Don't settle for any old loan. Learn how to find the best home loan for you.
Finding the perfect mortgage 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.
HSBC Home Loan Offer
The HSBC Home Value Loan is a low rate with no monthly fees. Enjoy premium service with a dedicated HSBC Relationship Manager.
- Interest rate of 3.59% p.a.
- Comparison rate of 3.60% p.a.
- Application fee of $0
- Maximum LVR: 90%
- Minimum borrowing: $50,000
- Max borrowing: $7,500,000
Compare Our Best Home Loan Rates*
Rates last updated February 25th, 2018.
- Bank of Melbourne Basic Home Loan - Promotional Rate (Owner Occupiers, P&I)
Interest rate decreases by 0.02%
October 23rd, 2017
- loans.com.au Essentials - Variable (Owner Occupier, P&I)
Interest rate now 3.52%
February 12th, 2018
- St.George - Residential Investment Principal & Interest 2 year fixed loan (with Advantage Package Special Offer)
Interest rate is now 3.89%
February 20th, 2018
Aussie Home Loans is both a lender and a mortgage broker, and offers a range of services.
- FREE Suburb and Property Report with every appointment.
- Access 3,000+ loans from over 20 lenders.
- Get expert help with your loan application, including paperwork and eligibility.
- Over 1000 brokers who are able to help you in your local area.
The Adviser’s number 1 placed mortgage broker 5 years running (2013-2017)
* 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.
Some of the best* home loans
While there is no best home loan, here is a range of products to compare
- HSBC Home Value Loan - Resident Owner Occupier only, P&I - 3.6% p.a. comparison rate
- NAB Choice Package Home Loan - 2 Year Fixed (Owner Occupier P&I) First Home Buyer Special - 4.86% p.a. comparison rate
- loans.com.au Essentials - Variable (Owner Occupier, P&I) - 3.54% p.a. comparison rate
What to look for in a home loan
- Competitive interest rates
- Low fees
- Flexibility & features
Competitive interest rates
The higher the interest rate, the more you end up paying. While it isn't the only factor to consider, many borrowers consider a competitive interest rate above else when judging the "best" loans. You also need to know about how different types of interest rates work.
|Standard Variable Rate|
|Ongoing Discount Rate|
The type of interest rate that's best for you will depend on your circumstances. Fixed interest rates offer more stability while variable rate loans can get cheaper if interest rates go down.
Home loans can take decades to pay off. This means costly ongoing fees can add up to many thousands of dollars over the life of a loan. Different fees to watch out for include:
- Application fees (these are one-off fees)
- Valuation fees
- Discharge fees
- Settlement fees
- Lender's legal fees
- Redraw fees
Flexibility and features
Home loans with added features can offer borrowers more flexibility in how they manage their loan, make their payments or use their credit. Some of the flexible options available to borrowers are:
- Additional or extra repayments. Put extra amounts towards your loan and pay it off faster.
- Redraw facility. Access extra repayments you made on your loan whenever you need the money.
- Offset accounts. A transaction account which reduces the interest you pay when funds are deposited into it.
- Portability. Keep your home loan when moving to a new property, saving on entry and exit fees.
- Family guarantee. Get a home with your family's assistance even without an adequate deposit.
- Sign-up bonuses. Get a helping hand from your lender with a cash bonus or fee waiver on your home loan.
- Professional package. Get a rate discount in exchange for bringing your other banking products over to your lender.
- Split facility. Split your loan into fixed and variable portions to get the benefits of both.
What's the best home loan for me?
The “best” home loan is a very individual proposition. To decide what the best home loan for you might be, you need to consider your individual circumstances. Some things to take into account might be:
- What are your current financial needs? What sort of repayment options can you afford right now? Your interest rate and your loan term will impact your monthly repayments.
- What are your future financial needs? A home loan lasts a long time. To find a home loan that grows with you, you’ll need to think about your needs and wants for now and the future. For young professionals for example, a no-frills home loan with a fixed interest rate could help you get used to repayments. When the fixed rate period ends, you have the ability to refinance to a more flexible home loan as you become a parent or have bigger, financial goals.
- What's the purpose of the loan? Whether you are buying a property as an investment or as your own home can affect grants you are eligible for, and how you manage your repayments and interest at tax time. There can also be some small differences between home loans and residential investment loans so make sure you are comparing the right type of loan where your needs are being met.
What to look for in a home loan, according to Australian homeowners
In a finder survey conducted in November 2017, 1,286 Australian homeowners were asked the following question: "Aside from the interest rate, which features are most important when selecting a home loan?" The results were as follows:
|Answer||Percentage of respondents|
|Ability to make extra repayments||28%|
According to these responses, Australian homeowners are more concerned about fees (and avoiding them) than anything else. But these responses, while interesting, matter less than your own specific needs. And this can depend on your particular situation.
The most appropriate home loan for someone in their 50s who already owns property may look very different to a couple in their 20s buying their first home. Self-employed borrowers will also have different needs than people who are looking to buy a home with a very small deposit.
We've outlined some common scenarios for different mortgage borrowers below, with links to helpful guides and specialised home loan products.
More options for borrowers
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.
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.