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.

Cheapest Home Loan Offer

Macquarie Bank Basic Home Loan - LVR up to 70% (Owner Occupier, P&I)

3.44 % p.a.

variable rate

3.44 % p.a.

comparison rate

Cheapest Home Loan Offer

A simple mortgage with no application or ongoing fees that has extra repayments plus split and redraw options. Requires a 30% deposit.

  • Interest rate of 3.44% p.a.
  • Comparison rate of 3.44% p.a.
  • Application fee of $0
  • Maximum LVR: 70%
  • Minimum borrowing: $150,000
  • Max borrowing: $5,000,000
Enquire now
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Rates last updated June 18th, 2019
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Loan purpose
Offset account
Loan type
Repayment 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
3.44%
3.44%
$0
$0 p.a.
70%
A simple mortgage with no application or ongoing fees that has extra repayments plus split and redraw options. Requires a 30% deposit.
3.59%
3.59%
$0
$0 p.a.
80%
Enjoy flexible repayments, a redraw facility and the ability to split your loan. Plus, pay no application or ongoing fees. UBank will cut its variable rates for new and existing customers on June 28, making this rate even lower.
3.47%
3.48%
$0
$0 p.a.
90%
Get a low interest rate loan with no ongoing fees. Plus you can make extra repayments and free redraw online. Available with just a 10% deposit.
3.39%
4.41%
$300
$10 monthly ($120 p.a.)
90%
A low fixed rate loan that lets you borrow up to 90% of your property's value.
2.99%
4.09%
$395
$0 p.a.
80%
A one year fixed rate offer with no ongoing bank fees.
3.58%
4.26%
$0
$395 p.a.
80%
Get a low 3 year fixed rate with a 100% offset account and package discounts.
3.24%
3.88%
$395
$0 p.a.
80%
A competitive fixed interest rate product with no ongoing bank fees.
3.44%
4.51%
$300
$10 monthly ($120 p.a.)
90%
Home buyers can lock in a very competitive fixed interest rate for 2 years.
3.54%
3.54%
$0
$0 p.a.
80%
Low fee loan with extra repayments. Pay no application and ongoing fees and take advantage of split and redraw options.
3.43%
4.26%
$0
$395 p.a.
80%
Lock in a competitive rate for owner occupiers for two years. Extra repayments up to $30,000 over the life of the fixed period can be made.
3.65%
3.66%
$500 (if over 80% LVR)
$0 p.a.
80%
A competitive variable mortgage for home buyers. This loan has flexible repayments and an optional redraw facility.
3.57%
3.61%
$0
$0 p.a.
95%
A simplified mortgage with a low interest rate and a redraw facility. Approval fee waived for a limited time.
3.89%
4.29%
$0
$395 p.a.
95%
A package loan that offers discounts and a 100% offset account.
3.44%
3.48%
$0
$10 monthly ($120 p.a.)
80%
Get a competitive variable rate and a 100% offset account.
3.63%
4.85%
$0
$0 p.a.
90%
A low fixed rate package loan that's available with a 10% deposit.
3.49%
3.49%
$0
$10 monthly ($120 p.a.)
95%
Lock in a competitive rate for three years while you pay off your home. 100% offset account attached.
3.59%
3.99%
$0
$395 p.a.
95%
Get interest rate discounts and waived fees on this package loan with a 100% offset account. $500 cashback offer for first homebuyers borrowing over 80% and paying LMI.
3.64%
4.63%
$300
$10 monthly ($120 p.a.)
90%
Low fixed rate loan for home buyers. Available with a 10% deposit. 100% offset account attached.
3.79%
3.79%
$0
$0 p.a.
95%
Competitive, flexible rate mortgage with simple features and low fees. Low deposit option available.
3.99%
4.00%
$500 (if over 80% LVR)
$0 p.a.
80%
A variable investment mortgage with flexible repayments and an optional redraw facility.
3.99%
3.99%
$0
$0 p.a.
80%
Get a discounted, low-fee investor loan from a convenient online lender. 20% deposit required. UBank will cut its variable rates for new and existing customers on June 28, making this rate even lower.
3.59%
3.48%
$0
$0 p.a.
70%
Get a low interest rate and a mortgage with flexible, basic features. No application or ongoing fees. Requires a 30% deposit.
3.69%
4.21%
$0
$10 monthly ($120 p.a.)
90%
Get a low discounted rate for 2 years plus a 100% offset account. And you can get the loan with a 10% deposit.
3.97%
4.28%
$0
$299 p.a.
80%
A competitive package rate for loans above $150,000. Optional 100% offset account.
3.79%
4.22%
$0
$395 p.a.
80%
Unlock a range of savings with this competitive package home loan offer. Offset account and redraw facility included.
3.74%
4.13%
$0
$349 p.a.
90%
Package your loan with other AMP products and save on rates and fees.
3.44%
3.70%
$0
$248 p.a.
70%
Borrowers with a 30% deposit can get this competitive rate. Cut down on interest costs with a 100% offset account.
3.74%
3.74%
$0
$0 p.a.
80%
Pay no application or ongoing fees and get access to a redraw facility and flexible repayment schedule. UBank will cut its variable rates for new and existing customers on June 28, making this rate even lower.
4.19%
4.22%
$0
$0 p.a.
90%
For a limited time, pay no application or settlement fees. You can also take advantage of a free redraw facility.
3.74%
3.74%
$0
$0 p.a.
70%
Investors with a 30% deposit can get this low rate loan to fund their property portfolio. Take advantage of split and redraw facilities.

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

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

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

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

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67 Responses

  1. 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

  2. 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

  3. 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

  4. 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

  5. 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

  6. 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

  7. 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

  8. 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

  9. Default Gravatar
    JOHNMay 14, 2017

    Looking to refinance a investment unit and pay to off in 4/5 years.
    Pay fortnightly $1300 . Looking for a home loan to achieve this,

    • Avatarfinder Customer Care
      LouMay 14, 2017Staff

      Hi John,

      Thanks for your question.

      If you are looking for a refinancing home loan for investment properties, you may compare your options on this page.

      Cheers,
      Anndy

  10. Default Gravatar
    ElaineMay 11, 2017

    If you are on a pension and own 90 percent of your home is a loan permitted

    • Default Gravatar
      ArnoldMay 11, 2017

      Hi Elaine,

      Thanks for your inquiry.

      Yes, pensioners are able to apply for home loans. The image below shows what options are available for you.

      Types of Loans

      For information on eligibility, requirements, and application process. You can visit this page. – https://www.finder.com.au/home-loans-for-pensioners

      If you have further concerns you may want to Reach out to a Broker which can give you a professional assessment and will guide you through the application.

      Hope this information helped.

      Cheers,
      Arnold

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