For most people, the best home loan typically has a low interest rate, no fees and an offset account.
But what makes the best home loan for one person won't necessarily make the best home loan for another.
Because of that, our experts have chosen top picks for different home loans that might be the best for different people, depending on what they want from their loan.
There are 3 things every borrower needs to look at when hunting for the perfect home loan:
The interest rate determines your borrowing costs. The lower the rate, the less interest you pay each month.
Let's say your loan amount is $500,000 with a 30-year loan term. Here's how different rates change the repayments.
| Interest rate | Monthly repayment |
|---|---|
| 5.75% | $2,918 |
| 6.00% | $2,998 |
| 6.25% | $3,079 |
| 6.50% | $3,161 |
| 6.75% | $3,243 |
| 7.00% | $3,327 |
| 7.25% | $3,411 |
The best home loan will always have a low interest rate compared to most loans on the market.
While a low rate is more important, don't forget to add up the cost of fees. Ongoing annual fees can cost hundreds of dollars and one-off application or settlement fees can costs hundreds more.
Take a look at our full guide on home loan fees so you know what to watch out for.
Home loans with added features can offer you more flexibility in how you repay and manage your loan:
43% of Australians think an offset account is one of the most important features when considering a home loan, according to a Finder survey.
"For me, the best home loan needs to have an offset account along with a low interest rate. My home loan offset account is now my primary savings account. Instead of earning interest, I offset the interest my lender charges every day. This works for me because the rate on my home loan is higher than a savings account, and the debt is large. I'm saving thousands of dollars and will pay the loan off much faster this way."
The ideal home loan is one with the lowest interest rate - but that doesn't mean it's the best one for you!
The best home loan is unique to your own circumstances. It's about finding one that fits your life, your goals and your budget.
For example, the best home loan for a first home buyer won't be the best home loan for a seasoned investor.
And while many borrowers in today's market are choosing a variable interest rate, that's not necessarily the best for everyone.
Whatever the situation, the best home loan is the one that saves you money and gives you the tools to manage your mortgage on your terms.
Let's take a look at some scenarios:
A property investor with a mortgage on the family homePlenty of property investors haven't paid their own home loans off yet. For this type of borrower, one approach could be as follows:
This is just one approach for a property investor to take. In a complex scenario like this, getting personal advice from a mortgage broker and an accountant is a really good idea.
A first home buyer struggling to save a 20% depositMany aspiring first time property buyers find saving for their deposit the most difficult hurdle. In this case, the best home loan is not necessarily one with the lowest interest rate.
The best home loan may be one that allows for a higher loan-to-value ratio. This allows them to borrow with a lower deposit, usually as low as 5%. These loans typically come with slightly higher interest rates.
First home buyers may also want to take advantage of government first home buyer schemes. Not all lenders take part in these schemes so the best home loan here would be from a lender that does.
A homebuyer with extra money in savingsWhether you're buying your first home or refinancing your existing loan, ideally you're looking for a low interest rate. But sometimes the best home loan is a slightly higher interest rate in exchange for better features.
Particularly if that feature is an offset account, which could actually save you more money than if you'd gone for a lower rate.
If you have money sitting in your savings account, and you don't want to invest it, a loan with a 100% offset account might be the best one for you.
Any money in your offset account is taken off your remaining loan value, reducing the amount of interest you'll pay. The more money you save in there, the more money you'll save on interest over the life of the loan.
You've signed a contract to buy and you're running out of timeIf 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. Or you might try an online lender with a fast approval process.
You're a young couple wanting to start a familyWhether you're a first home buyer or you're refinancing, you'll need to decide between a variable interest rate or a fixed interest rate. While for a lot of people choosing between the 2 might be more about the market, the best option for you may depend on other reasons.
Perhaps you're a couple planning to start a family in the next couple of years. A fixed rate might give you the confidence that your repayments aren't going to change as you navigate parental leave and the extra costs of a family. As such, this may give you the peace of mind that that makes it the best loan for you over a variable loan.
What are the best home loans in 2026?Every year Finder runs awards to find the best home loans from the previous 12 months. These are the loans which came out on top in the 2026 Finder Home Loan Awards. Like the loans with high Finder Scores, these loans will have lower costs than other loans in their category.
Check out the full awards page to learn more about how we chose the winners.
Want to know what people actually feel about their home loan provider? Each year, thousands of Australians rate brands they've used as part of Finder's Customer Satisfaction Awards program. Aussies rate brands within a product category across a range of metrics, including 'value for money' and 'customer service'. Here are the results:
| Lender | Overall satisfaction | Trustworthy/reliable |
|---|---|---|
 | 4.13/5 | 92% |
 | 4.09/5 | 89% |
 | 4.00/5 | 84% |
 | 3.96/5 | 82% |
 | 3.93/5 | 85% |
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.
Every month, our home loan experts take a look at the top scoring products in our Finder Score data to find the best home loan picks from our partner lenders.
Our home loan picks showcase the best loans for:
The Finder Score crunches 7,000 home loans across 120+ lenders. It takes into account the product's interest rate, fees and features, as well as the type of loan eg investor, variable, fixed rate - this gives you a simple score out of 10.
To provide a Score, we compare like-for-like loans. So if you're trying to find the best home loan for you, you can see how each product stacks up against other home loans with the same borrower type, rate type and repayment type. In the case of fixed loans, we also split them up into short term and long term fixed rates.
Read our full Finder Score methodology
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Hi was wondering if you can borrow money for a house and get extra to pay off your outstanding debts. I would be eligable for first home owners grant but have no deposit as pay 550 per week rent, thanks
Hi Derek,
Thanks for the question.
Home loans can be used to consolidate your debts through refinancing, please see our guide to refinancing your home loan to consolidate debt. To get any further advice on this type of borrowing you can also contact a lender or mortgage broker who can help your specific needs.
Regards,
Jodie
Anyone able to offer a mortgage on an over 50’s townhouse? 50% deposit, bricks and mortar.
Hi Garry,
Thanks for the question.
I would recommend contacting a mortgage broker, as they will be able to steer you in the right direction and help you to apply with lenders who are more likely to approve your application.
I hope this helps,
Marc
Is the interest rate on a 15 year loan the same as a 30 year loan?
Hi Matthew,
Thanks for your question.
Generally, the loan itself stays the same. Assuming that you stay with the loan the entire time. However, the rates are subject to change during the term of your loan.
If you opt for a variable rate home loan, it is likely that your interest rate will change according to the RBA cash rate decisions. Even with a fixed rate home loan, it would need to revert to another interest rate at the end of the fixed term.
Cheers,
Shirley
Hi, has nab passed on the rate cute from feb yet?
Hi Jeff,
Thanks for your question.
NAB announced that they would be passing on the rate cut on February 20, 2015. You may refer to our guide on the RBA cash rate to know about expert’s forecast on cash rate and how it affects your financial products.
Cheers,
Shirley
Are there any lenders who allow seniors to borrow? I have more than enough to put down and to make the payments.
Hi A,
Thanks for your question.
Typically, a line of credit home loan is designed for seniors.
If you find that none of these loans are suitable for your situation, there is always the option of speaking to a home loan broker. They can help you understand your financial position and they can leverage their panel of networks to find a lender that is more inclined to review your application.
Cheers,
Shirley
My quester was related to buying a house for myself. To have an equity line of credit ther has to be a house you are already in to borrow.
Hi A,
If that is the case, I recommend getting in touch with a licensed mortgage broker. A broker can help you understand your financial position and they can leverage their panel of networks to find a lender that’s more inclined to review your application.
Thanks,
Shirley