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
Australian borrowers are facing decades of mortgage stress, mortgage prison, and home loans that follow them into retirement.
Home loan cashback deals can help you refinance to a cheaper interest rate and get a lump sum cash payment.
Work out how much you need to earn to buy a house in any Australian suburb.
Mortgage stress refers to when a homeowner is paying over 30% of their income towards repayments on their home loan.
Our comprehensive guide to home loan statistics.
We compile the average home loan interest rates in the market and update them monthly.
Compare current bank interest rates for home loans, credit cards, personal loans, savings accounts and term deposits to find the best deal for you.
You may be able to get a low deposit home loan with just a 5% cash deposit. Here are the lenders who are more likely to lend you a 95% loan.
Find a great deal on a variable interest rate home loan from lenders large and small. Start comparing and saving today.
does this interest rste apply to investment loans as well?
Hi Eva,
Thanks for the question.
Generally speaking, the interest rates offered by a lender for a particular home loan will be the same for buying a home to live in and to use as an investment. It should be noted that if you use a home loan to purchase an investment property a lender might offer slightly different terms, such as offering a lower Loan to Value Ratio, but for the most part terms will be the same. You can read more about investment property loans.
I hope this helps,
Marc.
Hi..
I just have a question pls. Is it normal for lenders to ask for credit card & wanting to take the amount of the valuation fee for home loan even before the approval of the application?
Hi Eden,
Thanks for your question.
Unfortunately it depends on the policy of the lender. In most cases the lenders conduct a valuation before the approval stage because it’s used as part of the home loan application.
All the best,
Shirley
Hi I am looking for best variable loan for my first home, I am looking for 100% offset a/c facility, no annual fee, and no other hidden charges. Please guide me which one is the best options. Thanks, regards Ravi
Hi Ravk,
Thanks for the question.
The best option for you will depend on a range of personal factors, including your deposit, property purchase price, income, and what features you will use. A good place to start might be to compare home loans with 100% offset accounts, and then use the table sorters to sort by loans that have no annual fees.
In general, most home loans that charge an annual fee are package home loans, so keeping this in mind will help you avoid these kinds of fees. If you’re unsure of which loan might suit you, sometimes a mortgage broker can help you. They’ll compare home loans for you based on your circumstances to find you the right one, and generally don’t charge you for their services (they instead get a commission from the lenders).
I hope this helps,
Marc
what happens if the lender you goes bad as I have never heard of some these lender before today
Hi Gary,
Thanks for your question.
It usually depends on the terms and conditions of your loan. If a lender becomes insolvent, the property may still partly be in your name but you may not be able to use your redraw facility.
I’ve emailed you a page with more information.
Cheers,
Shirley
Hi Gary,
thanks for this great question.
In most cases, the lender’s mortgage book would be bought by another company, which would mean your repayments would continue as normal. You wouldn’t have to instantly pay back your loan in full. In some cases, certain features such as a redraw facility wouldn’t be able to be accessed.
It should be noted that many of these more unknown lenders are actually owned by larger banks. UBank for example is owned by NAB and Loans.com.au is the online branch of Firstmac.
I hope this helps,
Marc.
I have a home loan variable rate 5.32% for $38000, I applied for an increase of $30000,but advised fees of $732, is there any lenders that do not charge these fees.
Hi Barry,
Thanks for your question.
To our knowledge most lenders do charge a fee for ‘topping up’ your home loan; this is because the fee is generally cheaper than refinancing.
Cheers,
Shirley