fixed rate home loans

How To Compare Home Loans From Different Banks

Rates and Fees verified correct on December 6th, 2016

The Australian home loan market is saturated with lenders and products, which makes it very important for you to compare the various options that are out there.

Comparing home loans is not always the easiest task to accomplish. There are a few reasons why.

Some lenders may offer the same products as one another, but will offer them under different circumstances. Certain borrowers might find it easier to get a loan from a specific lender, even if that loan has an almost identical feature set as a loan offered at another lender. An example of this is the loan to value ratio, or LVR offered by a lender. You may have to put down a higher deposit upfront in order to get a loan, even if that loan has similar features to a loan offered by another lender who requires a smaller down payment.

About how to calculate your LVR

Some lenders may also have unique features built into their loans that cannot be found with other providers. Things such as specific internet and mobile banking options, as well as unique customer service offerings can set a lender apart from the rest of the market. It can be hard to weigh unique features offered by one lender against the unique features offered by another.

Further information on How To Compare Home Loans From Different Banks

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Rates last updated December 6th, 2016
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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.
3.99% 4.81% $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.
3.99% 4.90% $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.
3.99% 5.00% $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

How you can compare loans from different banks

One of the biggest tools you have at your disposal when comparing home loans is the key facts sheet that can be found on most loan product pages or by contacting a lender and requesting it. Key facts sheets are information documents that lenders are required by law to provide to potential borrowers.

Here are two key facts sheets to serve as examples. These sheets were created on the Newcastle Permanent Building Society website. Both are variable rate loans of $150,000 over the course of 20 years. Let's run through some of the major pieces of information outlined in these sheets to show some of the major things you should take note of.

  • The top section is the 'What have you told us' portion of the facts sheet. This box details the parameters of the loan you are looking for and have input into the form. The specific name of the loan product is in this section.
  • The 'How does this loan compare?' section details the repayment methods and frequency allowed, as well as the interest rate and the comparison rate. These are important details in your decision process. The comparison rate is the interest rate of the home loan with fees factored into it. Therefore, the comparison rate is oftentimes a more important figure to look at when comparing two loans. Bear in mind that the comparison rate doesn't take into account your personal circumstances so be sure to take it with a grain of salt.
  • The next section is the 'Estimated cost of this home loan' . This section outlines exactly how much this loan will cost you to pay back. What makes this portion of the facts sheet very useful is the ratio of money paid back to the amount of money borrowed that is outlined. In our hypothetical examples, the Real Options Rate Home Loan will end up costing you $1.66 in repayments for every $1 you borrow, while the Real Deal Variable Rate Home Loan will cost you $1.60 for every dollar you borrow. This section also details the various fees associated with the loan as well as the cost of repayments per month and per year.

You will also be told how much your repayments would increase by should your loan interest rate increase by 1%. This is handy for borrowers who are looking at variable rate loans, as including interest rate increases in your budget is a smart idea. Even if you find yourself able to afford payments at the advertised rate, you may find yourself underwater should the rate rise.

  • The 'How can I repay my loan faster?' section will let you know if the loan comes with the ability to make extra repayments and calculates how quickly you will pay off the loan if you make an extra $200 in payments each month.

The second page of the key facts sheet is a generic outline of various features you may wish to include with your loan, as well as the lender's website and some information about the National Consumer Credit Protection Act of 2009.

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What to compare with your home loan

Even if lenders are offering very different loan options, you can still compare them successfully. Besides the interest rate and type of rate, consider the fees associated with a loan. Application fees, annual fees and monthly fees are all things you should look out for. Fees can add up and taking into account the comparison rate of a loan can be helpful when deciding between different loans.

The feature set of a loan is another important aspect of a loan that is vital to the comparison process. Even if a loan's comparison rate does not stack up favourably you should not always discount it immediately. Take a look at features such as offset accounts, redraw facilities, portability, account linking, the ability to split the interest type between fixed and variable, the repayment structure, if extra repayments are allowed, access to equity and more.

About home loan features

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Comparison example - fixed rate loans

Here we'll compare two different home loans in the same category—fixed loans. One loan is the ANZ Fixed Rate Home Loan and the other is the Commonwealth Bank Fixed Rate Home Loan.

Here's a comparison of two similar home loans from two different banks. This is using information found on both bank's websites. As you can see we've gone through and highlighted differences between the two in both features and jargon.

Feature

ANZ Fixed Rate

Commonwealth Bank Fixed Rate

Fixed rate term

Can fix for periods of: 1 - 5 years, 7 years and 10 years

Can fix for periods of: 1-5 years, 7 years, 10 years or 15 years

Application fee

Called a 'loan approval fee' and costs $600

Called an 'up-front establishment fee' and costs $600

Monthly fee

Called a 'loan administration fee' and costs $10 per month

Called a 'monthly loan service fee' and costs $8 a month

Package discounts

Yes, 'Breakfree Package', discounts fixed interest rate by 0.15%p.a. and comes with fee discounts, costs $375 per year

Yes, 'Wealth Package' comes with a 0.15%p.a. discount on fixed rates and fee discounts for an annual fee of $375

Interest-only options

Yes, you can pay interest only for up to 10 years

Yes, you can pay interest only for 1 - 15 years if the loan is an investment, or 1 - 10 years if the loan is for a home

Additional repayment options?

Yes, you can make up to a maximum of $5,000 or 5% of the loan amount extra per year (whichever is smaller).

Yes, you can make up to a maximum of $10,000 per year.

Maximum LVR

90% for new customers and 95% for eligible customers

Maximum LVR of 95%.

Rate lock?

Yes, called a 'Lock rate fee' and costs $750

Yes, costs $750 and only available for 1 - 5 year periods

Pre-approval

Yes, three months

Yes, six months

Offset account

Yes, a 100% offset account is offered for one year terms only

Yes, a partial offset account is offered

Interest in advance?

No

Yes, comes with a 0.20%p.a. discount on investment home loans of 1 - 5 year terms.

Learn more

Learn more about ANZ fixed rate loansLearn more about Commonwealth Bank Fixed Rate

Those comparing these two loans would also want to know what the interest rates and comparison rates for both of these loans would be both during the fixed term and also if the loan reverted to the standard variable rate after the fixed term ends.

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The features offered with a loan can be the make or break factor in determining the loan's viability. You need to ask yourself what you are looking for in a loan:

Learn more about comparing first home buyer home loans: Here

Learn more about line of credit home loans: Here

Learn more about what you can use a line of credit home loan for: Here

Consider comparing low rate home loans: Here

These are some of the questions you should ask yourself when comparing home loans. Oftentimes the best home loan for you will depend on your specific financial needs and desires.

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Marc Terrano

A passionate publisher who loves to tell a story. Learning and teaching personal finance is his main lot at finder.com.au. Talk to him to find out more about home loans.

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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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3 Responses to How To Compare Home Loans From Different Banks

  1. Default Gravatar
    Nick | July 9, 2015

    Hi i have 2 home loans approved this week from CBA and BOM. CBA has 3 year economiser rate of 4.39% and BOM has 4.19%
    Which loan is better on long term? Pls advice

    • Staff
      Belinda | July 10, 2015

      Hi Nick,

      Thanks for your enquiry.

      Please note that finder.com.au is an online comparison and general information service, and we can’t recommend specific products or provide personalised advice.

      Here, you can learn more about some features to consider when selecting a home loan.

      Your best course of action would be to speak with a mortgage broker or financial planner to find out which loan would best suit your needs.

      Thanks,
      Belinda

    • Staff
      Jodie | July 10, 2015

      Hi Nick,

      Thank you for contacting us.

      You have come through to finder.com.au, we a financial comparison website and are not qualified to offer you advice specific to your needs, it would be best to review the aspects of each loan, read the page above to get an idea of the aspects to pay attention to, and see which would suit your personal circumstances better.

      If you are still not sure you can speak to a mortgage broker who can take into account your specific needs and offer you advice on which product may be best for you.

      Regards
      Jodie

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