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Home loan comparison

Home loan rates continue to rise, but you can still find rates as low as 2.57%. A simple comparison could save you thousands. Doing it yourself means you can cut out the broker - and it only takes 10 minutes.

We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!

Compare home loan rates for July 2022

$
years
Name Product Comparison Rate Fees Monthly Payment

Ubank Neat Variable Home Loan
Principal & interestOwner-occupier40% min. deposit

Principal & interestOwner-occupier40% min. deposit
Interest Rate
2.64%
2.65%
  • Application: $0
  • Ongoing: $0 p.a.
$605
Get flexibility and the option to make unlimited extra repayments with this variable rate loan.

Unloan Variable Home Loan
Principal & interestOwner-occupier20% min. deposit Refinancers only

Principal & interestOwner-occupier20% min. deposit Refinancers only
Interest Rate
2.64%
2.56%
  • Application: $0
  • Ongoing: $0 p.a.
$605
A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.

Nano Variable Home Loans
Principal & interestOwner-occupier20% min. deposit

Principal & interestOwner-occupier20% min. deposit
Interest Rate
2.74%
2.74%
  • Application: $0
  • Ongoing: $0 p.a.
$613
Competitive rate with zero fees, fast approval and a 100% free offset account. Available for refinancers and existing buyers purchasing their next home. 20% deposit required.

loans.com.au Smart Booster Discount Variable Home Loan
Principal & interestOwner-occupier20% min. deposit

Principal & interestOwner-occupier20% min. deposit
Interest Rate
2.60%
2.96%
  • Application: $0
  • Ongoing: $0 p.a.
$602
Get a low discounted variable rate loan. Requires a 20% deposit. Get your loan processed fast and settle within 30 days.

Macquarie Bank Basic Home Loan
Principal & interestOwner-occupier40% min. deposit

Principal & interestOwner-occupier40% min. deposit
Interest Rate
2.84%
2.84%
  • Application: $0
  • Ongoing: $0 p.a.
$621
This flexible variable rate loan requires a 40% deposit or equity. Get fast online approval and $0 application fee and $0 ongoing fees.

IMB Budget Home Loan
Principal & interestOwner-occupier20% min. deposit

Principal & interestOwner-occupier20% min. deposit
Interest Rate
2.84%
2.85%
  • Application: $449
  • Ongoing: $0 p.a.
$621
A low-rate, no-frills home loan for borrowers with a good deposit and unrestricted repayments. $0 application fee for eligible borrowers with principal-and-interest repayments and deposits of at least 20%.

Unloan Variable Home Loan
Principal & interestInvestment20% min. deposit Refinancers only

Principal & interestInvestment20% min. deposit Refinancers only
Interest Rate
2.94%
2.86%
  • Application: $0
  • Ongoing: $0 p.a.
$629
Investors can get a low variable rate. Apply online and get fast approval. Backed by the Commonwealth Bank.

Ubank Neat Variable Home Loan
Principal & interestOwner-occupier20% min. deposit

Principal & interestOwner-occupier20% min. deposit
Interest Rate
2.84%
2.86%
  • Application: $0
  • Ongoing: $0 p.a.
$621
A competitive variable rate loan that comes with a 100% offset account. 20% deposit required.

Yard Variable Home Loan
Principal & interestOwner-occupier40% min. deposit

Principal & interestOwner-occupier40% min. deposit
Interest Rate
2.64%
2.66%
  • Application: $0
  • Ongoing: $0 p.a.
$605
Get a low variable rate loan with this online lender. 100% offset account. Requires a 40% deposit.

Speak to a broker about your options

Consultant

Greater Bank Great Rate Discount Variable with Family Pledge Home Loan
Principal & interestOwner-occupier-10% min. deposit

Principal & interestOwner-occupier-10% min. deposit
Interest Rate
2.79%
2.80%
  • Application: $0
  • Ongoing: $0 p.a.
$617
Pay no deposit or LMI and get a discounted rate with this family pledge loan. Requires a family member to act as guarantor. NSW, QLD and ACT only.

OneTwo Variable Rate Home Loan
Principal & interestOwner-occupier20% min. deposit Refinancers only

Principal & interestOwner-occupier20% min. deposit Refinancers only
Interest Rate
2.59%
2.49%
  • Application: $0
  • Ongoing: $0 per month
$601
$5,000 refinance cashback.
A variable rate loan for owner-occupier refinancers living in NSW, VIC, QLD or SA metro and inner regional areas. Get an extra 0.15% off your rate as you repay the loan and get up to $2,500 in bonus payments. Terms and conditions apply.

HSBC Home Value Loan
Principal & interestOwner-occupier30% min. deposit

Principal & interestOwner-occupier30% min. deposit
Interest Rate
2.77%
2.78%
  • Application: $0
  • Ongoing: $0 p.a.
$616
$3,288 refinance cashback offer
This competitive variable rate loan is available for borrowers with 30% deposits. Eligible refinancers borrowing $250,000 or more can get a $3,288 cashback. Terms and conditions apply.

Athena Variable Home Loan
Principal & interestOwner-occupier40% min. deposit

Principal & interestOwner-occupier40% min. deposit
Interest Rate
2.64%
2.64%
  • Application: $0
  • Ongoing: $0 p.a.
$605
Owner occupiers with 40% deposits or equity can get this competitive variable rate loan. No upfront or ongoing fees.

Tic:Toc Live in Loan Variable Rate
Principal & interestOwner-occupier10% min. deposit

Principal & interestOwner-occupier10% min. deposit
Interest Rate
2.59%
2.60%
  • Application: $0
  • Ongoing: $0 p.a.
$601
A competitive variable rate product with no application or valuation fees offered by a 100% online lender.

homeloans.com.au Low Rate Home Loan with Offset
Principal & interestOwner-occupier40% min. deposit

Principal & interestOwner-occupier40% min. deposit
Interest Rate
2.64%
2.64%
  • Application: $0
  • Ongoing: $0 p.a.
$605
A competitive rate with no application or ongoing fees. This loan is not available for construction.

G&C Mutual Bank Momentum Home Loan
Principal & interestOwner-occupier40% min. deposit

Principal & interestOwner-occupier40% min. deposit
Interest Rate
2.74%
2.76%
  • Application: $0
  • Ongoing: $0 p.a.
$613
A variable rate loan for owner-occupiers looking to refinance. This loan has low fees and a 100% offset account.

Well Money Balanced Variable
Principal & interestOwner-occupier20% min. deposit

Principal & interestOwner-occupier20% min. deposit
Interest Rate
2.60%
2.63%
  • Application: $250
  • Ongoing: $0 p.a.
$602
A very low interest rate for home buyers with 20% deposits saved. Add an offset account for a small fee.

Newcastle Permanent Building Society Real Deal Home Loan
Principal & interestOwner-occupier20% min. deposit

Principal & interestOwner-occupier20% min. deposit
Interest Rate
2.87%
2.91%
  • Application: $595
  • Ongoing: $0 p.a.
$624
Get up to $3,000 refinance cashback when your LVR is 90% or lower ($2,000 cashback for loan amounts of $250K+ and above, $3,000 for $500K+). Other conditions apply.This variable rate loan requires a 20% deposit and has an offset account.

Nano Variable Home Loans
Principal & interestInvestment20% min. deposit

Principal & interestInvestment20% min. deposit
Interest Rate
3.04%
3.04%
  • Application: $0
  • Ongoing: $0 p.a.
$637
Investors can get this no-fee variable rate loan. You will need a 20% deposit. Fast online approval. Available for refinancers and existing buyers purchasing their next property.

Yard Variable Home Loan
Principal & interestOwner-occupier20% min. deposit

Principal & interestOwner-occupier20% min. deposit
Interest Rate
2.74%
2.76%
  • Application: $0
  • Ongoing: $0 p.a.
$613
A competitive variable rate loan for home buyers with an optional offset account ($120 annual fee). 20% deposit required.
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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.

A graph showing the deposit and loan amount on an example home loan.

Interest rate and repayment types

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

Variable ratesFixed 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).

Repayment types

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?

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. It's as simple as that.

Here's the difference in repayments between a 3.50% and a 3.00% interest rate (on otherwise identical loans with 20% deposits and principal-and-interest repayments).

Interest rate3.50%3.00%
Loan amount$400,000$400,000
Loan term30 years30 years
Monthly repayments$1,796$1,686
Savings (monthly)N/A$110 cheaper
Savings (yearly)N/A$1,320 cheaper
Savings (life of loan)N/A$39,600 cheaper

Over 30 years, that little 0.50% difference in the interest rate could save a borrower an enormous $39,600 in interest charges.

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

Property market update: July 2022

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Finder's home loans editor Richard Whitten has covered mortgages and the property market since 2017. Every month he analyses price and rate data to provide a snapshot of the Australian property market.

There's no relief for borrowers this month. The Reserve Bank lifted the cash rate a third time, again by 50 whole percentage points. This means most borrowers with variable rate home loans will see their mortgage rates rise by the same amount.

These successive increases have meant borrowers' home loans are now 125 percentage points higher than they were just 3 months ago. This means if your home loan rate was 1.80% at the start of the year, it would now be 3.15%.

This is making home loan repayments very expensive for Australian borrowers. And it's also driving property prices down.

Property prices are continuing to slide, which is unsurprising as borrowing costs rise. Prices in Sydney are down 2.8% in the last quarter, and down 1.1% in Melbourne. Nationally, prices fell just 0.2% for the quarter.

There's not much good news for renters, however, with Corelogic stating this month that rents have "hit record highs."

How do I compare mortgage fees and features?

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

dollar iconCompare 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.

Gift card iconConsider 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 best of both a fixed and variable rate.

Reward point iconLook 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.

A note about loan-to-value ratio (LVR)

The loan-to-value ratio (LVR) is another way of defining the minimum deposit you have to save. Most loans have a maximum LVR of 80%, meaning you need a 20% deposit. Many loans also have a maximum insured LVR of up to 95%. This means that you can get the loan with a smaller deposit, but you will need to pay lenders mortgage insurance (LMI) if your deposit is under 20%.

Home loan comparison tips from the experts

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

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Susan Mitchell, CEO - Broker at REA Group, and former CEO of Mortgage Choice

Common mistakes first home buyers make

"There is a common misconception that going straight to the lender you bank with is going to get you the best outcome when in reality, borrowers are doing themselves a disservice by not comparing options from a range of lenders to find the best deal for their goals and needs.

"Not getting home loan pre-approval is another mistake many borrowers make. This is especially the case if you are applying for your first home loan. A home loan pre-approval is useful when buying your first home as it helps you understand what property you can afford to buy before you start shopping around."

Prepare your finances before approaching a lender or broker

"Lenders will assess how 'risky' you are to lend money to, so it's important that you show them that you have good money habits. Don't spend more than you earn, cut back on discretionary spending 3-6 months before you apply for a home loan and make sure you've established a savings history so you can demonstrate that you are responsible with your money and can make your home loan repayments each month."

Photograph of mortgage broker Josh Bartlett.Josh Bartlett, mortgage broker and managing director, Mortgage Advice Bureau.

Know your money personality

"It comes down to money personality. If a couple have very different money personalities, say a husband and wife where one is very good with their money and the other likes to spend, you could structure the loan so they're both happy with how that money is going to be used.

"I'd suggest a loan with a multi offset account, allowing the couple to have their own accounts so they can control their spending in ways they feel comfortable with. As long as everything's going fine, they'll still be married in the next 5 years."

Fixed or variable

"Again, it comes down to the individual. Are you okay if your rate falls up or down? Right now, are rates going to go up? Probably not, but we don't have a crystal ball. Would you feel comfortable with a fixed rate of 1.89% for 2 years? Would you feel comfortable with that certainty?

"You only ever fix it if it makes you feel more comfortable. It's not about beating the banks."

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.

More home loan comparison questions answered

More helpful home loan guides

The latest loans and property news

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Your home loan rate is going to get even more expensive, and the worst is yet to come.

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Rates rise and property prices fall, but you’re not as screwed as you think

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The products compared on this page are chosen from a range of offers available to us and are not representative of all the products available in the market. There is no perfect order or perfect ranking system for the products we list on our website, so we provide you with the functionality to self-select, re-order and compare products. The initial display order is influenced by a range of factors including conversion rates, product costs and commercial arrangements, so please don't interpret the listing order as an endorsement or recommendation from us. We're happy to provide you with the tools you need to make better decisions, but we'd like you to make your own decisions and compare and assess products based on your own preferences, circumstances and needs.


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8 Responses

  1. Default Gravatar
    ChrisApril 21, 2022

    Useless tool – no way to select weekly payments.

    • Avatarfinder Customer Care
      SarahMay 2, 2022Staff

      Hi Chris,

      We appreciate your feedback.

      Our tables contain quite a bit of information in them. In the interests of brevity, we currently allow you to compare home loans by monthly payments. If you’d like to know the estimated weekly payments, you can divide these estimates by 4.3. For instance, if the monthly estimate was $3,000, once you divide it by 4.3, the weekly amount would be $697.67.

      Hope this helps, and thanks again for the feedback – we’ll explore whether this functionality can be added.

      Many thanks
      Sarah

  2. Default Gravatar
    MichaelDecember 18, 2021

    I’d like speak to someone about refinancing a please?

    • Avatarfinder Customer Care
      RichardDecember 22, 2021Staff

      Hi Michael,

      If you already have a preferred lender, you can visit their website to submit an application and/or request to speak with their home finance representative.

      Alternatively, you can speak with a professional mortgage broker to get personalised advice. You can call one of the mortgage brokers found on our page to schedule an appointment or search for a mortgage broker in your area on Google.

      I hope this helps!
      Richard

  3. Default Gravatar
    JDMAugust 12, 2019

    I am an Australian citizen returning to Australia after several years abroad. I will be entering into employment with the Australian branch of my existing employer with a new employment contract (but without a probation period). Can you advise limits to home loan borrowing upon arrival. e.g. is their a qualifying period for work/residence in Australia for lenders?

    • Default Gravatar
      NikkiAugust 13, 2019

      Hi JDM,

      Thanks for your question!

      All Australian citizens are eligible to apply for a home loan. This is one of the basic requirements. Others include age, income, and other unique requirements of the lender.

      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.

      A mortgage broker is the best person to reach out to see your options for home loans. They can give you a multitude of options according to your situation. In the meantime, to give you an estimate of your monthly repayments, you can use our home loan eligibility calculator.

      Hope this helped. Feel free to reach back out for further assistance.

      Cheers,
      Nikki

  4. Default Gravatar