From razor-sharp interest rates to $0 application fees and flexible features, 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.
loans.com.au Essential offer
loans.com.au Essentials - Variable (Owner Occupier, P&I)
variable rate
comparison rate
loans.com.au Essential offer
With the loans.com.au Essentials - Variable (Owner Occupier, P&I).A simple mortgage with a competitive interest rate and no application or monthly fees. Borrow up to $2 million from a convenient online lender.
- Interest rate of 3.64% p.a.
- Comparison rate of 3.66% p.a.
- Application fee of $0
- Maximum LVR: 80%
- Minimum borrowing: $50,000
- Max borrowing: $2,000,000
UBank UHomeLoan Variable Rate - Discounted Rate
UBank UHomeLoan Variable Rate - Discount offer for Owner Occupiers, P&I Borrowing over $200,000
variable rate
comparison rate
UBank UHomeLoan Variable Rate - Discounted Rate
With the UBank UHomeLoan Variable Rate - Discounted Rate — borrowing between $200,000 and less than $700,000 (Owner Occupier, P&I). Enjoy a low interest rate and no ongoing fees. Get $1,000 cash into a USaver account when you take out a loan of $200,000 or more (new or refinance). Terms and conditions apply.
- Interest rate of 3.59% p.a.
- Comparison rate of 3.59% p.a.
- Application fee of $0
- Maximum LVR: 80%
- Minimum borrowing: $200,000
Your guide to finding the right mortgage
How do I compare mortgages to get the best deal?
There are three things every borrower needs to look at when hunting for the perfect home loan: rates, fees and features. The best home loans usually have:
- The lowest interest rates. A lower interest rate means lower repayments. Shaving just a few points off your interest rate can unlock enormous savings over the life of a 30-year mortgage. You can easily sort loans by lowest rate in the table above.
- Limited fees. Fees are also something you need to check when comparing. A home loan that hits you with multiple fees is probably going to cost you more than you realise over time. Check a loan's comparison rate to get a better idea of the added cost of fees.
- 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.
More guides to finding the right loan for you
What's the best home loan for me?
Once you've understood the basics you need to look more closely at your own specific needs. To find the best home loan for you, consider these questions:
- What is your current financial situation? Take a hard look at your savings, income and expenses to work out how much you can afford to borrow. Be realistic, calculate your monthly repayments and factor in future rate rises to make sure you don't get stuck with repayments you can't afford.
- What is your property strategy? The best mortgage is one that matches your buying intentions. If you're a young first home buyer with limited funds you're looking at a very different mortgage product compared to a middle-aged investor buying their second or third property.
- What are your future financial needs? Your needs change over time. You might want a basic, no-frills loan now and one with more features later on as your income increases. A flexible home loan might serve you well for years into the future, provided the interest rate remains low. But you can always refinance to a better loan later. With this in mind, a loan that has high discharge or switching fees will penalise you for refinancing.
Finding the best mortgages for different borrowers
Here are several scenarios featuring different borrowers. They're all looking for the best loan, but they all need something a little different.
The cash-strapped first home buyers
Sarah and Ted are in their late 20s and currently renting. 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:
- Has a low interest rate. They cannot afford massive repayments.
- Is 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%.
- Has a guarantor option. Alternatively, Sarah's parents may be willing to guarantee a portion of their deposit. So a loan that allows for guarantors is a great option.
The cautious investor
Margaret is currently paying off her home. She wants to buy a unit as an investment. She has $200,000 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:
- Is an investment loan. She cannot purchase an investment property with an owner-occupier loan.
- Has a competitive interest rate. Investment loans have higher interest rates, so she needs to shop around for the best deal.
- Has limited features. As her current loan has an offset account, and paying off this debt is her priority, Margaret doesn't need a full-featured loan.
The ripped-off refinancer
David is paying off a $1 million mortgage. He hadn't looked at his interest rate in a while and was shocked to learn that the rate has jumped well above 4%. His current loan is a basic, no-frills variable loan without many extra features.
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.
The above scenarios are generalised examples only.
Can a mortgage broker help me find the right mortgage product for me?
Yes, they can. While comparing for yourself is easy, finding the right home loan can take a lot of time and energy. Mortgage brokers are home loan professionals who compare 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.
Find a mortgage broker and get your home loan journey started
I have a few more questions about getting a good quality home loan
Compare more home loan options here
*Disclaimer
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. You should consider seeking independent financial advice and consider your own personal financial circumstances when comparing products.
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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 home buyer. In this case, you may want to read this guide: “The state-by-state guide to 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, please click this link.
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.
As we are a comparison website and general information service, I am unable to recommend or suggest a specific option for you, as it would entirely depend on your needs.
You may check a list of home loan options on this page.
To improve your chances of getting approved for a loan, 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 this page. The maximum amount that you can borrow depends on the LVR of the home loan product you are getting.
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 loan repayment calculator.
I hope this helps,
Marc.
What is the “advertised rate”? And “comparison rate”? And what is the difference?
Hi Degsy, the advertised rate is a interest rate charged for a home loan, and it’s decided by your 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 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
Are there any fees if you choose to pay out the Essentials home loan (on Interest only terms) earlier? If so, what are they? Thank you
Hi,
Thank you for contacting finder.com.au, we have followed up directly via email.
Regards
Jodie
what is interest rate for fixed an varible.. and what charges are there?
Hi Raelene,
thanks for the question.
The interest rates for fixed and variable rate home loans is different depending on the product. The table on this shows some of the different rates and fees for some home loans.
I hope this helps,
Marc.