Our top pick for
Refinancers

1.99 | % p.a. |
2.70 | % p.a. |
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!
Want the best home loan rate for you? We've looked at fees, features and interest rates to find some of the most competitive home loan offers on the market right now. Check out our top picks for April or compare rates for yourself.
Our top pick for
Refinancers
1.99 | % p.a. |
2.70 | % p.a. |
Our top pick for
First home buyers
1.98 | % p.a. |
2.79 | % p.a. |
Our top pick for
Investors
2.09 | % p.a. |
2.60 | % p.a. |
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
Straight to your inbox
Switching to a rate under 2% and locking it in for three whole years represents excellent value in the current market. With very limited fees and a 100% offset account, this loan is a good deal.
Fixing your rate for 3 years under 2% is a great start to a home loan. The fact that it's also available with just a 5% deposit makes it a very compelling home loan for first home buyers.
This investment loan from online lender UBank lets investors lock in a competitive rate for three years and pay minimal fees. You will need a 20% deposit. With a low minimum loan amount this loan is also a good choice if you're looking to fund a smaller investment purchase.
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:
To choose our top pick, we evaluate the relevant products by giving each a score based on:
To choose our top pick, we evaluate the relevant products by giving each a score based on:
To choose our top pick, we evaluate the relevant products by giving each a score based on:
Your individual circumstances and financial needs may differ from other borrowers, so always research widely and choose a product that suits your circumstances.
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.
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 the following:
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.
And as David Smith from Aussie says, with low interest rates on offer and a number of other state and federal government incentives available, this could be the ideal time to get into the market.
"First home buyers could be paying less in mortgage repayments than you would in rent in the same suburb, according to Aussie's Buy vs Rent 2020 Report released in early November 2020," Smith says.
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 have the following:
Margaret talks to a mortgage broker who helps her organise the line of credit loan and an investment loan.
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 begin with 1%. His current loan is a basic, no-frills variable loan without many extra features.
David wants to refinance to a loan that has the following features:
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. This makes his repayments a little higher than they would be on a 30-year term, but 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).
There are three things every borrower needs to look at when hunting for the perfect home loan: rates, fees and features.
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). Here's what your monthly repayments look like with differing interest rates:
Interest rate | Monthly repayment |
---|---|
4.00% | $2,387 |
3.75% | $2,315 |
3.50% | $2,245 |
3.25% | $2,176 |
3.00% | $2,108 |
2.75% | $2,041 |
But there's more to a good home loan than the interest rate.
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.
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.
Home loans with added features can offer you more flexibility in how you manage your loan and make repayments:
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.
Compare more home loan options here
Banks know your credit score, so why shouldn't you? The Finder app updates your score automatically each month and lets you know if it changes. Pop in your phone number below to get your download link.
By submitting your phone number, you agree to the Finder privacy policy and terms of use
Richard Whitten is a senior writer at Finder, and has been covering home loans and the property market in Australia for the last 4 years. He has written for Yahoo Finance, Money Magazine and Homely, as well as multiple banks and lenders. Richard has a Certificate IV in Finance and Mortgage Broking, a Bachelor of Education from the University of Sydney and a Graduate Certificate in Communication. He enjoys helping people understand the ins and outs of mortgages so they can make smarter property decisions. Richard trained as a high school teacher but found it easier to manage personal finances than a classroom full of kids. Before joining Finder, he edited textbooks and taught English in South Korea.
Binance and Coinbase are two titans of cryptocurrency – let's see how the two stack up and find out which suits your needs.
First home buyers are getting practical with different tactics to enter the property market, according to new research by Finder, Australia’s most visited comparison website. A new survey has revealed that 1 in 5 (22%) first home buyers plan to renovate immediately after purchasing. Finder shares tips for sticking to your renovation budget.
Aspiring homeowners now need a six-figure house deposit to purchase a property, according to staggering new research by Finder, Australia’s most visited comparison site.
The last time the cash rate held for extended period of 34 months, banks changed their interest rates seven times - five of which were increases.
Credit cards are being used less and experts say Buy Now Pay Later services such as Afterpay and Zip are to blame, according to new research from Finder. In this month's Finder RBA Cash Rate Survey™, 39 experts and economists weighed in on future cash rate moves and other issues related to the state of the Australian economy.
Soaring property prices and stamp duty fees have experts fearing that first home buyers may be soon pushed out of the market.
With frenzied auctions and properties selling fast, first home buyers have to be proactive and resourceful to get on the property ladder.
Imperfect credit? A non-conforming loan might help you become a home owner.
Add big value to your house without a major investment with these top tips.
Everything you need to know about stamp duty in Queensland and how it’s calculated.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
finder.com.au is one of Australia's leading comparison websites. We compare from a wide set of banks, insurers and product issuers. We value our editorial independence and follow editorial guidelines.
finder.com.au has access to track details from the product issuers listed on our sites. Although we provide information on the products offered by a wide range of issuers, we don't cover every available product or service.
Please note that the information published on our site should not be construed as personal advice and does not consider your personal needs and circumstances. While our site will provide you with factual information and general advice to help you make better decisions, it isn't a substitute for professional advice. You should consider whether the products or services featured on our site are appropriate for your needs. If you're unsure about anything, seek professional advice before you apply for any product or commit to any plan.
Products marked as 'Promoted' or 'Advertisement' are prominently displayed either as a result of a commercial advertising arrangement or to highlight a particular product, provider or feature. Finder may receive remuneration from the Provider if you click on the related link, purchase or enquire about the product. Finder's decision to show a 'promoted' product is neither a recommendation that the product is appropriate for you nor an indication that the product is the best in its category. We encourage you to use the tools and information we provide to compare your options.
Where our site links to particular products or displays 'Go to site' buttons, we may receive a commission, referral fee or payment when you click on those buttons or apply for a product. You can learn more about how we make money here.
When products are grouped in a table or list, the order in which they are initially sorted may be influenced by a range of factors including price, fees and discounts; commercial partnerships; product features; and brand popularity. We provide tools so you can sort and filter these lists to highlight features that matter to you.
We try to take an open and transparent approach and provide a broad-based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market.
Some product issuers may provide products or offer services through multiple brands, associated companies or different labelling arrangements. This can make it difficult for consumers to compare alternatives or identify the companies behind the products. However, we aim to provide information to enable consumers to understand these issues.
Providing or obtaining an estimated insurance quote through us does not guarantee you can get the insurance. Acceptance by insurance companies is based on things like occupation, health and lifestyle. By providing you with the ability to apply for a credit card or loan, we are not guaranteeing that your application will be approved. Your application for credit products is subject to the Provider's terms and conditions as well as their application and lending criteria.
Please read our website terms of use and privacy policy for more information about our services and our approach to privacy.
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?
Hi Sue,
Thanks for your comment and I hope you are doing well. To answer your question about rental income being considered for borrowing power, 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.
As a friendly reminder carefully review the terms and conditions and the product disclosure statement of the lender before applying. You may also contact your lender of choice should you have any questions about their loan requirements.
Hope this helps and feel free to reach out to us again for further assistance.
Best,
Nikki
hi,im looking for a low deposit home loan asap
Hi Angeles,
Thank you for reaching out to Finder.
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! If you wish to ask assistance real time, you could chat with us via the chat button on the page.
Cheers,
Reggie
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?
Hi Mark,
Thanks for getting in touch with Finder. I hope all is well with you. :)
It’s nice to know that you’re planning to buy your first house at a very young age. 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.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua
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 ?
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.
Cheers,
Judith
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
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.
Cheers,
Danielle
Looking at Low Doc Loan max borrowing on my property current value around 1.1 million I am self employed what can you offer Pat
Hi Pat,
Thanks for your question.
You may compare low doc home loans on our website to explore your options. The maximum amount that you can borrow depends on the LVR of the home loan product you are getting.
You may also check with a mortgage broker. A mortgage broker is a professional who compares and helps you apply for home loans on your behalf. A good mortgage broker will give you personalised service all the way through to settlement.
Cheers,
Anndy
If I am eligible to borrow 450k home loan for 30 years, what would be minimum repayment per week?
Hi Jamil,
thanks for the question.
You can find out what your loan repayments would be for different loan rates using our repayment calculator.
I hope this helps,
Marc.
What is the “advertised rate”? And “comparison rate”? And what is the difference?
Hi Degsy,
Thanks for your inquiry.
The advertised rate is a interest rate charged for a home loan, and it’s decided by the lender. It’s used to work out what your loan repayments will be.
The comparison rate is the advertised rate including some of the fees of the home loan (The application fee and any ongoing monthly fees for example), and is accurate for the example of a $150,000 loan over 25 years. By law, comparison rates must be included on all home loan advertisements, as it gives you a way to see what the actual cost of a home loan is because of the inclusion of these fees.
You can find out more about it in our home loan comparison rate guide.
I hope this helps,
Marc
Will I be able to borrow with my Income being from Income protection payments
Hi Tony,
Thanks for your enquiry.
Generally, income protection insurance is designed to help you cover expenses, such as mortgage repayments, in the event that you are unable to work due to injury or illness. Please note that your ability to service a mortgage using this benefit will depend on the type of cover that you have, but most policies provide up to 75% of your monthly income.
As lenders have different eligibility criteria to qualify for home loans, it would be best to contact the lender directly to see whether you can borrow using the benefit from your income payments.
Thanks,
Belinda
What is the difference beteen the interest rate and the comparison rate?
Hi Steve,
Thanks for your enquiry.
The interest rate is the percentage of your home loan that you’ll end up paying in addition to the original loan amount.
Whereas the comparison rate is a percentage amount calculated by adding together the interest rate plus any additional fees or charges associated with the loan. The figure is then converted into a percentage to reflect the true cost of the home loan.
If you compare home loans based on the comparison rate, you’ll get a more accurate idea of the true cost of the loan.
I hope this clarifies things for you.
Thanks,
Belinda