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
By using the equity you have in your property, you could borrow cash for a number of reasons without needing to make regular repayments back into the loan.
Exclusive home loan rates are available for Woolworths staff and their family members through Woolworths Team Bank. Borrowers can benefit from no annual or monthly fees, too.
If you need access to a sum of cash and you've already built equity in your home, you can refinance your home loan to a higher amount and withdraw the difference in cash. Here's how it works.
How much does the average Australian home buyer need to save for a house deposit?
Taking out a home loan can seem like a huge mountain to climb. But when you break it down into these 10 key steps, it becomes much easier.
Home loan cashback deals can help you refinance to a cheaper interest rate and get a lump sum cash payment.
Parents give their kids an average of $33,278 to help with a house deposit, according to 2023 data from Finder's CST.
Work out how much you need to earn to buy a house in any Australian suburb.
Most home loans will charge fees of one type or another. Read our guide and learn what you might be in for, rough estimates on how much each fee costs and some methods to avoid them.
Variable vs fixed home loan - which one saves you more money? We show you how to compare rates and features to get the best deal on your mortgage.
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