| 6.09 | % p.a. |
| 6.19 | % p.a. |
| 6.29 | % p.a. |
| 6.20 | % p.a. |
| 5.99 | % p.a. |
| 5.90 | % p.a. |
Every month, our home loan experts analyse over 50 home loan rates from our database to find our best home loan picks. We only select home loans that are suitable for a typical borrower, so we don't include loans that require enormous deposits or have extra eligibility requirements.
We then rank these loans, with a scoring system that awards a higher score for loans with the lowest rates and fewest fees.
All our picks are from lenders with whom Finder has a commercial partnership. The best home loan looks a little different for every borrower, and our picks may not be the best option for your situation.
Best Home Loan Awards winners for 2024Every 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 2024 Finder Awards.
Check out the full awards page to learn more about how we chose the winners.
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.
Look for a loan that doesn't charge many fees. Ongoing annual fees can cost hundreds of dollars and one-off application or settlement fees can costs hundreds more.
While a low rate is more important, don't forget to add up the cost of fees.
Home loans with added features can offer you more flexibility in how you repay and manage your loan:
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.— Richard Whitten, money editor
Low rates and fees always matter. But every borrower's needs are slightly different. The best home loan for each borrower depends on their short- and long-term plans.
Here are some examples of specific borrowers with very different needs.
A property investor with a mortgage on the family homePlenty of 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 cautious homebuyer with plenty of extra money in savingsLet's say you have a 20% deposit and you're looking for a home loan. Obviously, the best loan for you has a low interest rate. But let's say you also have a lot of extra money sitting in your bank account earning very little interest.
Assuming you don't want to invest this money and want access to it in an emergency. In this scenario the best home loan for you will come with a 100% offset account.
The offset account means you can park your savings in the home loan. By saving the money there, you're cutting down the amount of interest your lender charges you.
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.
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.
Compare more home loan options here
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What is the best home loan rate for refinancing a $1.1m loan?
Hi Frederick,
The best home loan interest rate can vary depending on borrower circumstances and what you’re looking for in a home loan.
You can use our comparison tool to help you find the most competitive rates in the market. Consider your borrowing needs and shop around to look for loans with low fees and other loan features you might need.
You can also look into speaking with a mortgage broker to assist you in finding the loan that best fits your interest-rate needs and financial situation.
All the best,
Rebecca
I have a home loan for my current property around 300k. If i rent out that home rental income enough for pay capital& interest. If i want to buy another property, is it for borrowing power calculation is it total income alone
Used or bank use only % of my current income?
Hi Sue,
If the property has tenants and regular income the lender will probably take it into consideration when looking at borrowing power, but it’s worth checking with a lender before applying with them. Some lenders may only take 80% of your rental income as part of your borrowing power.
Best,
Nikki
hi,im looking for a low deposit home loan asap
Hi Angeles,
If you are looking for low deposit home loan providers, look at the “Max LVR” portion of the comparison table we are on. The higher the Max LVR, the lower your deposit would be. An example is: For a Max LVR of 80%, you provide 20% deposit on it. Hope this helps!
Cheers,
Reggie
I am 20 yrs old trying to go for my first house I work full time and I don’t have too much saved up yet in my opinion so where do I get started?
Hi Mark,
As a general rule, you need to save at least 10% of the property value. This can give a 5% buffer (for a maximum 95% LVR loan) to pay costs such as stamp duty and LMI onto the principal of the loan.
Ensure that there is a high likelihood that you’ll qualify for a home loan before you apply. The way the credit system works, each application for credit is recorded against your name. Multiple entries in a short space will more than likely lead to rejection. Other factors that lenders may consider to assess your eligibility are your income, assets, liabilities, employment and credit history.
Moreover, you mentioned that you are a first-time homebuyer. In this case, you may want to read our guide about the First Home Owners Grant.”
Finally, if you want to know more about the things you need in a loan when buying your first home.
Cheers,
Joshua
I am 48. Never had a loan for anything as I believe you don’t get unless you have. I am entitled to the first home owners grant. Currently I’m on a sickness benefit but looking for work down the track. I’ve been looking at rentals but if I can buy my own home rather than pay someone elses off I don’t see why not to go for it. Where do I stand ?
Hi Helen,
Thanks for reaching out to us. I hope all is well with you today.
At the moment, we do not have a specific list of home loan lenders that accept sickness benefits as your main source of income. Finding a lender may require you to do some research or you may contact a mortgage broker who can take your personal circumstance into account and offer you a range of borrowing options. Once you’ve found a lender who is willing to help, you may proceed with the regular application process. Please note that you will need to provide extra information about your income.
Before applying, please ensure that you meet the eligibility criteria and requirements of the loan option or lender and make sure to read the details, as well as the relevant Product Disclosure Statements / Terms & Conditions of the loan option before making a decision and consider whether the product or option is right for you.
I hope this helps.
Cheers,
Judith