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.
Our picks for the best home loans for August:
These home loans have a Finder Score of at least 8/10. The higher the score, the better the loan against others in its category. Scores above an 8 will have lower rates and fees than other loans of its type.
You can’t borrow more than 80% of the property value
Why we like it
This home loan offers a perk like no other. Not only does it consistently have great rates, but for every year that you have the loan, Unloan will knock 0.01% off your interest rate. This means your loan will get slightly cheaper every year (on top of being a consistently low rate compared to most home loans).
Unloan doesn't bump up the costs in other areas either, as this home loan has no fees. If you're not concerned about an offset account, it's hard to beat a loan this cheap.
This home loan has a Finder Score of 9.6.
Best home loan pick for first home buyers
G&C Mutual Bank First Home Buyer - (Owner Occupier, P&I)
With LMI you can take out this loan with as little as a 5% deposit
There are no establishment or ongoing fees
You can make unlimited extra repayments and redraw the funds
This product is only available if you’re a first home buyer
If you’d prefer to deal with a lender in person, G&C Mutual Bank only has 6 service centres in NSW and 1 in Melbourne
Why we like it
Rewarding first home buyers with a home loan packed with benefits, G&C Mutual scores a high Finder Score for this product. Not only can you take out this loan with only a 5% deposit, it offers you the flexibility to make unlimited extra repayments and the ability to redraw those funds if you need them. That's great for new buyers who are keen to get ahead on their home loan but with the option to access the cash in an emergency.
You can’t borrow more than 80% of the property value
Why we like it
Investors sometimes pull the short straw with their home loans, but Unloan rewards its investor borrowers with the same perk as its owner occupiers. For every year you hold the loan, Unloan will knock off 0.01% from the interest rate. Add that to no fees and unlimited redraw, this makes a great loan.
This home loan has a Finder Score of 9.8.
Best home loan pick for cashback
Newcastle Permanent Real Deal Home Loan - Special Offer 1 (Owner Occupier, P&I)
This loan comes with a redraw facility for extra repayments.
You can split your home loan into multiple loan account.
A high application fee of $595.
There is no offset account attached to this loan.
Much higher interest rates for borrowers with LVRs of above 80%.
Why we like it
Offering extra repayments and free redraw isn’t necessarily a unique feature. But if you’ve got a deposit or home equity worth more than 20% of the property price, this loan gives you a whopping 2.20% discount. Although there’s a high $595 application fee, you’ve got no ongoing fees to worry about while you pay off the loan itself.
You can’t borrow more than 80% of the property value
Why we like it
This home loan offers a perk like no other. Not only does it consistently have great rates, but for every year that you have the loan, Unloan will knock 0.01% off your interest rate. This means your loan will get slightly cheaper every year (on top of being a consistently low rate compared to most home loans).
Unloan doesn't bump up the costs in other areas either, as this home loan has no fees. If you're not concerned about an offset account, it's hard to beat a loan this cheap.
This home loan has a Finder Score of 9.6.
Best home loan pick for offset
loans.com.au Variable Home Loan - LVR 90% (Owner Occupier, P&I)
Optional offset account comes with an additional 0.10% added to the interest rate
Why we like it
Even though the option of an offset account comes with an 0.10% increase of the interest rate, the final rate is still lower than many other products which offer offset accounts. This product also don't charge upfront or service fees, keeping the cost even lower.
This home loan has a Finder Score of 9.5.
How do I get the best deal on a home loan?
There are 3 things every borrower needs to look at when hunting for the perfect home loan:
Find a lower rate
Avoid big fees
Get the mortgage features you need
1. Find a lower rate
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.
2. Avoid big fees
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.
Home loans with added features can offer you more flexibility in how you repay and manage your loan:
Offset accounts can help you cut down your interest repayments.
Redraw facilities let you take out extra money you've paid into your mortgage to use in emergencies.
Loan portability lets you move your home loan from one property to another without refinancing.
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 home
Plenty of property investors haven't paid their own home loans off yet. For this type of borrower, one approach could be as follows:
Make sure your owner-occupier loan has a low interest rate. Focus on repaying this debt as fast as possible. The interest you pay on your home loan is not tax deductible. But it is on your investment loan.
Choose interest-only repayments on your investment loan. This allows you to minimise your investment loan repayments while focusing on your own home loan first. This makes sense because the interest is tax deductible too.
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% deposit
Many 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 savings
Whether 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 time
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. Or you might try an online lender with a fast approval process.
You're a young couple wanting to start a family
Whether 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 2025?
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 2025 Finder Best Home Loan Awards. Like the loans with high Finder Scores, these loans will have lower costs than other loans in their category.
🏆 Best Customer-Owner Home Loan Lender – Easy Street
🏆 Best Owner Occupier Variable Home Loan – Tiimely Home – Own 10% deposit variable Rate - Principal and Interest (with offset)
🏆 Best Owner Occupier Fixed Home Loan - 1 year – Qantas Money – Fixed Rate Home Loan - 100% Offset 1 year Fixed (Owner Occupier, P&I)
🏆 Best First Home Buyer Home Loan – Tiimely Home - Own 10% deposit variable Rate - Principal and Interest (with offset)
🏆 Best Refinance Variable Home Loan – Tiimely Home – Own 10% deposit variable Rate - Principal and Interest (with offset)
🏆 Best Refinance Variable Home Loan - Large Bank – Bendigo Bank – Express Variable Home Loan (owner occupier, P&I)
🏆 Best Investor P&I Variable Home Loan – Easy Street - Smart Variable Home Loan (investor, P&I)
🏆 Best Investor IO Variable Home Loan – Queensland Country Bank – Ultimate Home Loan Package, Special Variable Rate, (Investor, IO)
🏆 Best Investor P&I Fixed Home Loan - 1 Year – Qantas Money – Fixed Home Loan, 100% offset, 1 year fixed (Investor, P&I)
🏆 Best Investor IO 1 year fixed home loan – Qantas Money – Fixed Home Loan, 100% offset, 1 year fixed (Investor, IO)
🏆 Best Fixed Home Loan Lender - Investor – Qantas Money
🏆 Best Value Home Loan – Unloan - Variable Home Loan (Owner Occupier)
Check out the full awards page to learn more about how we chose the winners.
Top 5 home loan providers for customer satisfaction in 2025
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%
Need more help finding the best home loan for you? Talk to a mortgage 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.
There's no one best home loan for every borrower. And there is certainly isn't one bank that consistently has the best home loan in Australia.
Online lenders tend to offer the lowest interest rates. For many borrowers that's enough. But it's worth comparing a wide range of lenders to make sure you really find the bank or lender with the best loan for you.
At the moment, the home loan market is incredibly competitive and rates are changing as lenders expect the cash rate to fall.
Typically, the lowest interest rates are offered by online lenders rather than larger banks like the Big Four. But there's not always a big gap, and this doesn't mean the Big Four don't offer the best loan for you.
Finding the best interest rate is still important though, because you can save thousands in the cost of repayments.
A $600,000 home loan with a 5.00% interest rate over 30 years would cost you $3,221 a month. But the same loan with an interest rate of 5.50% would cost you $3,407 a month. That's $2,232 more expensive in a year.
Rates vary based on the loan type and features. But as a general guide:
The average variable owner occupier interest rate for December 2025 is 6.46%. The lowest variable owner occupier interest rate for December 2025 is 4.99%
The average fixed owner occupier interest rate for December 2025 is 5.72%. The lowest fixed owner occupier interest rate for December 2025 is 4.74%
To get a wider sense of what's a competitive rate in the current market, take a look at our current home loan rates guide.
Even with rates dropping 4.75% is a good rate. It would be a particularly good interest rate for a variable rate right now, but variable rates are still above 5% (with exceptions of some special offers). The lowest fixed rate home loan is below 4.75%.
The rate you can get also depends on each lender but also whether it is P&I or interest only; whether it is investment or owner occupied; and what your LVR is. It is only a good interest rate if it delivers the home loan you need.
Package home loans offer you a combination of a home loan, bank account and a credit card, sometimes with other products too.
They can be a good offering if you are in the market for those other products, as they usually remove the normal fees for those additional products. The loans come with very competitive fees. In fact, many package loans score highly with our Finder Score, meaning they are competitive in cost with basic home loans.
Package home loans will come with an annual package fee though. This can cost a few hundred dollars a year and 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. [/fin_accordion]
Explaining our top picks
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:
First home buyers
Refinancers
Investors
Redraw
Offset accounts
Cashback offers
What is Finder Score?
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.
Rebecca Pike is Finder’s money editor, with over 7 years of experience in mortgages and personal finance. A frequent TV and radio commentator, she frequently appears on Sunrise and 7News, Today and 9News, as well as Sky News, Channel 10 and across radio and print. Rebecca previously served as Editor of Mortgage Professional Australia. She has a Master’s degree in Journalism as well as ASIC-recognised certifications in Tier 1 Generic Knowledge and Tier 2 General Advice Deposit Products, which comply with ASIC guidelines.
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Do lenders policies change regularly?
Which lenders lend against Centrelink payments and which payments?
Are there government regulations about lending against Centrelink income?
Finder
ShirleyJanuary 19, 2015Finder
Hi George,
Thanks for your question.
Lending policies tend to change according to national legislation and regulations. The Australian Prudential Regulation Authority website is a good source of this information and to stay updated.
Please see Centrelink loan options for a list of lenders that lend against Centrelink payments. The type of payments that they lend against will most often depend on their policy and the nature of the payments. You can find a list of them on the same page.
In terms of government regulations, pensions are usually regarded as income in the same way as wages and salary. However, the lender has a duty to ensure that the loan is serviceable by the borrower and therefore, generally can’t be the main source of income.
Cheers,
Shirley
chrisJanuary 18, 2015
With loans.com.au….. I need to put $90,000 of my savings into their account to benefit the offset facility as well as my monthly wages….. Q. HOW SAFE & SECURE is all y money there??? Eg, especially online fraud activity (from their end) etc etc???
Finder
ShirleyJanuary 19, 2015Finder
Hi Chris,
Thanks for your question.
The loans.com.au customer care team will be able to discuss this matter to you as we do not have the authority to disclose any information such as this in a public forum.
loans.com.au currently uses an OpenSSL encryption standard that features a full strength general purpose cryptography library.
Cheers,
Shirley
AnandDecember 10, 2014
hi
I started new job a month ago and its casual basis, how long my job would be to qualify for home loan ? I heard some banks requires minimum 3 months job profile, but I don’t know which ones ..
Can you please let me know banks which requires minimum 3 moths or less job for home loan.
thanks.
Finder
ShirleyDecember 11, 2014Finder
Hi Anand,
Thanks for your question.
For this enquiry, it’s advisable that you get in touch with a mortgage broker instead. They will be able to search their database for lenders that can lend to those who have been working for less than three months.
Cheers,
Shirley
PhilomenaNovember 24, 2014
I need to reduce my current interest rate with NAB for the two Variable Rate Loans is 5.28%.
What are my options? I heard on TV today that Heritage Bank is offering the rate of 4.39%. Bank of Qld is currently offering me 4.87%.
I would like to find out from you, a list of such options together with fees required initially for a change-over to another institution. And, will NAB charge me a Penalty Fee for switching to another financial institution?
Philomena.
Finder
ShirleyNovember 25, 2014Finder
Hi Philomena,
Thanks for your question.
Just wanted to let you know that I’ve emailed you a response instead.
Cheers,
Shirley
shintoNovember 21, 2014
hi,
does my employment status affect the application of a home loan? as per my employment contract i work part time (30 hrs permanent/week) . in fact i work fulltime.i am new to home loan & procedures . anyone can help me to know the procedures & processes in home buying & home loan ?
Finder
ShirleyNovember 24, 2014Finder
Hi Shinto,
Thanks for your question.
Your employment is one of the considerations for your home loan application. Your lender will also look at things such as in your income, credit history, personal and financial situation.
A mortgage broker can help you regarding the procedures and processes in buying a home loan.
Home loan cashback deals can help you refinance to a cheaper interest rate and get a lump sum cash payment. Compare the latest deals and check your eligibility today.
Construction loan comparison is as simple as finding out how much you can borrow, then reviewing some of the best construction loans on the market to find the right fit.
What is an offset account? It can save you thousands in interest and help you own your home sooner.
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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.
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A property investor with a mortgage on the family home
A first home buyer struggling to save a 20% deposit
A homebuyer with extra money in savings
You've signed a contract to buy and you're running out of time
You're a young couple wanting to start a family
What are the best home loans in 2025?
Do lenders policies change regularly?
Which lenders lend against Centrelink payments and which payments?
Are there government regulations about lending against Centrelink income?
Hi George,
Thanks for your question.
Lending policies tend to change according to national legislation and regulations. The Australian Prudential Regulation Authority website is a good source of this information and to stay updated.
Please see Centrelink loan options for a list of lenders that lend against Centrelink payments. The type of payments that they lend against will most often depend on their policy and the nature of the payments. You can find a list of them on the same page.
In terms of government regulations, pensions are usually regarded as income in the same way as wages and salary. However, the lender has a duty to ensure that the loan is serviceable by the borrower and therefore, generally can’t be the main source of income.
Cheers,
Shirley
With loans.com.au….. I need to put $90,000 of my savings into their account to benefit the offset facility as well as my monthly wages….. Q. HOW SAFE & SECURE is all y money there??? Eg, especially online fraud activity (from their end) etc etc???
Hi Chris,
Thanks for your question.
The loans.com.au customer care team will be able to discuss this matter to you as we do not have the authority to disclose any information such as this in a public forum.
loans.com.au currently uses an OpenSSL encryption standard that features a full strength general purpose cryptography library.
Cheers,
Shirley
hi
I started new job a month ago and its casual basis, how long my job would be to qualify for home loan ? I heard some banks requires minimum 3 months job profile, but I don’t know which ones ..
Can you please let me know banks which requires minimum 3 moths or less job for home loan.
thanks.
Hi Anand,
Thanks for your question.
For this enquiry, it’s advisable that you get in touch with a mortgage broker instead. They will be able to search their database for lenders that can lend to those who have been working for less than three months.
Cheers,
Shirley
I need to reduce my current interest rate with NAB for the two Variable Rate Loans is 5.28%.
What are my options? I heard on TV today that Heritage Bank is offering the rate of 4.39%. Bank of Qld is currently offering me 4.87%.
I would like to find out from you, a list of such options together with fees required initially for a change-over to another institution. And, will NAB charge me a Penalty Fee for switching to another financial institution?
Philomena.
Hi Philomena,
Thanks for your question.
Just wanted to let you know that I’ve emailed you a response instead.
Cheers,
Shirley
hi,
does my employment status affect the application of a home loan? as per my employment contract i work part time (30 hrs permanent/week) . in fact i work fulltime.i am new to home loan & procedures . anyone can help me to know the procedures & processes in home buying & home loan ?
Hi Shinto,
Thanks for your question.
Your employment is one of the considerations for your home loan application. Your lender will also look at things such as in your income, credit history, personal and financial situation.
A mortgage broker can help you regarding the procedures and processes in buying a home loan.
Cheers,
Shirley