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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Learn about minimum deposits and eligibility requirements for rural or hobby farm home loans.
Redraw and offset accounts are handy features to have on your home loan and can save you thousands in interest on your repayments.
Mortgage security or property security is when the bank “secures” your home loan against the property you wish to purchase. Learn why it’s important and how it works.
Aussie Home Loans is both a lender and a mortgage broker. Compare its home loan offers and learn more about this lender.
loans.com.au is one of Australia's leading online only lenders with a range of products that have great features and low costs.
Find out whether you can get a home loan application approved by a lender if you have bad credit.
I have an existing home with no mortgage. It’s worth about $900000.
I want to be able to borrow against the value of this asset to get a cheaper home elsewhere.
I want to make an offer on a home I have found….It may take some time to sell my existing property…I don’t want a bridging loan.
What are my options?
Therese
Hi Therese,
Thanks for your question.
You may want to consider refinancing your property, or accessing the equity through a line of credit home loan.
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’s more inclined to review your application.
Cheers,
Shirley
We need to borrow $140,0000. We have some land for sale.
Can we use thar land a deposit. But we are first home loaners. I am on a carers for my mum. Can you help me. Thanks
Hi Amelia,
Thanks for your question.
Generally, your deposit will need to be funds held in a bank account in Australia. As a first home buyer, you may be eligible for the FHOG if you buy a new property, and be exempt from stamp duty depending on the state or territory you reside in.
If you find that none of the loans we compare are suitable for your situation, there is always the option of speaking to a home loan broker. They will be able to help you further in narrowing down a suitable home loan option for you.
Cheers,
Shirley
Having gone through a marriage break up and finding myself with permanent disability that will get worse as time goes on, I am hoping to secure my physical and financial future with an owner occupier home loan. Though I have no on hand cash at the current moment other than a few hundered in my account, that will change toward the end of year when my Super matures. I would be wanting to use around $120,000 of my own money toward a loan of equal amount. I did go through Bankruptcy due to divorce but am a discharged bankrupt now for over 3 years and have no credit cards or debt other than day to day living expenses. Is it going to be possible for me to bring my plan to fruitation. I have also rented the same property for 8 years and pay an amount of $580 a fortnight in rent. Hoping you can give me some advice on the best way to achieve my goal.
Hi Curious,
Thanks for your question.
Since you have been discharged for over three years and have a deposit saved up, most lenders should consider your application.
If you find that you are having trouble finding a lender, you may want to approach a bad credit specialist lender. The requirement is that you have a 10% deposit.
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 son wants to buy an investment property in his name in NSW for $250000. He intends to let it out at the rate of $320 per week. He has $40,000 deposit saved. He is currently seeking part-time work. As he is still at Uni I am prepared to act as guarantor for the mortgage. I reside in Qld and fully own my property which is valued at $600,000. Please advise the best way for him to proceed.
Hi Denise,
Thanks for your question.
You can compare a range of guarantor loans and check your eligibility.
I also 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 is more inclined to review your application.
Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you.
Cheers,
Shirley
Currently using a broker to source cheap house loans etc, but we end up paying her a fee in our repayments, want to avoid this an refinance our loan that’s split to new fixed rates to save some money (as the rates have dropped) fixed term at least 3-5 years which bank/credit union offers the best rate, how can I go about this without using the broker and paying her monthly
cheers Maria’
Hi Maria,
Thanks for your question.
Typically, you do not need to pay a mortgage broker a fee for using their services. The lender usually pays them on a commission based on the loan they have settled for you.
You may want to consider using one of the mortgage brokers we have compared. Please ensure that before you commit to anything, it is best to confirm that they do not charge a fee within your repayments. Remember to ensure to read through the relevant product disclosure statement and terms and conditions to ensure that you got everything covered before you apply for the loan.
Cheers,
Shirley