
≥ 20% Deposit
2.60 | % p.a. |
2.96 | % p.a. |
Scan to download the Finder app on iOS or Android
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!
2.60 | % p.a. |
2.96 | % 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.
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.
"The first consideration you should make when choosing a home loan is to understand how much you can afford," Smith explains. "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 are currently renting. They've squirrelled away their money for 4 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 be one with 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.
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 an investment 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 one with the following:
Margaret talks to a mortgage broker who helps her organise the line of credit loan and an investment loan.
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 3.60% – 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 the following:
David finds a low-fee variable rate home loan that has a 100% offset account. While his previous rate was around 3.60%, his new rate is 2.59%. He's now paying less interest each month.
There are 3 things every borrower needs to look at when hunting for the perfect home loan: rates, fees and features.
The interest rate determines your borrowing costs, and the lower the rate, the less interest you pay each month.
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 best home loan will always have a lower interest rate because it lowers your monthly loan repayments:
Interest rate | Monthly repayment |
---|---|
3.50% | $2,245 |
3.25% | $2,176 |
3.00% | $2,108 |
2.75% | $2,041 |
2.50% | $1,975 |
2.25% | $1,911 |
2.00% | $1,848 |
But there's more to a good home loan than the interest rate.
Look for a loan that doesn't charge many fees. While home loan fees seem small in comparison to your repayments, they do add up.
Home loans with added features can offer you more flexibility in how you repay and manage your loan:
We've explained what the average borrower needs to do to find a great home loan. But every borrower's needs are slightly different. The best home loan for each borrower depends on their short- and long-term plans, and the reason they're buying a property in the first place.
Here are some examples of quite specific borrowers and what they'd need to look at to find the ideal home loan.
Plenty of investors haven't paid their own home loans off yet. While this means having 2 loans at the same time, it opens up some unique opportunities too.
For this type of borrower, the best approach could be as follows:
This is just one approach for a property investor to take. Another is to look for a home loan bundle or pivot loan that lets you combine your 2 loans, with a higher rate on your investment loan and a lower rate on your home loan. This can be effective for tax purposes.
Let's say you have a 20% deposit and you're looking for a home loan. Obviously, the best loan for you has a low interest rate. But let's say you also have a lot of extra money sitting in your bank account earning very little interest.
And let's say you don't have any desire to invest that money. You want to play it safe. In this case, the best home loan really is one with a 100% offset account.
This means you can park your savings in the home loan and still access it whenever you need it. But by saving the money there, you're cutting down the amount of interest your lender charges you.
If settlement day is fast approaching and you haven't got a home loan approved, the best home loan is the one that a lender will approve quickly.
This could mean a few things. You might abandon the hunt for a better deal and just talk to your own bank. But banks can be slow. You might get faster loan approval with an online lender.
And if you're stuck, a mortgage broker will know which lenders can process your application faster. They can be a real lifesaver when you're running out of time.
If you haven't got the time or energy to do it yourself, talk to a broker. Mortgage brokers are professionals who have access to a panel of lenders. They can find you a product that matches your financial needs and also help with your application.
Talk to a qualified mortgage broker today.
Compare more home loan options here
At the moment, the home loan market is incredibly competitive. Lenders big and small are offering very competitive rates. In the past, you could usually find the lowest interest rates by looking at online lenders rather than the Big Four. But now the gap between the various lenders is much smaller.
And it's important to look at loan features too. A lender may have the market's lowest rate, but if the loan doesn't allow extra repayments or doesn't have an offset account (and you want one), then it's not the best loan for you.
And if you've bought a house and are racing to settlement day, the best lender for you is the one who can approve your loan in time.
There are many different home loan rates on the market, with different types of loans having higher or lower rates. To get a good sense of what's a competitive rate in the current market, take a look at our current home loan rates guide.
Until recently, home loan interest rates were at record lows. But they have started to rise as inflation has increased and the Reserve Bank has lifted the official cash rate. It's still possible to get a home loan with a rate under 3%.
But rates are expected to rise further, so 3% may soon be considered a good rate again soon.
Many lenders offer very low interest rates on package home loans, especially fixed rate package loans. There is nothing wrong with a package loan. It just means you can combine the home loan with a bank account (that usually offsets your loan interest, saving you money) and a credit card or other products.
The package usually means you can avoid fees on some of the products. But you pay an annual package fee instead. This can cost a few hundred dollars a year. But you pay it every year of the loan.
To work out if a package loan is right for you, be sure to factor in the cost of the package fee. And decide if you really need the other products in the package. It could be a convenient option to have all your banking and loan products in one place. Or you might be better off finding a low rate loan elsewhere and avoiding the package aspect altogether.
It never hurts to ask for a discount. The worst your lender can do is say no. Some mortgage brokers claim they can get discounts for their clients, but you can always ask your lender yourself. It helps to be in a good financial position before asking for a lower rate, of course.
Richard Whitten is an editor 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.
Sign up for our FREE 8-week course to get on the property ladder.
Get a cash lump sum of $2,000+ for refinancing to a low-rate loan.
Pay less for your home loan with a super-low interest rate.
Save on your investment loan with these hot offers.
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.
Hi
My fixed rate loan finishes on June 3rd.
I’ve been given the option of a variable rate of 2.59%, which apparently is 1.03% less than the advertised rate, for being a valued customer or I can go on a 2 year fixed rate of 3.49%.
Can you give any recommendations?
Regards
Martin
Hi Martin,
Unfortunately, we can’t give any personal financial advice or recommendations. A lower interest rate usually saves you money, but a fixed-rate loan won’t change during the fixed period.
If you need more guidance you could also speak to a mortgage broker.
Regards,
Richard
Inquiry regarding a first home loan for a person 44yrs of age receiving a disability support pension and presently paying a rent of $270 per week.
He is seeking his first home in an area close to Brisbane as possible on the Northern side priced at between $230,000 to $250,000 and has an available cash deposit of $150,000 to $200,000.
Hopefully you can assist with this matter
Regards,
Robert Benson
Hello Robert,
At Finder we don’t lend to customers, we just provide information to our readers. You should approach a lender or mortgage broker to get a home loan.
Kind regards,
Richard
Refinancing have to choose Athena or Aussie with Adelaide bank.
Which one better.
Hi Julian,
We can’t make this choice for you. It depends on your goals and needs. To help you decide which one to choose, you can view our guide on Refinancing Home Loans.
It’s worth seeking professional advice from a mortgage broker to get personalized advice and options.
Don’t forget to check the product terms and conditions, and eligibility requirements to make sure that it would suit your needs.
Regards,
Richard
Hello,
I entered details for a fixed investor loan over 10 years (then changed to 15 years) with 60+ % LVR (later changed to 40% then zero), completed all filter options, only to receive nil results.
Changing filter entries to achive a result also scored No Result.
Thanks ,
Tom.
Hi Tom,
You usually won’t get any results if none of the providers listed match your selected criteria. There are very few fixed rate loans offer a 10-year fixed period.
If you have specific requirements for the loan you’re looking for, reaching out to lenders directly or consulting a mortgage broker to discuss the type of loan that will complement your borrowing needs would be a good idea.
I hope this helps!
Cheers,
Richard
Do any lenders in Australia offer a variable rate home loan with a cap, ie; the rate can fall with the market but it can’t increase above a certain rate? Thanks
Hi Tania,
These are known as capped rate loans, and they’re quite unusual in Australia. We don’t have a specific list of lenders that offer capped rate mortgages, but you can check our list of lenders featured on our Variable Home Loan Rates page. You can contact the lenders on loans you’re interested in, to enquire if they can offer a variable home loan with a cap.
Or, it might be worth seeking assistance from a mortgage broker to get personalised advice.
I hope this helps!
Cheers,
Sarah