Best home loan rates

Every month we analyse 100+ mortgages in our database to select our best home loan rates for refinancers, first home buyers and investors.

Our Top Picks: Best home loans in January 2022

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We've analysed a range of competitive home loans from our partners to choose our three best home loan rates for first home buyers, refinancers and investors this month. These rates combine useful features with low fees and have some of the lowest interest rates you can find.

Compare some of the best home loan rates on the market

Name Product Interest Rate (p.a.) Comp. Rate (p.a.) Fees Monthly Payment

HSBC Home Value Loan P&IHome≥ 10% Deposit

HSBC Home Value Loan
  • App: $0
  • Ongoing: $0 p.a.
$3,288 refinance cashback offer
A competitive value home loan with no ongoing fee. Eligible refinancers borrowing $250,000 or more can get a $3,288 cashback. Terms and conditions apply.

UBank UHomeLoan Fixed P&IHome 1Y Fixed≥ 20% Deposit

UBank UHomeLoan Fixed
  • App: $0
  • Ongoing: $0 p.a.
Fix your mortgage for 1 year with a very competitive rate and no ongoing fees.

Well Home Loans Balanced Variable P&IInvestment≥ 20% Deposit

Well Home Loans Balanced Variable
  • App: $250
  • Ongoing: $0 p.a.
If you're an investor with a 20% deposit saved you can get this low rate mortgage. Not available for construction.

Newcastle Permanent Building Society Fixed Rate Home Loan P&IHome 2Y Fixed≥ 5% Deposit

Newcastle Permanent Building Society Fixed Rate Home Loan
  • App: $0
  • Ongoing: $0 p.a.
$2,000 refinance cashback
Borrow up to 95% LVR of the value of the property you're buying and pay no ongoing fees. $2,000 cashback for eligible refinancers borrowing $250,000 or more with an LVR up to 80%. Terms and conditions apply.

UBank UHomeLoan Fixed IOInvestment 1Y Fixed≥ 20% Deposit

UBank UHomeLoan Fixed
  • App: $0
  • Ongoing: $0 p.a.
Investors can enjoy flexible repayments and an easy application process with this pioneering online lender.

Athena Variable Home Loan P&IInvestment≥ 20% Deposit

Athena Variable Home  Loan
  • App: $0
  • Ongoing: $0 p.a.
A competitive investor variable rate that falls as you build equity.

IMB Fixed Rate Home Loan P&IHome 2Y Fixed≥ 20% Deposit

IMB Fixed Rate Home Loan
  • App: $449
  • Ongoing: $6 per month
A 2 years fixed with the competitive features.

UBank UHomeLoan Variable Rate P&IInvestment≥ 20% Deposit

UBank UHomeLoan Variable Rate
  • App: $0
  • Ongoing: $0 p.a.
Get a discounted, low-fee investor loan from a convenient online lender. 20% deposit required.

Yard Variable Home Loan P&IHome≥ 20% Deposit

Yard Variable Home Loan
  • App: $0
  • Ongoing: $0 p.a.
A very low variable rate loan for home buyers with an optional offset account ($120 annual fee). 20% deposit required.

Bluestone Prime Home Loan P&IHome≥ 30% Deposit

Bluestone Prime Home Loan
  • App: $0
  • Ongoing: $0 p.a.
Bluestone's Prime is a competitive variable rate home loan for borrowers with 30% deposits.

UBank UHomeLoan Fixed P&IHome 3Y Fixed≥ 20% Deposit

UBank UHomeLoan Fixed
  • App: $0
  • Ongoing: $0 p.a.
A competitive fixed rate loan with no ongoing fees. Requires a 20% deposit.

Nano Variable Home Loans P&IHome≥ 25% Deposit Refi Only

Nano Variable Home Loans
  • App: $0
  • Ongoing: $0 p.a.
Competitive rate with zero fees, fast approval and a 100% free offset account. Refinance only, 25% deposit required.

OneTwo Variable Rate Home Loan P&IHome≥ 20% Deposit Refi Only

OneTwo Variable Rate Home Loan
  • App: $0
  • Ongoing: $0 per month
A low variable rate loan for owner-occupier refinancers living in metro NSW/VIC. Get rate discounts as you repay the loan.

IMB Budget Home Loan P&IHome≥ 20% Deposit

IMB Budget Home Loan
  • App: $449
  • Ongoing: $0 p.a.
A low-rate, no-frills home loan for borrowers with a good deposit and unrestricted repayments.

UBank UHomeLoan Fixed IOInvestment 3Y Fixed≥ 20% Deposit

UBank UHomeLoan Fixed
  • App: $0
  • Ongoing: $0 p.a.
Pay no ongoing fees on this investment loan fixed for 3 years.

Athena Variable Home Loan P&IHome≥ 40% Deposit

Athena Variable Home  Loan
  • App: $0
  • Ongoing: $0 p.a.
Owner occupiers with 40% deposits or equity can get this competitive variable rate loan. No upfront or ongoing fees.

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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 Site, 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.

Finder's top home loan rate picks for January 2022

Here's what we like about this month's top picks:

Top pick for first home buyers: HSBC Home Value Loan - Promotional Offer LVR 90% (Owner Occupier, P&I)

With this loan you can get a low variable rate for the first year and buy your home with a 10% deposit.

Top pick for refinancers: UBank UHomeLoan - 1 Year Fixed Rate (Owner Occupier, P&I)

Switch to this low-fee, low rate loan and pay less interest. It does lack an offset account, so keep that in mind if you have savings you want to put in an offset account.

Top pick for investors: Well Home Loans Balanced Variable - LVR 80% (Investor, P&I)

A very competitive variable investor home loan. A good option for investors looking to minimise repayments with an interest-only loan.

How did we choose our top home loans picks?

Finder compares home loans from across the market. Every month, we examine the home loans offered by our commercial partners and select our top picks. Our selections are based on an objective criteria. While the best home loan looks a little different for every borrower, our methodology considers interest rates, fee costs and loan purpose. These are important factors for every borrower.

Keep in mind, however, that our top picks may not always be best for you. Based on your situation, you may find certain loan features to be more or less important. Always compare your options before you apply.

We compared all home loans currently offered by our commercial partners. This is a selection of lenders that includes large banks, credit unions and smaller online lenders. But we do not examine every loan in the market. You may find a loan with a lower rate or more suitable features somewhere else.

Our top picks are divided into three categories based on different borrower's needs:

Your individual circumstances and financial needs may differ from other borrowers, so always research widely and choose a product that suits your circumstances.

What is the best home loan for you?

David Smith, Chief Customer Officer of mortgage broking firm Aussie, says when you're deciding which home loan to get, it pays to keep in mind that every borrower is different.

"It's fair to say it's going to be one of the biggest decisions you'll ever make. It's one of the most complex, too," Smith explains.

"The first consideration you should make when choosing a home loan is to understand how much you can afford. That doesn't just mean the maximum amount you can borrow – it also means the maximum you're prepared to pay each month for your loan repayment."

From there, you can plan a budget with your home loan repayments in mind.

"Don't forget, when you purchase a property, there are a number of other upfront costs to cover, including stamp duty – so make sure you factor those extra costs in too," Smith says.

Here are some examples of typical borrowers. While all borrowers are looking for the best home loan to suit them, they all need something a little different.

The cash-strapped first home buyers

Picture not described Our hypothetical first home buyers Sarah and Ted are in their late 20s and currently renting. They've squirrelled away their money for four years and they've saved up $100,000, but because they live in Sydney, this isn't a very big deposit.

The best home loan for this young couple will ideally:

  • Have a low interest rate. They cannot afford massive repayments.
  • Be a low deposit loan. They probably haven't saved a 20% deposit, so they'll need a loan with a maximum insured LVR of 90% or 95%.
  • Have a guarantor option. Alternatively, Sarah or Tom's parents may be willing to guarantee a portion of their deposit, so a loan that allows for guarantors is a great option.

With these criteria, Sarah and Ted find a low rate loan with a high LVR. They ask their lender if it accepts guarantors, which it does. Sarah's parents guarantee 15%, so they only need a 5% deposit and they can avoid paying lenders mortgage insurance. The loan they choose does come with a hefty application fee, but they decide it's worth paying because everything else about the loan is perfect for them.

Although the idea of saving a big deposit may be intimidating, the First Home Buyers Deposit Scheme means you only need to save a 5% deposit to get your foot on the property ladder.

The cautious investor

Picture not described

Until recently, investors have been accustomed to paying far more than owner-occupiers for their property loans. But that's no longer the case, with very competitive investment loans available, and banks once again vying for investors' business.

"If you're already a homeowner or an investor wanting to refinance or upgrade, housing affordability has never been cheaper than it is today, thanks to these record low interest rates that are expected to stick around for at least another three years," Smith says.

In our hypothetical example, Margaret is currently paying off her home. She wants to buy a unit as an investment. She has $400,000 in equity and will use a line of credit loan to cover her deposit. But she'll need a loan to buy the unit. She is less concerned with fast capital growth and more concerned with long-term income from rent.

The best loan for Margaret will:

  • Be an investment loan. She cannot purchase an investment property with an owner-occupier loan.
  • Have a competitive interest rate. Investment loans have higher interest rates, so she needs to shop around for the best deal.
  • Have limited features. As Margaret doesn't have much left in savings, she isn't able to put money into an offset account, so she doesn't need to pay extra for a full-featured loan that she won't use.

Margaret talks to a mortgage broker who helps her organise the line of credit loan and an investment loan.

The homeowner who is paying too much in interest

Picture not described
Our final hypothetical example, David, is paying off a $1 million mortgage with a 30-year loan term. He has been repaying the loan for 10 years. David hadn't looked at his interest rate in a while and was shocked to learn that the rate is above 3.30% – when he sees advertisements for other banks and lenders that offer extra features and lower rates.

David wants to refinance to a loan that:

  • Has a much lower interest rate. This could save David thousands of dollars a year.
  • Has low fees. David's current mortgage has a hefty discharge fee. He wants to switch to a mortgage that doesn't slug him with more costs.
  • Has an offset account. David has managed to put away a bit of extra money while making repayments. He wants to put this cash into an offset to lower his interest repayments.

David finds a low-fee variable rate home loan that has a 100% offset account. While his previous rate was around 3.30%, his new rate is 2.59%. He's now paying less interest each month.

Importantly, David doesn't refinance to a new 30-year loan term. Because he has been making repayments for 10 years, he refinances to a 20-year term. Because he's not adding any new debt to the loan, his repayments won't go up – in fact, with the interest rate reduction, they should go down. This ensures he will stay on track to be debt-free faster (switching to a new 30-year loan would add 10 years to the loan).

How do I get the best deal on a home loan?

There are three things every borrower needs to look at when hunting for the perfect home loan: rates, fees and features.

The lower the rate, the better

The best home loan will always have a low interest rate. The interest rate determines your borrowing costs, and the lower the rate, the less interest you pay each month. Anyone looking for the best home loan deal needs to start with the rate.

Here's how it works. Let's say your loan amount is $500,000. You choose a variable rate with a 30-year loan term and principal-and-interest repayments (this means you repay the loan amount plus interest at the same time).

The interest rate has a big effect on the monthly loan repayments:

Interest rateMonthly repayment

But there's more to a good home loan than the interest rate.

Avoid big fees

A home loan that hits you with multiple fees is probably going to cost you more than you realise over time. There are one-off, upfront fees such as application or settlement fees. Some home loans charge an ongoing monthly or annual fee.

Most of the time these fees seem small in comparison to your repayments, but they do add up. And because many home loans have minimal fees, it's better to avoid fees if you can.

Check a loan's comparison rate to get a better idea of the added cost of fees.

The right loan type for your strategy

It's important to get the right kind of home loan. If you're a property investor then you need an investment loan. You won't be able to apply for an owner-occupier loan.

You also need to look at your repayment type. Most borrowers go for principal-and-interest loans, where you borrow money and repay it, plus interest. This is the safest way for most borrowers.

But you can also consider an interest-only loan. With this repayment type, you only pay the interest charges at first. But you'll need to repay the full amount later. It costs you less in the short term and more in the long run. It's a popular option for investors, but some homebuyers choose it too.

Mortgage features you need

Home loans with added features can offer you more flexibility in how you manage your loan and make repayments:

  • Offset accounts can help you cut down your interest repayments.
  • Package loans let you bundle your mortgage with other financial products (like transaction accounts and credit cards) for convenience and discounts.
  • Redraw facilities let you take out extra money you've paid into your mortgage to use in emergencies.
  • Loan portability lets you move your home loan from one property to another without refinancing.

Need more help? Talk to a broker

Finding the right home loan can take a lot of time and energy. Mortgage brokers are professionals who compare home loans from a wide panel of lenders. They can find you a product that matches your financial needs and property strategy and also help you with your application.

Talk to a qualified mortgage broker today.

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    114 Responses

      Default Gravatar
      SueMarch 4, 2020

      I have a home loan for my current property around 300k. If i rent out that home rental income enough for pay capital& interest. If i want to buy another property, is it for borrowing power calculation is it total income alone
      Used or bank use only % of my current income?

        Default Gravatar
        NikkiMarch 5, 2020

        Hi Sue,

        If the property has tenants and regular income the lender will probably take it into consideration when looking at borrowing power, but it’s worth checking with a lender before applying with them. Some lenders may only take 80% of your rental income as part of your borrowing power.


      Default Gravatar
      angelesApril 24, 2019

      hi,im looking for a low deposit home loan asap

        Avatarfinder Customer Care
        JohnApril 25, 2019Staff

        Hi Angeles,

        If you are looking for low deposit home loan providers, look at the “Max LVR” portion of the comparison table we are on. The higher the Max LVR, the lower your deposit would be. An example is: For a Max LVR of 80%, you provide 20% deposit on it. Hope this helps!


      Default Gravatar
      MarkJuly 1, 2018

      I am 20 yrs old trying to go for my first house I work full time and I don’t have too much saved up yet in my opinion so where do I get started?

        Avatarfinder Customer Care
        JoshuaJuly 1, 2018Staff

        Hi Mark,

        As a general rule, you need to save at least 10% of the property value. This can give a 5% buffer (for a maximum 95% LVR loan) to pay costs such as stamp duty and LMI onto the principal of the loan.

        Ensure that there is a high likelihood that you’ll qualify for a home loan before you apply. The way the credit system works, each application for credit is recorded against your name. Multiple entries in a short space will more than likely lead to rejection. Other factors that lenders may consider to assess your eligibility are your income, assets, liabilities, employment and credit history.

        Moreover, you mentioned that you are a first-time homebuyer. In this case, you may want to read our guide about the First Home Owners Grant.”

        Finally, if you want to know more about the things you need in a loan when buying your first home.


      Default Gravatar
      HelenNovember 23, 2017

      I am 48. Never had a loan for anything as I believe you don’t get unless you have. I am entitled to the first home owners grant. Currently I’m on a sickness benefit but looking for work down the track. I’ve been looking at rentals but if I can buy my own home rather than pay someone elses off I don’t see why not to go for it. Where do I stand ?

        Avatarfinder Customer Care
        JudithNovember 24, 2017Staff

        Hi Helen,

        Thanks for reaching out to us. I hope all is well with you today.

        At the moment, we do not have a specific list of home loan lenders that accept sickness benefits as your main source of income. Finding a lender may require you to do some research or you may contact a mortgage broker who can take your personal circumstance into account and offer you a range of borrowing options. Once you’ve found a lender who is willing to help, you may proceed with the regular application process. Please note that you will need to provide extra information about your income.

        Before applying, please ensure that you meet the eligibility criteria and requirements of the loan option or lender and make sure to read the details, as well as the relevant Product Disclosure Statements / Terms & Conditions of the loan option before making a decision and consider whether the product or option is right for you.

        I hope this helps.


      Default Gravatar
      trentAugust 27, 2017

      can I obtain a home loan for a farm which is 42 ha which I intend to develop it has a home on it I am looking for 400;000 and I have 170,000

        Default Gravatar
        DanielleAugust 28, 2017

        Hi Trent,

        Thank you for contacting finder. We are a comparison website and general information service, we’re more than happy to offer general advice.

        You are on the right page. You may customize, review, and compare the offers available on the table. Once you have selected one, you may proceed by clicking the green “Enquire Now” button.

        I hope this helps.


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