term loan would be just under $500 more each month, but would save you $139,465.63 in interest payable over that time.

As you can see, in this example, repayments on a shorter term loan would be just under $500 more each month, but would save you $139,465.63 in interest payable over that time.

Shorter loan term: Pros and Cons

ProsCons
  • Overall loan can cost significantly less
  • Higher monthly repayments
  • Loan is paid off faster
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Loans with added features

There's a reason why banks advertise home loan features like offset accounts, interest only payments and loan portability. This is because they're popular features which can save you money if you're a savvy borrower. Here are a few common features offered on home loans.

Offset accounts

Offset accounts can save you interest, which means you can pay your loan off sooner. An offset account is a transaction account linked to your loan which reduces the amount of interest you pay on your loan. For example, if you have a $200,000 loan and $10,000 in a 100% offset account, you will only pay interest on $190,000. There are 100% offset accounts, meaning every dollar in the account works to reduce the same amount on your loan, and partial offset accounts, where a percentage of each dollar offsets the interest due. Partial offset accounts are much rarer today, so you're likely to only encounter 100% offset accounts. Look out for monthly offset account fees - most lenders don't charge them, so if you come across a loan that does it might pay to look elsewhere.

Loan portability

Loan portability helps you to move your loan to a new property without the high costs of exiting a loan and taking out a new one.

Interest only payments

Interest only payments can reduce your repayments because you no longer have to pay the actual loan principal off. The downside of this is it can extend the loan term, and end up making the loan more expensive in the long run.

Unlimited extra repayments

The cheapest and most affordable home loan could be the one which lets you pay your home loan your way. This might mean not charging you penalty fees to make extra repayments. Note that while most lenders allow you allow you to pay variable rate home loans off early with no problem, fixed loans will charge a penalty fee known as break costs. Many fixed rate loans today have an amount of extra repayments they will allow during the fixed term without charging penalty fees, so find this out if you're locking in a rate.

Loans with added features: Pros and Cons

ProsCons
  • Offer more flexibility
  • Can carry additional fees
  • Can help pay off home loan faster
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How to find the ‘cheapest’ home loan

Now that you’ve defined what money-saving characteristics best suit your needs, it’s time to find the home loan that best matches your circumstances.

Compare cheap rates

Compare low rate and/or low fee home loans in the table above.

Compare loan features

Find loans with features such as offset accounts, portability or unlimited repayments.

See how much you could save by shortening your loan term

The loan repayment calculator below allows you to change the loan term to see the effect this has on the total cost of a loan.

The most common questions we get about cheap home loans

What's the best way to find the cheapest home loan?

This depends on who you speak to, and it depends on what you're looking for. Online lenders can be good to approach if you don't mind not having branch access. They are often able to offer cheaper products because of this. But sometimes banks will offer special low rates and fee waivers from time to time. They can also offer discounted rates as part of a package home loan.

If you feel that you might not know enough about home loans to find the cheapest, a mortgage broker could be a good option for you.

I'm looking to buy my first home, what's the cheapest home loan available?

The cheapest home loan can change from month to month, or even week to week during competitive periods in the market. A better option is to compare home loans based not only on the cost but also on how well it will suit you, and whether you're eligible for the loan.

A rate I've seen looks too good to be true, how can I know if I should trust a lender?

You should always be comfortable with the lender you're planning on going with. If you're not aware of a lender, try calling them up to find out about them and their service level before lodging an application. Speak to previous customers or read customer reviews on sites like Product Review. You can also try speaking to a mortgage broker to find out their experiences when dealing with them. Often, a little known brand might be funded by a larger bank, as is the case with NAB backing UBank, or Firstmac backing loans.com.au.

What are the cheapest home loan providers?

Home loan providers offering low cost loans used to be those which operate without branch networks. Many traditional banks can today match or even exceed the competitive home loans offered by these cheaper home loan providers. Branch networks are expensive to banks. They cost money to maintain the building and pay staff. Brands such as ING DIRECT, loans.com.au, UBank and more, operate completely online and over the phone. This eliminates a significant portion of the cost, and this translates into cheaper products.

Are fixed rates cheaper than variable rates or vice versa?

This will depend on the loans themselves. The major cost difference between a fixed and variable loan is the possibility of having to pay break costs if you try to leave a fixed rate loan before the term ends. If you don't leave a fixed rate home loan early this won't be a factor to consider. Another difference between the two loans is that variable rates can fluctuate, meaning they could go lower or higher than a fixed rate depending on the economic factors.

Read more about fixed vs variable rates

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Related Posts

HSBC Home Value Loan - Resident Owner Occupier only

Enjoy the low variable rate with $0 ongoing fee and borrow up to 90% LVR.

ME Bank Basic Home Loan - LVR <=80% Owner Occupier

A low variable rate loan with no application or ongoing fees.

NAB Choice Package Home Loan - 3 Year Fixed (Owner Occupier)

Receive discounts on interest rates with the Choice Package. 250,000 Velocity Frequent Flyer point offer, conditions apply.

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41 Responses to 25+ of the cheapest home loans compared*

  1. Default Gravatar
    enlightened | August 17, 2016

    Why dont you list the money magazines best home loan winner for 2016. With loan rate of 3.35 Reduce home loans is the clear winner and not even a mention?

    • Staff
      Jodie | August 30, 2016

      Hi there,

      Thank you for contacting finder.com.au we are a financial comparison website and general information service.

      We appreciate your feedback and will take it on board, however, we list a selection of loans on this page and it is by no means comprehensive if you would like to find out more about how we operate please read our disclaimer.

      With regards to the Reduce Home Loans Rate Buster home loan, it is only suitable for borrowers who have a loan-to-value ratio of under 80% or a minimum deposit of 20% as well as a loan amount below $500,000, whereas we have a range of loans to suit a large selection of customers on this page.

      Thanks again for your feedback we do always like to hear from our users.

      Regards
      Jodie

  2. Default Gravatar
    Ewen | August 3, 2016

    Is U Bank part of NAB and if so why can’t NAB give me the same competitive interests rate with no fees.

    • Staff
      May | August 3, 2016

      Hi Ewen,

      Thanks for your question. You’ve come through to finder.com.au we are an Australian financial comparison website and general information service, not actually NAB.

      Yes, UBank is an online lender that is backed by NAB. Though the two offer home loan products, they differ in the interest rates for their products, where UBank offers more competitive rates and products as they don’t have physical branches like NAB. NAB is a big bank and offers a wide variety of financial products than UBank. For more information, you may also like to read our article on how home loan lenders differ from each other.

      Hope that helps.

      Cheers,
      May

  3. Default Gravatar
    Flapjackswimming | May 31, 2016

    whilst all these low rates are enticing, I am looking for a line of credit (portfolio loan). This feature has been great but it isn’t clear when looking at other options if this is available. Could you point me in the right direction?
    Regards
    john

    • Staff
      Marc | June 2, 2016

      Hi John,
      thanks for the question.

      You can compare line of credit loans here to get an idea of the rates available for these types of loans.

      I hope this helps,
      Marc.

  4. Default Gravatar
    Mohammed | May 9, 2016

    We have migrated to Sydney with 457 skilled migration 4 year visa and my wife working as a GP with 5 year contract.

    please need to find what kind of and how much with LTV we can borrow for a mortgage.

  5. Default Gravatar
    Bill | February 25, 2016

    What does comparison rate mean?

    • Staff
      Belinda | February 26, 2016

      Hi Bill,

      That’s a great question.

      All Australian lenders are required to display the comparison rate as this reflects the true cost of the home loan. While the interest rate is the percentage of your loan that you’ll pay in additional to the original loan amount, the comparison rate is a percentage that is calculated by adding the interest rate, plus any additional fees and charges that may apply to the loan.

      When comparing different home loans, always compare the comparison rate to ensure that you understand the total cost of the loan.

      As a rule of thumb, you should be cautious about any home loan that has a 1-2% point difference between the interest rate and the comparison rate.

      Kind regards,
      Belinda

  6. Default Gravatar
    manu | February 20, 2016

    I want to apply for a house loan.our budget is 35lakhs.which bank is better

    • Staff
      Belinda | February 23, 2016

      Hi Manu,

      Thanks for your enquiry.

      As finder.com.au is an online comparison service, we are not licensed to advise which home loan lender is ‘better’. If you need personalised advice regarding your home loan options, you should consult a licensed mortgage broker.

      A broker will be able to help you understand your borrowing capacity and they can leverage their network of lenders to find one that’s likely to review your application.

      All the best,
      Belinda

  7. Default Gravatar
    Hans | February 11, 2016

    I am retired now and have been advised I cannot get a mortgage. Yet on capacity to pay I can afford up to $140K based on what I am currently paying in rent. So how is this fair? NB I don’t want $140K but $80K might be nice. I was unfortunate enough to get caught up in the GFC so have to start again from scratch.

    • Staff
      Belinda | February 12, 2016

      Hi Hans,

      Thanks for getting in touch, and I’m sorry to hear about your situation.

      Unfortunately many banks are conservative about lending to retired borrowers due to the risk involved. Your best course of action would be to speak to a licensed mortgage broker regarding your borrowing options.

      A broker will be able to help you understand your borrowing capacity and they can also draw upon their panel of lenders to find one that may be more inclined to review your application. Additionally, a broker can negotiate for better terms (e.g. a competitive rate) on your behalf.

      Your ability to qualify for a home loan during retirement will depend on your income, assets, credit history and any existing debt that you have (e.g. personal loans or credit cards). Most lenders will treat these kind of applications on a case-by-case basis.

      Depending on your needs, you may want to consider a fixed rate home loan to offer security or otherwise you may want to find a home loan with minimal ongoing fees.

      All the best,
      Belinda

  8. Staff
    Belinda | February 2, 2016

    Hi Jeffrey,

    Thanks for reaching out.

    Generally, applying for a home loan while on the pension can be difficult but there are still options available to you. Your best course of action would be to speak to a licensed mortgage broker as they’ll be able to draw upon their panel of lenders to find a specialist lender that may be more likely to review your application.

    On this page, you can learn more about applying for a home loan while receiving a Centrelink benefit and you can see which conditions may apply to your benefit type. Keep in mind that most lenders only accept a pension benefit as a secondary source of income when applying for a home loan.

    Kind regards,
    Belinda

  9. Default Gravatar
    jeffery | January 27, 2016

    I would like to know anyond that would lend me a small loan to purches a home I pay $1660-00 rent and would half it by buying my place saving me $800-00 a month to do so but because I am a pensioner I cant get any where and the rent just goes up all the time need to move bad

  10. Default Gravatar
    paul | July 8, 2015

    i was hoping to find out when switching home loan providers to get a better interest rate home long do they require your employment status to be.

    As im about to start a new job.

    • Staff
      Jodie | July 8, 2015

      Hi Paul,

      Thank you for your comment on finder.com.au, a financial comparison website.

      Each lender has their own set of lending criteria that a borrower must meet before they can take out a loan but in general they prefer that you are outside of your probationary period but it would be best to contact a mortgage broker to discuss your specific situation.

      Regards
      Jodie

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