How to find the cheapest home loan rate

By looking carefully at interest rates, fees and features you can find the cheapest home loan that works for you and saves you thousands.

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UBank Home Loan Offer

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

2.84 % p.a.

variable rate

2.84 % p.a.

comparison rate

UBank Home Loan Offer

Apply for the UBank UHomeLoan Variable Rate - Discount offer for Owner Occupiers, P&I Borrowing over $200,000 and get a low rate plus no upfront or ongoing fees as well as unlimited redraws.

  • Interest rate of 2.84% p.a.
  • Comparison rate of 2.84% p.a.
  • Application fee of $0
  • Maximum LVR: 80%
  • Minimum borrowing: $200,000
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Rates last updated December 14th, 2019
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Loan purpose
Offset account
Loan type
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Name Product Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment Short Description
UBank UHomeLoan Variable Rate - Discount offer for Owner Occupiers, P&I Borrowing over $200,000
2.84%
2.84%
$0
$0 p.a.
80%
Enjoy flexible repayments, a redraw facility and the ability to split your loan. Plus, pay no application or ongoing fees.
St.George Basic Home Loan - LVR 60% to 80% (Owner Occupier, P&I)
2.99%
3.01%
$500 (waived for loans above $150,000)
$0 p.a.
80%
Online only cashback offer: Refinancers borrowing $250,000 or more can get a $4,000 cashback for their first application (Other terms, conditions and exclusions apply). Buyers and refinancers can get this competitive variable interest rate. Application fee waived for loans above $150,000.

loans.com.au Smart Home Loan - (Owner Occupier, P&I)
2.88%
2.90%
$0
$0 p.a.
80%
Get one of the lowest variable interest rates on the market and pay 0 application or ongoing fees.
Suncorp Back to Basics Home Loan - Better Together Special Offer $150k+ LVR<=90% Incl. LMI (Owner Occupier, P&I)
3.03%
3.04%
$0
$0 p.a.
90%
Get one free online redraw per month and pay no ongoing fees. Application fees are waived for loans above $150,000.
Tic:Toc Live in 10% deposit Variable Rate - Principal & Interest
2.79%
2.80%
$0
$0 p.a.
90%
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.
Virgin Reward Me Fixed Rate Home Loan - 2 Year $300k+ Special offer (Owner Occupier, P&I)
2.79%
3.30%
$0
$10 monthly ($120 p.a.)
80%
Buy your home and lock in a low rate for the first two years. Available with a 10% deposit.
State Custodians Low Rate Home Loan with Offset - LVR up to 70% (Owner Occupier, P&I)
2.83%
2.85%
$0
$0 p.a.
70%
A competitive rate with no application or ongoing fee.
Tic:Toc Live in Loan Fixed Rate Home Loan - 3 Year (Owner Occupier, P&I)
2.84%
2.92%
$0
$0 p.a.
90%
Apply online and get fast approval for this fixed rate, low-fee loan with redraw facilities. Add a 100% offset account for $10 a month.
Bank of Melbourne Basic Home Loan - LVR above 60% up to 80% (Owner Occupiers, P&I)
2.99%
3.01%
$500 (waived for loans above $150,000)
$0 p.a.
80%
Online cashback offer: Refinancers borrowing $250,000 or more can get a $4,000 cashback for their first application (Other terms, conditions and exclusions apply). A low variable interest rate for home buyers and refinancers. Application fee waived for loans above $150,000.
loans.com.au Smart Home Loan - (Investor, P&I)
3.19%
3.21%
$0
$0 p.a.
80%
A competitive variable investor rate for borrowers with 20% deposits. Low fees, redraw facilities and repayment flexibility.
Tic:Toc Live in Loan Fixed Rate Home Loan - 1 Year (Owner Occupier, P&I)
2.84%
2.94%
$0
$0 p.a.
90%
Apply online and get fast approval for this fixed rate, low-fee loan with redraw facilities. Add a 100% offset account for $10 a month.
BankSA Basic Home Loan - Promotional Rate (Owner Occupier, P&I)
2.99%
3.01%
$500 (waived for loans above $150,000)
$0 p.a.
80%
Online only cashback offer: Refinancers borrowing $200,000 or more can get a $4,000 cashback for their first application (Other terms, conditions and exclusions apply). Buyers and refinancers can get this competitive variable interest rate. Application fee waived for loans above $150,000.
State Custodians Low Rate Home Loan with Offset - LVR 80% to 90% (Owner Occupier, P&I)
3.20%
3.22%
$0
$0 p.a.
90%
Save on interest with a free 100% offset account and buy your property with just a 10% deposit.
Bankwest Complete Home Loan Package Variable - $200k+ LVR <=80% (Owner Occupier, P&I)
3.05%
3.50%
$0
$395 p.a.
80%
A low variable rate loan with a 100% offset account and package discounts.
Mortgage House Advantage Home Loan - 70 (PAYG Essentials)
2.79%
2.83%
$600
$10 monthly ($120 p.a.)
70%
A very low variable interest rate for home buyers with a 30% deposit. This product has a 100% offset account.
UBank UHomeLoan - 3 Year Fixed Rate (Owner Occupier, P&I)
2.69%
3.19%
$395
$0 p.a.
80%
A competitive fixed interest rate loan with no ongoing fees. Requires a 20% deposit.
Virgin Reward Me Fixed Rate Home Loan - 3 Year $300k+ Special offer (Owner Occupier, P&I)
2.79%
3.26%
$0
$10 monthly ($120 p.a.)
80%
A competitive fixed rate mortgage available with a 10% deposit.
State Custodians Low Rate Home Loan with Offset - LVR up to 80% (Owner Occupier, P&I)
2.90%
2.92%
$0
$0 p.a.
80%
This loan offers a competitive variable rate and a 100% offset account to help save you on interest repayments.
Mortgage House Advantage Home Loan - 80 (PAYG Essentials)
2.88%
2.92%
$600
$10 monthly ($120 p.a.)
80%
A competitive variable rate for home buyers with a 20% deposit. This product has a 100% offset account.
Virgin Reward Me Variable Home Loan - LVR <= 80% ($500k to $750k Owner Occupier, P&I)
3.18%
3.32%
$0
$10 monthly ($120 p.a.)
80%
This flexible, competitive variable rate mortgage comes with a 100% offset account and redraw facility.
Beyond Bank Total Home Loan Package - Variable LVR ≤80% (Owner Occupier, P&I)
3.15%
3.56%
$0
$395 p.a.
80%
A low rate variable mortgage for home buyers. Comes with a 100% offset account and has no application fee.
UBank UHomeLoan - 1 Year Fixed Rate (Owner Occupier, P&I)
2.74%
3.38%
$395
$0 p.a.
80%
Fix your mortgage for 1 year with a very competitive rate and no ongoing fees.
Virgin Reward Me Fixed Rate Home Loan - 2 Year LVR < 90 (Owner Occupier, P&I)
3.44%
3.39%
$0
$10 monthly ($120 p.a.)
90%
Enjoy a competitive fixed rate with no application fee.
UBank UHomeLoan Variable Rate - Discount Offer for Investor Variable P&I Rate
3.24%
3.24%
$0
$0 p.a.
80%
Get a discounted, low-fee investor loan from a convenient online lender. 20% deposit required.
Virgin Reward Me Variable Home Loan - LVR <=80% ($500k to $750k Owner Occupier, IO)
3.74%
3.76%
$0
$10 monthly ($120 p.a.)
80%
A variable rate home loan with no application fees.

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Credit services for Aussie Select, Aussie Activate and Aussie Elevate products are provided by AHL Investments Pty Ltd ACN 105 265 861 (“Aussie”) and its appointed credit representatives, Australian Credit Licence 246786. 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 Activate products is provided by Pepper Finance Corporation Limited ACN 094 317 647 (“Pepper”). Pepper Group Limited ACN 094 317 665, Australian Credit Licence 286655 acts on behalf of Pepper. Credit services for Aussie Elevate products are provided by AHL Investments Pty Ltd ACN 105 265 861 Australian Credit Licence 246786 (“Aussie”) and its appointed credit representatives. Aussie is a trade mark of AHL Investments Pty Ltd ABN 27 105 265 861. Credit and any applicable offset accounts for Aussie Elevate are issued by Bendigo and Adelaide Bank Limited ABN 11 068 049 178 AFSL / Australian Credit Licence 237879.

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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.

A fast way to find some of the lowest current rates is to check out our monthly low rate mortgage round up . Here, finder collects the lowest rates available on our site each month, with information on fixed, variable, owner occupier and investor rates.

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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Important Information*
Logo for St.George Basic Home Loan - LVR 60% to 80% (Owner Occupier, P&I)
St.George Basic Home Loan - LVR 60% to 80% (Owner Occupier, P&I)

Online only cashback offer: Refinancers borrowing $250,000 or more can get a $4,000 cashback for their first application (Other terms, conditions and exclusions apply). Buyers and refinancers can get this competitive variable interest rate. Application fee waived for loans above $150,000.

Logo for UBank UHomeLoan Variable Rate - Discount offer for Owner Occupiers, P&I Borrowing over $200,000
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 2.84% p.a. and a 2.84% p.a. comparison rate.

Logo for Suncorp Back to Basics Home Loan - Better Together Special Offer $150k+ LVR<=90% Incl. LMI (Owner Occupier, P&I)
Suncorp Back to Basics Home Loan - Better Together Special Offer $150k+ LVR<=90% Incl. LMI (Owner Occupier, P&I)

Get one free online redraw per month and pay no ongoing fees. Application fees are waived for loans above $150,000.

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71 Responses

  1. 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

    • Avatarfinder Customer Care
      NikkiSeptember 13, 2019Staff

      Hi Rix,

      Thanks for getting in touch! To know how you can refinance your current mortgage, you can refer to this page. On the page, you will find a table that compares the features and benefits of each refinance home 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 for 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 the calculator we have on this page.

      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

  2. 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.

      You may check out lenders on this PAGE. Please seek professional help from a mortgage broker since you’re having a hard time finding the right bank/lender.

      I hope this helps.

      Thank you and have a wonderful day!

      Cheers,
      Jeni

  3. 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.

      Please see this page for more info on guarantor loan. Basically, 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.

      I hope this helps.

      Thank you and have a wonderful day!

      Cheers,
      Jeni

  4. 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.

      Please check out this page to compare investment home loan rates. Kindly proceed to the comparison table. Please enter the loan amount and the loan term then click the orange Calculate button to start comparing your loan options. From the page I sent you, 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

  5. 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.

      Kindly refer to this page to learn more about Parent Assist Home Loan. As per the said page, the Parent Assist Home Loan 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

  6. 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 for you to visit this link to check on loans for unemployed users. You may need to reach out directly to the lender to check what they consider as income during your application of the loan. Hope this helps!

      Cheers,
      Reggie

  7. 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.

    • Avatarfinder Customer Care
      NikkiJune 12, 2018Staff

      Hi Poida,

      Thanks for your message.

      While we can provide you with general information, please note that we’re a product comparison website and we do not represent any company we feature on our site. We’re here to assist you in your buying decision process hence we cannot recommend product / service that is rightfully fit for you.

      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 to guide you in this process.

      Cheers,
      Nikki

  8. 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.

      Reduce Home Loans is not a bank nor a lender. 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. However, we have a dedicated page about RHL here.

      Cheers,
      Joel

  9. 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

  10. Default Gravatar
    PeterMay 31, 2017

    cheapest interest on reverse mortgage loan ?

    • Default Gravatar
      JonathanMay 31, 2017

      Hi Peter!

      Thanks for the comment.

      You may use this comparison page that we have for Reverse Mortgage to shop around with the rates from different lenders.

      Just click “More Info” green button if you wish to proceed with a specific lender.

      Hope this helps.

      Cheers,
      Jonathan

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