Don't settle for any old loan. Learn how to find the best home loan for you.
Finding the best home loan for your situation can help you save money and pay off your mortgage faster. This guide will tell you what features to look for in the best home loans and teach you how to determine your home loan needs. Or you can start comparing loans in the table below.
With the loans.com.au Essentials Variable Home Loan enjoy a home loan with no application or ongoing fees as well as a competitive interest rate. Borrow up to 80% of the property's value. For owner occupiers and principal and interest repayments only.
Fill in the form and you’ll be called by a specialist mortgage broker from eChoice to have a discussion about your options.Your eChoice broker will compare hundreds of home loans from more than 30 lenders to help you find the right loan for you. They’ll also help you calculate your borrowing power, and present your options in a free home loan report.eChoice is an award-winning broker with over 18 years of experience, and has helped more than 50,000 Australians to find the right home loan.
* The offers compared on this page are chosen from a range of products finder.com.au has access to track details from and is not representative of all the products available in the market. Products are displayed in no particular order or ranking. The use of terms "Best" and "Top" are not product ratings and are subject to our disclaimer. The star ratings indicated on this page are from real finder.com.au users based on their feedback about the quality of this page. It is not representative of any product’s star ratings and should not be taken as a recommendation of any form of credit. You should consider seeking independent financial advice and consider your personal financial circumstances when comparing products.
How can I get the best home loan as a first home buyer?
It's tough to be a first home buyer in today's market. But don't despair. You just need to research, strategise and save as much as you can. Look at ways to trim your spending in every possible way and try to save as large a deposit as possible. This reduces your repayment costs and opens up options for better loans. A bigger deposit also helps you avoid costly lenders mortgage insurance. Thankfully first home buyers can get a bit of help from the government. Make sure you read up on stamp duty exemptions and first home owners grants you may be eligible for.
I'm a pensioner: what can I do to get the best possible loan?
If you're a pensioner who already owns a home you should look at tapping into the equity in the home with a line of credit loan or a reverse mortgage. It can be harder to get a loan as a low-income pensioner, but many lenders consider various pensions to be a valid source of income. This includes disability pensions and war widow or veterans' pensions.
You can read our full guide to home loans for pensioners here.
Can I get a great home loan if I'm a self-employed borrower?
Self-employed borrowers can have difficulty proving to lenders that they have a stable income. Many lenders require PAYG statements as proof of income and employment. But some lenders will accept alternative documents for income verification.
I can really only save a small deposit but I still want the best loan.
You can still get a good loan with a 5-10% deposit. But you'll probably need to pay for lender's mortgage insurance (LMI). Depending on your circumstances you might be eligible for a no-deposit home loan. But saving a bigger deposit really is the best way to get a better home loan. Why not check out our comprehensive six-part guide to deposit savings below?
If you’ve considered your circumstances and think you know what sort of loan will best suit your needs, it’s time to find a lender that matches your criteria.
What type of home loan do you want?
There are a range of home loans available in Australia and we're quite spoilt for choice. However, too much choice can also be confusing so before you apply, find out more about each loan feature or purpose.
And if you’ve found a lender you think suits your circumstances, it’s important to understand the process you’ll need to follow to apply for your home loan:
Find the best home loan* with help from a mortgage broker
Finding the best home loan can take a lot of time and energy. Why not get a mortgage broker to do the hard work for you? Mortgage brokers are home loan professionals who compare loans from a wide panel of lenders and can save you time and energy.
I have a few more questions about getting the best home loan
How are home loans different to other types of loans?
A home loan is designed to help you finance the purchase of your new or existing home. It is a long term financial commitment, lasting from 25 - 30 years or in some cases longer.
Allows you to own a home. Unlike many other forms of credit, these loans are able to be used to purchase a home, as they have large maximum borrowing amounts and can be secured to property. They also generally have lower interest rates than personal loans or credit cards.
Lenders have loans for most situations. Depending on your income, savings and financial commitments, most lenders can assist you with financing. This includes borrowers with negative listings on their credit files.
You can borrow high amounts compared with other loans. Home loans allow borrowers to buy large sums of money, as property is generally a lot more expensive than cars and boats.
Repayments can be fixed and easily calculated. If you opt for a fixed rate home loan you have the benefit of knowing what your repayments will be for the fixed period. But never fear, even if you have a variable rate you can use our calculator to calculate your repayments.
Home loans can be flexible. You can make additional repayments, access your redraw facility or opt for an offset account with most variable rate loans. The market has become very competitive, so you can expect to find more feature packed fixed rate home loans popping up also.
You can tap into your equity. If you've owned your home for a while and have built equity in it (the amount of your home you actually own versus what the bank owns), you can access this equity with a line of credit loan. How you reinvest the money is up to you, though experts recommend that you invest in assets that generate an income.
What fees are associated with home loans?
There are a number of fees charged on a home loan, including:
Upfront fees. This includes application fees, settlement fees, legal fees and valuation fees paid when opening your home loan.
Ongoing fees. These fees are charged regularly, for example each month or each year, and are generally service fees and account keeping fees.
Exit fees. When leaving your home loan you'll generally need to pay discharge fees, and if you have a fixed rate home loan, you'll need to pay break costs too, which are charged by your lender to recoup the costs of you leaving your loan before the agreed term ends.
The fees that come with a home loan will ultimately be up to the lender, but this doesn't mean that they're non-negotiable. With a bit of negotiating or by opting for a package, you can get some of these fees waived. Click here for our comprehensive guide on home loan fees, from application all the way to the exit.
How do I find a home loan with the lowest interest rate?
We currently compare hundreds of loans so it's easy to find the lowest interest rate in our comparison. In the blue comparison table above, click on 'interest rate (p.a.)' and the table will automatically sort the interest rate in ascending order. You can also do this with the comparison rate if you wish to take into account fees and charges.
I'm awaiting a property settlement, can I still borrow a higher amount for my next property as I'm waiting for the extra funds?
This will require your lender to reassess your application and the decision will be based on that assessment. It will also depend on the LVR of your new or existing loan - if you want to borrow more than the set LVR then you need to opt for bridging finance instead.
Is topping up my home loan or tapping into my equity better?
This question should be answered by your financial advisor, as we are not in a position to be giving financial advice. Tapping into your equity can be done through a line of credit loan, though a top up will require a reassessment from your lender. You need to use your equity wisely and ensure you reinvest the funds rather than spending it all in one go.
I am currently in a strange or irregular situation. Am I still eligible for a home loan?
In most cases you'll still be eligible for a home loan. Speaking to a mortgage specialist can put you in the right direction to finding a lender who is willing to consider your application. No matter how strange or irregular your situation.
Why don't lenders publish their eligibility requirements online, or anywhere?
This is because the eligibility requirement tend to change on a case by case basis. While the main elements are there: steady income and good credit history, the lender needs to assess your individual assets, liabilities and capital to make a proper decision as to whether you can service the loan for the property you wish to buy.
Do I need to pay capital gains tax when I sell my property?
Your main residence (MR) is generally exempt from capital gains tax (CGT) - and you can use your MR to generate income for up to six years before any CGT is payable. For more information, see our comprehensive CGT guide with over 500 questions asked by our users.
Is my principal place of residence included in the assets test for Centrelink benefits?
The value of your real estate, apart from your main residence is included into the asset test when Centrelink or the Department of Human Services assesses your assets.
How long does the home loan application process take?
You could get your home loan approved within a few days, though the proper answer is that it depends. Each loan and application process is different, so it's hard to give a ballpark figure. If you're in a hurry, your lender can usually arrange settlement within a few days when your application has been conditionally approved.
Do you have historical home loan rates anywhere on the site?
How do I find the Bill Swap Bank Rate (BBSW) on a certain date?
You'll need to contact the Australian Financial Markets Association if the BBSW you're looking for dates more than 10 days back. Note that a fee may be involved to retrieve this information.
I've recently divorced, what happens to my home loan?
If you're in the process of divorcing, you will need to sort out how the property is to be divided. It's best to speak to your solicitor or lawyer in this case, as a legal document will need to be written up recording all of this information. Generally stamp duty is not payable upon a divorce, but this is only if the all the paperwork is done on time. See our guide on refinancing your home loan debt after a divorce.
Post-GFC, these types of loans are only possible if you have a guarantor. This is someone, usually family, who is willing offer their property as security for the loan. Compare 95% LVR home loans and lenders that allow guarantors on our page.
Where can I get personal advice about my home loan?
Speaking to a mortgage broker is a great idea if you would like specific advice about your home loan. Brokers work on a commission basis, so they don't get paid until they've helped you settle with your loan. By law, they are required to disclose all commissions to you, so don't be afraid to ask about how they're paid to ensure you're not getting biased advice.
Can I get a home loan in Australia as a non-resident?
If you're an expat, currently hold a 457 Visa or Spouse Visa, you may be eligible for a home loan issued in Australia. Australia's big four banks, Commonwealth Bank, Westpac, NAB and ANZ have migrant banking services that can assist with this. If you're a foreign resident and you intend to invest in Australian property, you'll need to seek Foreign Investment Review Board (FIRB) approval first.
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