Compare home loan interest rates from 5.74%

How do I compare home loan interest rates?

A good home loan comparison starts with a careful look at interest rates. The lower the rate, the lower your repayments will be.

Let's compare 2 otherwise identical home loans with different interest rates.*

In this example, the lower interest rate saves a borrower $244 a month. That works out to $2,928 a year.

*We're using the average owner-occupier home loan size, the average variable rate loan in Finder's database and the lowest rate currently available on Finder.

Check out Finder's lowest monthly mortgage rate tracker

Home loan comparison is hard if you have no clue what a low rate looks like. That's why we analyse all the loans in our database to find the most competitive rates each month.

The graph below shows the market's lowest* fixed and variable rates for home buyers and investors.

*Rates must have LVRs of 80% or higher and exclude unique or unusual loan products that aren't suitable for most borrowers.

Learn more about finding a cheap home loan

Your interest rate update: November 2023

On 07 November the official cash rate was increased to:

4.35%

The lowest owner-occupier loan in Finder’s database is:

5.74%

Assuming the average owner occupier home loan size of $598,867 you would be making monthly repayments of:

$3,454

Rate rise a blow for homeowners

After 12 rate rises across 13 RBA rate decisions, Australian borrowers were used to seeing their mortgage repayments rise. But after a 4 month reprieve and only 7 weeks before Christmas, this month’s rate rise seemed to hurt more than most.

The RBA has retaliated against inflation, which is not slowing as fast as they would like. But 30% of households are already in mortgage stress and another 25 basis points on top of their mortgage is going to put borrowers in a worse situation.

Despite the lowest variable owner occupier rate on Finder being 5.64%*, RBA figures show the average variable home loan rate is at an average of 6.18%.

On the average outstanding home loan amount in Australia, if you switched from that higher rate to Finder’s lowest rate, you could save $207 each month.

*rates correct as of 13 November 2023.

Graham Cooke heads up Finder's insights team, which is responsible for conducting data-driven research. He also regularly appears on TV and radio, taking part in more than 500 interviews to discuss financial news and trends.

How do I compare mortgage fees and features?

Looking beyond the interest rate, you need to compare home loan fees and features too.

Compare the fees

Examples of home loan fees include the following:

• Application fees. This one-off fee can run as high as $600.
• Ongoing fees. Some loans come with a monthly or annual fee, usually worth around $120 a year or $10 a month. Package loans have an annual fee of up to $500.
• Valuation fees. This covers your lender's cost to have your property professionally valued. It can cost several hundred dollars.
• Discharge fees. A discharge fee is only charged when you end a home loan, either by refinancing or paying off the loan.

Consider the features

The following are the most common and useful home loan features:

• Offset account. A 100% offset account is a bank account that is attached to your home loan. The bank account lets you save and spend money like a normal bank account, but any dollar saved in the account offsets your loan amount, meaning you are charged less interest. An offset is not available with every loan, such as fixed rate and basic loans.
• Extra repayments. If your loan allows you to make extra repayments, you can pay it off faster. This will save you in interest charges. These days, most variable rate loans allow extra repayments, although some fixed rate loans don't.
• Redraw facility. A redraw facility is common on home loans that allow extra repayments. A redraw allows you to withdraw extra repayments from your loan and spend them if you need to. Some lenders charge a redraw fee or restrict how much money you can access.
• Split facility. Some loans allow you to split your mortgage into both fixed and variable portions. This lets you create a flexible loan that offers the benefits of both a fixed and variable rate.

Look at a loan's comparison rate

The comparison rate is designed to help borrowers understand the true cost of a loan by adding in fee costs over time. But it's only a hypothetical calculation based on a specific loan amount and term. It's not that useful because every borrower's situation is unique.

You're better off working out how much your loan will cost you every month and factoring in the cost of fees on top of that.

Home loan comparison tips from the experts

We spoke to some industry experts for more inside tips on getting a good home loan.

More home loan comparison questions answered

• What is a home loan?

  A home loan is the money you borrow to buy a property. You save a deposit first, which is usually 5-20% of the property's value and then you borrow the rest. This is your loan amount or your loan principal.

  Your lender charges you interest based on the loan principal amount and your home loan's interest rate. The higher the home loan interest rate, the higher your repayments will be.
  Here's an example of a borrower with a 20% deposit.

  

• What's the difference between fixed and variable rate home loans

  You can choose between a fixed interest rate and a variable rate loan.

  Variable rates	Fixed rates
  Variable rates can change at any time, but it's easier (and fewer fees apply) to switch to a new loan or make extra repayments.	Fixed rates don't change but are often slightly higher and less flexible (harder to exit the loan or make extra repayments).

• What's the difference between principal-and-interest and interest-only repayments?

  Most borrowers choose home loans with principal-and-interest repayments. This means you borrow the money (principal) and pay it back each month, plus interest on top.

  There is another option, which is interest-only repayments. This type of home loan starts out cheaper because you don't pay any principal at the start. You just pay the interest charge on top. But later, you'll have to pay the principal back and you'll end up paying more.

  Learn more: How do home loans work?

• What's the difference between a home loan and a mortgage?

  To the ordinary person looking to buy a property, there's usually no actual difference between the words "mortgage" and "home loan". They are used interchangeably to mean the money you borrow to buy a property.

  However, if you want to get very technical, a home loan refers to the money you borrow. The mortgage is a legal document that ties you and your property to the lender. In the event you cannot repay the home loan, the mortgage acts as the lender's security and gives it the right to sell your home to recover your debt.

• How long does it take to get approved for a home loan?

  Home loan approval times vary from lender to lender and also depend on how complex your borrowing situation is.

  A lender may be understaffed or very busy when you apply, and an approval might take several weeks. Some online lenders have developed faster digital approvals that allow them to process an application in a matter of days. A big bank may take weeks to approve a loan.

  If you have all your loan paperwork, financial information and identity documents organised, the approval process might be faster.

• How can a mortgage broker help?

  If you're finding it too hard or confusing to compare home loans, a mortgage broker can help. Brokers are qualified professionals who compare loans for you. They don't compare every loan on the market, but they have access to a panel of up to 30 lenders – and sometimes more.

• How do I compare lenders?

  There are many lenders in the Australian mortgage market. Most of them are regulated as banks, and all of them must follow the National Credit Code.

  • The Big Four banks. The Big Four are the dominant players across Australian banking. Most customers stick with Commonwealth Bank, NAB, Westpac or ANZ. They all offer banking apps, large customer service teams, extensive branch and ATM coverage, and lots of mortgages to choose from. You won't get the absolute lowest rates with the Big Four, but they are always competitive.
  • Other banks. There's more to mortgages than the biggest players, of course. There are state and regional banks as well as nationwide operators and local arms of international banks like ING and Citibank.
  • Credit unions and non-bank lenders. There is an enormous number of Australian credit unions, non-bank lenders, building societies and other institutions that are member-owned. This means they work for their members and don't pay dividends to shareholders.
  • Digital banks, fintechs, neo-banks and online lenders. There are lenders that do business entirely online (with phone support). Lenders such as loans.com.au, Tic:Toc and UBank are examples of online lenders with competitive rates. Some newer players in the market include neobank or fintech lenders like Athena and 86 400, which use apps and big data to offer customers a convenient online mortgage experience.

• Can I trust a smaller lender?

  Banks, credit unions, building societies and online lenders are supervised by the Australian Prudential Regulation Authority (APRA) as authorised deposit-taking institutions (ADIs).

  Lenders are also subject to the National Credit Code, which is administered by the Australian Securities and Investments Commission (ASIC) under the National Consumer Credit Protection Act (2009).

  Some smaller lenders may not be treated as ADIs. The main drawback here is that if you have money saved with the lender (in a savings account or offset), you might not be covered by the bank guarantee if the lender goes bust.

• Can I get a home loan on maternity leave?

  Although you possibly can get a home loan while on maternity leave, lenders may see you as a riskier borrower because your income is reduced. This means you would not be able to borrow as much as you would on a full income.

  There are a few things you could do to improve your chances of being approved:

  • Get documention from your employer detailing the terms of your maternity leave, such as the dates and your salary upon your return.
  • Save at least a 20% deposit.
  • Set a realistic budget and loan amount.
  • Talk to multiple lenders before applying. Too many rejected applications will look bad on your credit report, so be sure you get the answers before you apply.
  • Consider talking to a mortgage broker.

  If you want to increase an existing home loan, you may be able to do this while on maternity leave. The increase would need to be a reasonable amount with a lender who will accept you and you can prove that you can afford it.

More helpful home loan guides

Home buying
guide

Mortgage
calculators

Refinancing
guide

How to save
a deposit

Check your
credit score

First home
buyers guide

Why you can trust Finder's home loan experts

We're freeYou won't pay any more by taking out a home loan with us. Better still, we regularly run exclusive deals that you won't find on any other site – plus, our tables make it easy to compare loans.

We're expertsWe've researched and rated dozens of home loans as part of our Finder Awards. We provide unique insights and our in-house experts regularly appear on Sunrise, 7News and SBS News.

We're independentUnlike other comparison sites, we're not owned by a third party. That means our opinions are our own and we work with lots of home loan lenders, making it easier for you to find a good deal.

We're here to helpSince 2014, we've helped 150,000+ people find a home loan by explaining the nitty gritty details simply and clearly. We'll never ask for your number or email. We're here to help you make a decision.

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