Best home loan rates - our top expert picks April 2021 | Finder

Best home loan rates

Every month we analyse 100+ mortgages in our database to select our best home loan rates for refinancers, first home buyers and investors.

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Want the best home loan rate for you? We've looked at fees, features and interest rates to find some of the most competitive home loan offers on the market right now. Check out our top picks for April or compare rates for yourself.

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Read more about each of our top picks.

Methodology: How we chose our top picks

For our top home loan picks, we compared all the home loan products offered by our commercial partners in April 2021. This includes loans from large and small lenders. Our methodology analyses each loan based on how competitive the interest rate is and also takes the cost of various fees into account. Keep in mind that our top picks may not always be the best for you, and you're encouraged to compare for yourself to find one that works for you. Read our full methodology here to find out more.

Compare some of the best home loan rates on the market

Data updated regularly
$
years
Name Product Interest Rate (p.a.) Comp. Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment
loans.com.au Fixed
1.99%
2.7%
$0
$0 p.a.
80%
$554.81
Home buyers can lock in this low fixed rate for two years. This loan also allows extra repayments. Requires a 20% deposit.
Sydney Mutual Bank Special Fixed Home Loan
1.98%
2.79%
$250
$0 p.a.
95%
$554.06
A competitive fixed rate loan for home buyers. Available with a 5% deposit.
UBank UHomeLoan Fixed
2.09%
2.6%
$0
$0 p.a.
80%
$562.33
Pay no ongoing fees on this competitive investment loan and fix your rate for 3 years.
Westpac Flexi First Option Home Loan
2.29%
2.72%
$0
$8 monthly ($96 p.a.)
95%
$577.55
Up to $3,000 refinance cashback.
A flexible and competitive variable rate loan. Eligible borrowers refinancing $250,000 or more can get $2,000 cashback per property plus a bonus $1,000 for their first application. Other conditions apply.
St.George Fixed Rate Advantage Package
1.84%
3.38%
$0
$395 p.a.
80%
$543.64
Up to $4,000 refinance cashback
Borrowers with 20% deposits or equity can get this competitive fixed rate loan. Refinancers borrowing $250,000 or more can get up to $4,000 cashback (Other terms, conditions and exclusions apply).
HSBC Fixed Rate Home Loan Package
1.88%
2.86%
$0
$390 p.a.
80%
$546.6
$3,288 refinance cashback offer
Lock in a low fixed rate for 2 years and buy your home with a 20% deposit. Eligible refinancers borrowing $250,000 or more can get a $3,288 cashback. Terms and conditions apply.
UBank UHomeLoan Fixed
1.75%
2.22%
$0
$0 p.a.
80%
$537
This very low fixed rate is only available until 29 April 2021. Other conditions apply. A competitive fixed rate loan with no ongoing fees. Requires a 20% deposit
Westpac Fixed Option Home Loan Premier Advantage Package
1.89%
3.46%
$0
$395 p.a.
95%
$547.35
Up to $3,000 refinance cashback.
Eligible borrowers refinancing $250,000 or more can get up to $3,000 cashback. Other conditions apply.
St.George Basic Home Loan
2.49%
2.51%
$0
$0 p.a.
80%
$593.01
Up to $4,000 refinance cashback
Get this low-rate variable loan with a 20% deposit and pay $0 application fee. Borrow from $150k (or $250k to be eligible for the cashback offer) (terms, conditions & exclusions apply).
Suncorp Home Package Plus Fixed
1.89%
2.85%
$0
$0 p.a.
80%
$547.35
Lock in a low fixed rate loan for two years and get the annual package fee waived in the first year. Available for borrowers with 20% deposits.
Athena Variable Home  Loan
2.19%
2.19%
$0
$0 p.a.
60%
$569.91
Owner occupiers with 40% deposits or equity can get this competitive variable rate loan. No upfront or ongoing fees.
ANZ Simplicity PLUS Home Loan
2.72%
2.76%
$0
$0 p.a.
80%
$611.08
Get a low variable rate from ANZ and save money with $0 application fee, no ongoing fees and free redraw.
loans.com.au Smart Booster Discount Variable Home Loan
1.99%
2.47%
$0
$0 p.a.
80%
$554.81
Home buyers can get a very low discounted variable rate for the first year. This loan has a revert rate of 2.48%. Requires a 20% deposit. Add an offset account for an additional 0.10% on your interest rate.
AMP Bank Professional Package Fixed Loan
1.99%
3.1%
$0
$0 p.a.
80%
$554.81
Get a low fixed rate package with no application or settlement fee. Available with a 20% deposit. Other fees and charges apply.
Macquarie Bank Basic Fixed Home Loan
2.09%
2.43%
$0
$0 p.a.
70%
$562.33
Get a low interest rate and a mortgage with flexible, basic features. No application or ongoing fees. Requires a 30% deposit. Refinancers can switch with a convenient digital application.
UBank UHomeLoan Variable Rate
2.34%
2.34%
$0
$0 p.a.
80%
$581.39
Enjoy flexible repayments, a redraw facility and the ability to split your loan. Plus, pay no application or ongoing fees.
HSBC Home Value Loan
2.44%
2.45%
$0
$0 p.a.
80%
$589.12
$3,288 refinance cashback offer
Get a low interest variable rate loan with no ongoing fees. Plus you can make extra repayments and free redraw online. If you're refinancing $250,000 or above you can get a $3,288 cashback. Terms and conditions apply.
UBank UHomeLoan Fixed
1.99%
2.33%
$0
$0 p.a.
80%
$554.81
Fix your mortgage for 1 year with a very competitive rate and no ongoing fees.
Greater Bank Great Rate Fixed Home Loan
1.69%
3.49%
$0
$0 p.a.
110%
$532.6
Requires a family member to act as guarantor.
Get one of the lowest rates on the market with this fixed rate mortgage and borrow more with help from a family guarantor. NSW, QLD and ACT residents only.
Suncorp Home Package Plus Fixed
2.28%
3.15%
$0
$375 p.a.
80%
$576.78
Lock in a low fixed rate loan for three years and get the annual package fee waived in the first year. Available for borrowers with 10% deposits.
Macquarie Bank Basic Home Loan
2.49%
2.49%
$0
$0 p.a.
60%
$593.01
A competitive variable rate home loan for owner-occupiers. Requires a 40% deposit. Refinancers can switch with a convenient digital application.
Suncorp Back to Basics Home Loan
2.44%
2.45%
$0
$0 p.a.
80%
$589.12
A competitive variable interest rate loan with low fees. The establishment fee is waived if you borrow $150,000 or more.
IMB Fixed Rate Home Loan
1.97%
2.81%
$449
$6 monthly ($72 p.a.)
95%
$553.31
NSW and ACT customers only. 3 years fixed interest terms and free access to redraw facility online. Available with a 10% deposit.
homeloans.com.au Low Rate Home Loan with Offset
2.14%
2.16%
$0
$0 p.a.
60%
$566.11
A competitive rate with no application or ongoing fees. This loan is not available for construction.
Virgin Money Reward Me Fixed Rate Home Loan
1.94%
2.77%
$300
$10 monthly ($120 p.a.)
80%
$551.07
$3,000 refinance cashback.
Buy your home and lock in a low rate for the first two years. Get a $3,000 cashback when you switch to Virgin Money with a loan amount of $300,000 or more with an LVR up to 80%. You must apply by 28 May 2021 and settle by 27 August 2021.
Bank of Melbourne Basic Home Loan
2.49%
2.51%
$0
$0 p.a.
80%
$593.01
Up to $4,000 refinance cashback
A competitive variable rate loan. Refinancers borrowing $250,000 or more can get up to $4,000 cashback (Other terms, conditions and exclusions apply).
homeloans.com.au Low Rate Home Loan with Offset
2.24%
2.26%
$0
$0 p.a.
90%
$573.72
This loan offers a competitive variable rate and a 100% offset account to help save you on interest repayments. This loan is not available for construction.
BankSA Basic Home Loan
2.49%
2.51%
$0
$0 p.a.
80%
$593.01
Up to $4,000 refinance cashback
A competitive variable rate loan from BankSA. Refinancers borrowing $200,000 or more can get up to $4,000 cashback (Other terms, conditions and exclusions apply).
Bank of Melbourne Advantage Package Fixed Home Loan
1.94%
3.21%
$0
$395 p.a.
80%
$551.07
Up to $4,000 refinance cashback
Lock in a low fixed rate loan for four years. Refinancers borrowing $250,000 or more can get up to $4,000 cashback (Other terms, conditions and exclusions apply).
CUA Achieve Variable Home Loan
2.35%
2.4%
$600
$0 p.a.
95%
$582.16
Home buyers can get a competitive, low-fee variable rate plus a 100% offset account. Low deposit option available. Eligible new home buyers with low deposits can apply for the First Home Loan Deposit Scheme with this lender and avoid LMI costs. Eligible refinancers can get a $2,000 pre-paid credit card when they switch to CUA.
Westpac Fixed Option Home Loan Premier Advantage Package
1.99%
3.29%
$0
$395 p.a.
95%
$554.81
Up to $3,000 refinance cashback. Lock in a very low rate for four years with this owner occupier loan. Eligible borrowers refinancing $250,000 or more can get up to $3,000 cashback. Other conditions apply.
BankSA Advantage Package Fixed Home Loan
1.89%
3.43%
$0
$395 p.a.
80%
$547.35
Up to $4,000 refinance cashback.
Fix to a low rate for two years and forget about rate rises. Refinancers borrowing $200,000 or more can get up to $4,000 cashback (Other terms, conditions and exclusions apply).
Bank of Melbourne Advantage Package Fixed Home Loan
1.84%
3.38%
$0
$395 p.a.
80%
$543.64
Up to $4,000 refinance cashback
Get a competitive home loan rate for two years. Requires at least a 20% deposit. Refinancers borrowing $250,000 or more can get up to $4,000 cashback (Other terms, conditions and exclusions apply).
BankSA Advantage Package Fixed Home Loan
1.99%
3.26%
$0
$395 p.a.
$554.81
Up to $4,000 refinance cashback
A competitive fixed rate loan. Refinancers borrowing $200,000 or more can get up to $4,000 cashback (Other terms, conditions and exclusions apply).
Heritage Bank Fixed Rate Home Loan
2.19%
4.23%
$600
$8 monthly ($96 p.a.)
95%
$569.91
Get a partial offset account and the option to make interest-only repayments.
St.George Fixed Rate Advantage Package
1.94%
3.21%
$0
$395 p.a.
80%
$551.07
Up to $4,000 refinance cashback
Lock in a very low rate for four years. Requires a 20% deposit. Refinancers borrowing $250,000 or more can get up to $4,000 cashback (Other terms, conditions and exclusions apply).
Athena Variable Home  Loan
2.24%
2.21%
$0
$0 p.a.
70%
$573.72
A low variable rate for owner occupiers with 30% deposits. No upfront or ongoing fees.
Newcastle Permanent Building Society  Premium Plus Package Fixed Rate
2.28%
3.84%
$0
$395 p.a.
95%
$576.78
$2,000 refinance cashback
Enjoy a competitive rate with no application fee for this package loan. $2,000 cashback for eligible refinancers borrowing $250,000 or more.
Greater Bank Great Rate Discount Variable with Family Pledge Home Loan
2.59%
2.6%
$0
$0 p.a.
110%
$600.83
Pay no deposit or LMI and get a discounted rate with this family pledge loan. Requires a family member to act as guarantor. NSW, QLD and ACT only.
IMB Budget Home Loan
2.58%
2.64%
$449
$0 p.a.
80%
$600.05
A competitive variable rate for borrowers with 20% deposits saved. Available for NSW and ACT borrowers only.
homeloans.com.au Low Rate Home Loan with Offset
2.69%
2.52%
$0
$0 p.a.
80%
$608.71
A competitive rate with no application or ongoing fee. This loan is not available for construction.
UBank UHomeLoan Fixed
2.14%
2.35%
$0
$0 p.a.
80%
$566.11
A one year fixed rate offer with no ongoing bank fees.
Heritage Bank Discount Variable Home Loan
2.59%
2.64%
$600
$0 p.a.
80%
$600.83
Family guarantee option available. Enjoy flexible repayments and a low minimum loan amount.
UBank UHomeLoan Fixed
2.14%
2.71%
$0
$0 p.a.
80%
$566.11
Investors can enjoy flexible repayments and an easy application process with this pioneering online lender.
Heritage Bank Advantage Package Fixed
2.39%
3.15%
$0
$350 p.a.
95%
$585.25
Get a partial offset account and flexible repayments with this package loan.
homeloans.com.au Low Rate Home Loan with Offset
2.59%
2.42%
$0
$0 p.a.
60%
$600.83
Macquarie Bank Offset Home Loan Package
2.49%
2.76%
$0
$0 p.a.
60%
$593.01
A sharp variable rate with low fees for borrowers with 40% deposits or refinancers with equity in their properties. Refinancers can switch with a convenient digital application.
loans.com.au Smart Booster Discount Variable Home Loan
1.99%
2.71%
$0
$0 p.a.
80%
$554.81
If you have an owner occupier loan with loans.com.au you can also get this very low rate variable mortgage for your investment property. Principal and interest repayments. Add an offset account for an additional 0.10% on your interest rate.
homeloans.com.au Low Rate Home Loan with Offset
2.74%
2.76%
$0
$0 p.a.
90%
$612.67
Access a fee-free offset account and a special interest rate for investors. This loan is not available for construction.
St.George Basic Home Loan
2.54%
2.56%
$0
$0 p.a.
90%
$596.91
$2,000 cashback.
With this competitive variable rate loan from St.George, refinancers borrowing $250,000+ can get a $2,000 cashback (terms, conditions & exclusions apply)
Macquarie Bank Basic Fixed Home Loan
2.19%
2.53%
$0
$0 p.a.
80%
$569.91
Borrow up to $750,000 with this basic 3 years fixed rate home loan. Refinancers can switch with a convenient digital application.
Bank of Melbourne Basic Home Loan
2.54%
2.56%
$0
$0 p.a.
90%
$596.91
$2,000 cashback
A competitive variable rate loan. Refinancers borrowing $250,000 or more can get a $2,000 cashback (Other terms, conditions and exclusions apply).
homeloans.com.au Low Rate Home Loan with Offset
2.39%
2.41%
$0
$0 p.a.
80%
$585.25
This investment loan keeps fees low, has a sharp interest rate and comes with a 100% offset account. This loan is not available for construction.
IMB Budget Home Loan
2.68%
2.74%
$449
$0 p.a.
95%
$607.92
NSW and ACT customers only. You can get an interest rate discount for a limited time with this competitive variable mortgage.
Newcastle Permanent Building Society Real Deal Home Loan
2.59%
2.63%
$595
$0 p.a.
80%
$600.83
$2,000 refinance cashback
$2,000 cashback for eligible refinancers borrowing $250,000 or more.
UBank UHomeLoan Variable Rate
2.74%
2.74%
$0
$0 p.a.
80%
$612.67
Get a discounted, low-fee investor loan from a convenient online lender. 20% deposit required.
Virgin Money Reward Me Variable Home Loan
2.59%
2.76%
$300
$10 monthly ($120 p.a.)
60%
$600.83
$3,000 refinance cashback.
A variable rate loan for owner occupiers with a 40% deposit (or equity) borrowing under $500,000. Get a $3,000 cashback when you switch to Virgin Money with a loan amount of $300,000 or more with an LVR up to 80%. You must apply by 28 May 2021 and settle by 27 August 2021.
homeloans.com.au Low Rate Home Loan with Offset
2.29%
2.31%
$0
$0 p.a.
60%
$577.55
A competitive rate with no application or ongoing fee. This loan is not available for construction.
IMB Fixed Rate Home Loan
1.89%
2.87%
$449
$6 monthly ($72 p.a.)
95%
$547.35
NSW and ACT customers only. Lock in a low fixed rate for two years. Available with a 5% deposit.
Newcastle Permanent Building Society  Premium Plus Package Fixed Rate
2.19%
3.72%
$0
$395 p.a.
95%
$569.91
$2,000 refinance cashback
Enjoy a discounted fixed rate and the ability to package the loan with other financial products. $2,000 cashback for eligible refinancers borrowing $250,000 or more.
homeloans.com.au Low Rate Home Loan with Offset
2.59%
2.61%
$0
$0 p.a.
90%
$600.83
Save on interest with a free 100% offset account and buy your property with just a 10% deposit. This loan is not available for construction.
IMB Fixed Rate Home Loan
2.49%
3.36%
$449
$6 monthly ($72 p.a.)
90%
$593.01
NSW and ACT customers only. A 3 years fixed rate investor which allows extra repayments to be made.
UBank UHomeLoan Fixed
2.29%
2.72%
$0
$0 p.a.
80%
$577.55
Investors can enjoy flexible repayments and an easy application process with this pioneering online lender.
HSBC Home Value Loan
2.54%
2.55%
$0
$0 p.a.
90%
$596.91
A competitive value home loan with no ongoing fee.
Newcastle Permanent Building Society Fixed Rate Home Loan
2.29%
3.94%
$595
$0 p.a.
95%
$577.55
$2,000 refinance cashback
Borrow up to 95% LVR of the value of the property you're buying and pay no ongoing fees. $2,000 cashback for eligible refinancers borrowing $250,000 or more.
Macquarie Bank Basic Home Loan
2.64%
2.64%
$0
$0 p.a.
80%
$604.76
Pay no application and ongoing fees and take advantage of split and redraw options. Refinancers can switch with a convenient digital application.
Newcastle Permanent Building Society Premium Plus Package Home Loan
2.94%
3.34%
$0
$395 p.a.
95%
$628.65
$2,000 refinance cashback
New borrowers or refinancers can get a discounted rate with this package loan. $2,000 cashback for eligible refinancers borrowing $250,000 or more.
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Disclaimer

*The products compared on this page are chosen from a range of offers available to us and are not representative of all the products available in the market. There is no perfect order or perfect ranking system for the products we list on our Site, so we provide you with the functionality to self-select, re-order and compare products. The initial display order is influenced by a range of factors including conversion rates, product costs and commercial arrangements, so please don't interpret the listing order as an endorsement or recommendation from us. We're happy to provide you with the tools you need to make better decisions, but we'd like you to make your own decisions and compare and assess products based on your own preferences, circumstances and needs.

Finder's top home loan rate picks for April 2021

Top pick for refinancers: loans.com.au Fixed - 3 Year Fixed Special (Owner Occupier, P&I)

Switching to a rate under 2% and locking it in for three whole years represents excellent value in the current market. With very limited fees and a 100% offset account, this loan is a good deal.

Top pick for first home buyers: Sydney Mutual Bank Special Fixed Home Loan - 3 Year (Owner Occupier, P&I)

Fixing your rate for 3 years under 2% is a great start to a home loan. The fact that it's also available with just a 5% deposit makes it a very compelling home loan for first home buyers.

Top pick for investors: UBank UHomeLoan - 3 Year Fixed Rate (Investor, P&I)

This investment loan from online lender UBank lets investors lock in a competitive rate for three years and pay minimal fees. You will need a 20% deposit. With a low minimum loan amount this loan is also a good choice if you're looking to fund a smaller investment purchase.

How did we choose our top home loans picks?

Finder compares home loans from across the market. Every month, we examine the home loans offered by our commercial partners and select our top picks. Our selections are based on an objective criteria. While the best home loan looks a little different for every borrower, our methodology considers interest rates, fee costs and loan purpose. These are important factors for every borrower.

Keep in mind, however, that our top picks may not always be best for you. Based on your situation, you may find certain loan features to be more or less important. Always compare your options before you apply.

We compared all home loans currently offered by our commercial partners. This is a selection of lenders that includes large banks, credit unions and smaller online lenders. But we do not examine every loan in the market. You may find a loan with a lower rate or more suitable features somewhere else.

Our top picks are divided into three categories based on different borrower's needs:

Your individual circumstances and financial needs may differ from other borrowers, so always research widely and choose a product that suits your circumstances.

What is the best home loan for you?

David Smith, Chief Customer Officer of mortgage broking firm Aussie, says when you're deciding which home loan to get, it pays to keep in mind that every borrower is different.

"It's fair to say it's going to be one of the biggest decisions you'll ever make. It's one of the most complex, too," Smith explains.

"The first consideration you should make when choosing a home loan is to understand how much you can afford. That doesn't just mean the maximum amount you can borrow – it also means the maximum you're prepared to pay each month for your loan repayment."

From there, you can plan a budget with your home loan repayments in mind.

"Don't forget, when you purchase a property, there are a number of other upfront costs to cover, including stamp duty – so make sure you factor those extra costs in too," Smith says.

Here are some examples of typical borrowers. While all borrowers are looking for the best home loan to suit them, they all need something a little different.

The cash-strapped first home buyers

home loan types

Our hypothetical first home buyers Sarah and Ted are in their late 20s and currently renting. They've squirrelled away their money for four years and they've saved up $100,000, but because they live in Sydney, this isn't a very big deposit.

The best home loan for this young couple will ideally have the following:

  • Has a low interest rate. They cannot afford massive repayments.
  • Is a low deposit loan. They probably haven't saved a 20% deposit, so they'll need a loan with a maximum insured LVR of 90% or 95%.
  • Has a guarantor option. Alternatively, Sarah or Tom's parents may be willing to guarantee a portion of their deposit, so a loan that allows for guarantors is a great option.

With these criteria, Sarah and Ted find a low rate loan with a high LVR. They ask their lender if it accepts guarantors, which it does. Sarah's parents guarantee 15%, so they only need a 5% deposit and they can avoid paying lenders mortgage insurance. The loan they choose does come with a hefty application fee, but they decide it's worth paying because everything else about the loan is perfect for them.

Although the idea of saving a big deposit may be intimidating, the First Home Buyers Deposit Scheme means you only need to save a 5% deposit to get your foot on the property ladder.

And as David Smith from Aussie says, with low interest rates on offer and a number of other state and federal government incentives available, this could be the ideal time to get into the market.

"First home buyers could be paying less in mortgage repayments than you would in rent in the same suburb, according to Aussie's Buy vs Rent 2020 Report released in early November 2020," Smith says.

The cautious investor

home loan types

Until recently, investors have been accustomed to paying far more than owner-occupiers for their property loans. But that's no longer the case, with very competitive investment loans available, and banks once again vying for investors' business.

"If you're already a homeowner or an investor wanting to refinance or upgrade, housing affordability has never been cheaper than it is today, thanks to these record low interest rates that are expected to stick around for at least another three years," Smith says.

In our hypothetical example, Margaret is currently paying off her home. She wants to buy a unit as an investment. She has $400,000 in equity and will use a line of credit loan to cover her deposit. But she'll need a loan to buy the unit. She is less concerned with fast capital growth and more concerned with long-term income from rent.

The best loan for Margaret will have the following:

  • Is an investment loan. She cannot purchase an investment property with an owner-occupier loan.
  • Has a competitive interest rate. Investment loans have higher interest rates, so she needs to shop around for the best deal.
  • Has limited features. As Margaret doesn't have much left in savings, she isn't able to put money into an offset account, so she doesn't need to pay extra for a full-featured loan that she won't use.

Margaret talks to a mortgage broker who helps her organise the line of credit loan and an investment loan.

The homeowner who is paying too much in interest

home loan types
Our final hypothetical example, David, is paying off a $1 million mortgage with a 30-year loan term. He has been repaying the loan for 10 years. David hadn't looked at his interest rate in a while and was shocked to learn that the rate is above 3.30% – when he sees advertisements for other banks and lenders that begin with 1%. His current loan is a basic, no-frills variable loan without many extra features.

David wants to refinance to a loan that has the following features:

  • Has a much lower interest rate. This could save David thousands of dollars a year.
  • Has low fees. David's current mortgage has a hefty discharge fee. He wants to switch to a mortgage that doesn't slug him with more costs.
  • Has an offset account. David has managed to put away a bit of extra money while making repayments. He wants to put this cash into an offset to lower his interest repayments.

David finds a low-fee variable rate home loan that has a 100% offset account. While his previous rate was around 3.30%, his new rate is 2.59%. He's now paying less interest each month.

Importantly, David doesn't refinance to a new 30-year loan term. Because he has been making repayments for 10 years, he refinances to a 20-year term. This makes his repayments a little higher than they would be on a 30-year term, but because he's not adding any new debt to the loan, his repayments won't go up – in fact, with the interest rate reduction, they should go down. This ensures he will stay on track to be debt-free faster (switching to a new 30-year loan would add 10 years to the loan).

How do I get the best deal on a home loan?

Couple with the keys to their new home. There are three things every borrower needs to look at when hunting for the perfect home loan: rates, fees and features.

The lower the rate, the better

The best home loan will always have a low interest rate. The interest rate determines your borrowing costs, and the lower the rate, the less interest you pay each month. Anyone looking for the best home loan deal needs to start with the rate.

Here's how it works. Let's say your loan amount is $500,000. You choose a variable rate with a 30-year loan term and principal-and-interest repayments (this means you repay the loan amount plus interest at the same time). Here's what your monthly repayments look like with differing interest rates:

Interest rateMonthly repayment
4.00%$2,387
3.75%$2,315
3.50%$2,245
3.25%$2,176
3.00%$2,108
2.75%$2,041

But there's more to a good home loan than the interest rate.

Avoid big fees

A home loan that hits you with multiple fees is probably going to cost you more than you realise over time. There are one-off, upfront fees such as application or settlement fees. Some home loans charge an ongoing monthly or annual fee.

Most of the time these fees seem small in comparison to your repayments, but they do add up. And because many home loans have minimal fees, it's better to avoid fees if you can.

Check a loan's comparison rate to get a better idea of the added cost of fees.

The right loan type for your strategy

It's important to get the right kind of home loan. If you're a property investor then you need an investment loan. You won't be able to apply for an owner-occupier loan.

You also need to look at your repayment type. Most borrowers go for principal-and-interest loans, where you borrow money and repay it, plus interest. This is the safest way for most borrowers.

But you can also consider an interest-only loan. With this repayment type, you only pay the interest charges at first. But you'll need to repay the full amount later. It costs you less in the short term and more in the long run. It's a popular option for investors, but some homebuyers choose it too.

Mortgage features you need

Home loans with added features can offer you more flexibility in how you manage your loan and make repayments:

  • Offset accounts can help you cut down your interest repayments.
  • Package loans let you bundle your mortgage with other financial products (like transaction accounts and credit cards) for convenience and discounts.
  • 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.

Need more help? Talk to a broker

Finding the right home loan can take a lot of time and energy. Mortgage brokers are professionals who compare home loans from a wide panel of lenders. They can find you a product that matches your financial needs and property strategy and also help you with your application.

Talk to a qualified mortgage broker today.

Compare more home loan options here

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    114 Responses

      Default Gravatar
      SueMarch 4, 2020

      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?

        Default Gravatar
        NikkiMarch 5, 2020

        Hi Sue,

        Thanks for your comment and I hope you are doing well. To answer your question about rental income being considered for borrowing power, 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.

        As a friendly reminder carefully review the terms and conditions and the product disclosure statement of the lender before applying. You may also contact your lender of choice should you have any questions about their loan requirements.

        Hope this helps and feel free to reach out to us again for further assistance.

        Best,
        Nikki

      Default Gravatar
      angelesApril 24, 2019

      hi,im looking for a low deposit home loan asap

        Avatarfinder Customer Care
        JohnApril 25, 2019Staff

        Hi Angeles,

        Thank you for reaching out to Finder.

        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! If you wish to ask assistance real time, you could chat with us via the chat button on the page.

        Cheers,
        Reggie

      Default Gravatar
      MarkJuly 1, 2018

      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?

        Avatarfinder Customer Care
        JoshuaJuly 1, 2018Staff

        Hi Mark,

        Thanks for getting in touch with Finder. I hope all is well with you. :)

        It’s nice to know that you’re planning to buy your first house at a very young age. 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.

        I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.

        Have a wonderful day!

        Cheers,
        Joshua

      Default Gravatar
      HelenNovember 23, 2017

      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 ?

        Avatarfinder Customer Care
        JudithNovember 24, 2017Staff

        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

      Default Gravatar
      trentAugust 27, 2017

      can I obtain a home loan for a farm which is 42 ha which I intend to develop it has a home on it I am looking for 400;000 and I have 170,000

        Default Gravatar
        DanielleAugust 28, 2017

        Hi Trent,

        Thank you for contacting finder. We are a comparison website and general information service, we’re more than happy to offer general advice.

        You are on the right page. You may customize, review, and compare the offers available on the table. Once you have selected one, you may proceed by clicking the green “Enquire Now” button.

        I hope this helps.

        Cheers,
        Danielle

      Default Gravatar
      patApril 17, 2017

      Looking at Low Doc Loan max borrowing on my property current value around 1.1 million I am self employed what can you offer Pat

        Avatarfinder Customer Care
        DeeApril 18, 2017Staff

        Hi Pat,

        Thanks for your question.

        You may compare low doc home loans on our website to explore your options. The maximum amount that you can borrow depends on the LVR of the home loan product you are getting.

        You may also check with a mortgage broker. A mortgage broker is a professional who compares and helps you apply for home loans on your behalf. A good mortgage broker will give you personalised service all the way through to settlement.

        Cheers,
        Anndy

      Default Gravatar
      JamilJune 26, 2016

      If I am eligible to borrow 450k home loan for 30 years, what would be minimum repayment per week?

        Avatarfinder Customer Care
        MarcJune 27, 2016Staff

        Hi Jamil,
        thanks for the question.

        You can find out what your loan repayments would be for different loan rates using our repayment calculator.

        I hope this helps,
        Marc.

      Default Gravatar
      DegsyJanuary 22, 2016

      What is the “advertised rate”? And “comparison rate”? And what is the difference?

        Avatarfinder Customer Care
        MarcJanuary 22, 2016Staff

        Hi Degsy,

        Thanks for your inquiry.

        The advertised rate is a interest rate charged for a home loan, and it’s decided by the lender. It’s used to work out what your loan repayments will be.

        The comparison rate is the advertised rate including some of the fees of the home loan (The application fee and any ongoing monthly fees for example), and is accurate for the example of a $150,000 loan over 25 years. By law, comparison rates must be included on all home loan advertisements, as it gives you a way to see what the actual cost of a home loan is because of the inclusion of these fees.

        You can find out more about it in our home loan comparison rate guide.

        I hope this helps,
        Marc

      Default Gravatar
      TonyAugust 20, 2015

      Will I be able to borrow with my Income being from Income protection payments

        Default Gravatar
        BelindaAugust 21, 2015

        Hi Tony,

        Thanks for your enquiry.

        Generally, income protection insurance is designed to help you cover expenses, such as mortgage repayments, in the event that you are unable to work due to injury or illness. Please note that your ability to service a mortgage using this benefit will depend on the type of cover that you have, but most policies provide up to 75% of your monthly income.

        As lenders have different eligibility criteria to qualify for home loans, it would be best to contact the lender directly to see whether you can borrow using the benefit from your income payments.

        Thanks,
        Belinda

      Default Gravatar
      steveMay 31, 2015

      What is the difference beteen the interest rate and the comparison rate?

        Default Gravatar
        BelindaJune 1, 2015

        Hi Steve,

        Thanks for your enquiry.

        The interest rate is the percentage of your home loan that you’ll end up paying in addition to the original loan amount.

        Whereas the comparison rate is a percentage amount calculated by adding together the interest rate plus any additional fees or charges associated with the loan. The figure is then converted into a percentage to reflect the true cost of the home loan.

        If you compare home loans based on the comparison rate, you’ll get a more accurate idea of the true cost of the loan.

        I hope this clarifies things for you.

        Thanks,
        Belinda