Mortgage Comparison

Mortgage Comparison – Compare Mortgages from Australian Lenders

Rates and Fees verified correct on March 27th, 2017

Own your own home sooner with a competitive mortgage

The Australian mortgage and home loan market is highly competitive. When you begin to research and compare, it may be a surprise to find out how many home loan lenders are in the market and how their terms and conditions could differ.

The Australian mortgage and home loan market is highly competitive. When you begin to research and compare, it may be a surprise to find out how many home loan lenders are in the market and how their terms and conditions could differ. For example, a lender might offer a great honeymoon interest rate but you'll often find that you end up paying a rate that's higher than anything on the market. Basically, one year of a very low rate definitely doesn't make up for 30 years paying a higher rate than everyone else and it will definitely cost you a lot more in the long run.

Basically, you have to decide whether it's more important to you to pay off your mortgage as quickly as possible, which is more achievable when you don't have a bunch of extra costs to deal with, or you prefer to have these features, which might make life easier for you now, despite the fact that it could take you a few extra years to pay off your mortgage.

Compare mortgages

Rates last updated March 27th, 2017.

Bank Australia Basic Home Loan - Variable (Owner Occupier)

Interest rate increased by 0.08%

February 20th, 2017

State Custodians Line Of Credit Loan - LVR 80% to 90% (Owner Occupier)

Interest rate increased by 0.10%

February 27th, 2017

Newcastle Permanent Building Society Premium Plus Package Home Loan - New Customer Offer ($150,000+ Owner Occupier)

Interest rate increases by 0.10%

February 27th, 2017

View latest updates

Jodie Humphries Jodie
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Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment
HSBC Home Value Loan - Resident Owner Occupier only
Enjoy the low variable rate with $0 ongoing fee and borrow up to 90% LVR.
3.75% 3.77% $0 $0 p.a. 90% Go to site More info
NAB Choice Package Home Loan - 2 Year Fixed (Owner Occupier)
A fixed rate package loan with flexible repayments options.
3.98% 4.97% $0 $395 p.a. 95% Go to site More info
State Custodians Standard Variable - LVR 80% (Owner Occupier)
Special Owner Occupier Rate. Free Offset Account.
3.69% 4.03% $0 $299 p.a. 80% Go to site More info
CUA Fresh Start Basic Variable Home Loan - Owner Occupier
A basic mortgage with flexible repayments options.
3.89% 3.94% $600 $0 p.a. 90% Go to site More info
Beyond Bank Low Rate Special Home Loan
A special low variable rate for Owner Occupier with 100% offset account and no application or ongoing fees.
3.83% 3.83% $0 $0 p.a. 70% Go to site More info
ME Flexible Home Loan With Member Package - LVR <=80% $400k up to $699,999 (Owner Occupier)
Enjoy a discount of a competitive interest rate and 100% offset account.
3.89% 4.30% $0 $395 p.a. 80% Go to site More info
State Custodians Standard Variable - LVR 90% (Owner Occupier)
A special rate for owner occupiers with free 100% offset account and no application fee.
3.79% 4.12% $0 $299 p.a. 90% Go to site More info
Switzer Home Loan
No upfront or ongoing fees and a competitive variable rate for owner occupiers.
3.89% 3.89% $0 $0 p.a. 90% Go to site More info
loans.com.au Essentials - Variable (Owner Occupier, P&I)
A low-interest rate loan suited for purchases and refinances with no application or ongoing fees.
3.59% 3.61% $0 $0 p.a. 80% Go to site More info
Newcastle Permanent Building Society Premium Plus Package Home Loan - New Customer Offer ($150,000+ Owner Occupier)
Apply for a new owner occupier loan or refinance from another lender and receive this discounted rate.
3.84% 4.22% $0 $395 p.a. 95% Go to site More info
State Custodians Line Of Credit Loan - LVR 80% to 90% (Owner Occupier)
Borrow up to 90% property value and pay no application fee.
3.79% 4.12% $0 $299 p.a. 90% Go to site More info
loans.com.au Offset Variable - Up to 80% LVR (Owner Occupier P&I)
Take advantage a 100% offset account along with no annual or application fee.
3.67% 3.69% $0 $0 p.a. 80% Go to site More info
IMB Budget Home Loan - LVR <=90% (Owner Occupier)
A competitive budget rate without any unwanted bells and whistles.
3.87% 3.92% $445 $0 p.a. 90% Go to site More info
3.79% 3.81% $0 $0 p.a. 95% Go to site More info
Bank Australia Basic Home Loan - Variable (Owner Occupier)
A competitive variable that allows borrowers to borrow a minimum of $100,000 with a $0 ongoing fee.
3.79% 3.83% $595 $0 p.a. 80% Go to site More info
Auswide Bank Home Loan Plus with Freedom Package - Special Package Discount LVR <= 90% (Owner Occupier) P&I
A high maximum LVR home loan with redraw facility and additional payments.
3.79% 4.18% $0 $395 p.a. 90% Go to site More info
State Custodians Breathe Easy - LVR 80% (Owner Occupier)
No application or monthly fees. Includes offset feature.
3.82% 3.85% $0 $0 p.a. 80% Go to site More info
Newcastle Permanent Building Society Fixed Rate Home Loan - 2 Year Fixed (Owner Occupier Special Rate)
A limited time 2 year fixed rate for owner occupiers. Conditions apply.
3.99% 4.81% $0 $0 p.a. 95% Go to site More info
CUA Fixed Rate Home Loan - 2 Year Fixed (Owner Occupier)
A fixed home loan with no ongoing fees and flexible repayments options.
3.84% 4.59% $600 $0 p.a. 95% Go to site More info
Australian Unity Kick Starter Home Loan
$0 ongoing service fees, maximum 80% LVR and a linked transaction account.
3.79% 3.82% $600 $0 p.a. 80% Go to site More info
Newcastle Permanent Building Society Fixed Rate Home Loan - 3 Year Fixed (Owner Occupier Special Rate)
A limited time fixed rate home loan with extra repayment abilities. Conditions apply.
4.09% 4.76% $0 $0 p.a. 95% Go to site More info
Bank Australia Premium Home Loan Package - 2 Year Fixed (Owner Occupier) LVR < 80%
A discounted 2 year fixed rate loan with high maximum LVR and no application fee.
3.69% 4.31% $595 $350 p.a. 80% Go to site More info
ME Basic Home Loan - LVR <=80% Owner Occupier
A low variable rate loan with no application or ongoing fees.
4.09% 4.11% $0 $0 p.a. 80% Go to site More info
Newcastle Permanent Building Society Fixed Rate Home Loan - 2 Years Fixed (Standard Rate)
Enjoy a low interest rate and borrow up to 95% (with LMI) of your home value.
4.59% 4.92% $0 $0 p.a. 95% Go to site More info
loans.com.au Essentials - Smart Loan Package P&I
This competitive rate is only available if you package your investment loan with your owner occupier loan.
3.59% 3.61% $0 $0 p.a. 80% Go to site More info
Bank Australia Premium Home Loan Package - LVR<=80% $700k + (Owner Occupier)
Enjoy the discounted interest rate with redraw facility and no ongoing fees.
3.82% 4.17% $595 $350 p.a. 80% Go to site More info
Newcastle Permanent Building Society Fixed Rate Home Loan - 1 Year Fixed (Standard Rate)
Get a short term fixed rate for that investment property with no application or ongoing fees.
4.59% 4.95% $0 $0 p.a. 95% Go to site More info
ME Flexible Home Loan Fixed - 3 Year Fixed Rate (Owner Occupier)
A competitive 3 year fixed rate with a redraw facility and split loan options, plus no application fee.
4.09% 4.80% $0 $0 p.a. 95% Go to site More info
Australian Unity Health, Wealth and Happiness Package - (Owner Occupier)
Get a 0.60% discount on your rate, a 100% offset account and no ongoing fees.
4.05% 4.08% $600 $0 p.a. 90% Go to site More info
NAB Base Variable Rate Home Loan - Owner Occupier (P&I)
A competitive no frills home loan with no application fees for a limited time.
4.17% 4.21% $600 $0 p.a. 95% Go to site More info
Australian Unity Wealth Builder Investor Package Home Loan - Variable
An investment loan with no ongoing fees and borrow up to 90% LVR.
4.19% 4.22% $600 $0 p.a. 90% Go to site More info
Newcastle Permanent Building Society Fixed Rate Home Loan - 3 Years Fixed (Standard Rate)
Split your loan for free with one of the lowest fixed home loan rates.
4.69% 4.92% $0 $0 p.a. 95% Go to site More info
NAB Choice Package Variable Rate - $250k to $749,999 P&I (Owner Occupier)
A great variable package from NAB which includes offset and redraw features. No application fee.
4.47% 4.86% $0 $395 p.a. 95% Go to site More info
IMB Essential Home Loan - LVR <=90% (Owner Occupier)
Get a discount on your rate and flexible repayment options with this loan.
4.09% 4.09% $0 $0 p.a. 90% Go to site More info
NAB Choice Package Home Loan - 5 Year Fixed (Owner Occupier)
A competitive loan with flexible features.
4.59% 5.05% $0 $395 p.a. 95% Go to site More info
ANZ Simplicity PLUS Home Loan - Special Offer (Owner Occupier)
Enjoy a home loan with no aplication fee or ongoing fee.
4.03% 4.07% $0 $0 p.a. 95% Enquire now
3.88% 3.89% $600 $0 p.a. 90% Enquire now
Westpac Flexi First Option Home Loan - 3 Years Introductory Special Offer (New Owner Occupier, P&I)
A limited time deal for new owner occupiers. Advertised rate includes 1.03%p.a. discount for the first two years.
4.02% 4.40% $0 $0 p.a. 95% Enquire now
St.George Basic Home Loan - Promotional Rate (Owner Occupier, P&I)
A no frills loan with a competitive rate and a maximum LVR of 95%.
4.08% 4.09% $0 $0 p.a. 95% Enquire now
Commonwealth Bank Wealth Package Fixed Home Loan - 2 Year Fixed (Owner Occupier) P&I
A package home loan with fee free extra repayments available during the fixed term.
3.99% 4.99% $0 $395 p.a. 95% Enquire now
St.George Fixed Rate Advantage Package -  2 Year Fixed Rate (Owner Occupier, P&I)
A discounted package rate for owner occupiers with the ability to package a Qantas rewards earning Amplify credit card. $1,500 cash back available for refinancers, conditions apply.
3.99% 5.04% $0 $395 p.a. 95% Enquire now
Westpac Fixed Options Home Loan Premier Advantage Package - 2 Years, P&I
A low interest rate home loan and competitive two year fixed rate.
3.99% 5.10% $0 $395 p.a. 95% Enquire now

Budget first, enquire later

You might be tempted to run off and start enquiring about mortgages right away. However, the first thing you need to do is draw up a budget to work out exactly how much money you can allocate to pay for your mortgage. If you aren't aware of this figure, you could end up accepting a home loan with a payment scheme you will be unable to sustain, even if you think you'll be able to do it by cutting back in different areas.

Are you within your budget?

One of the easiest and most important actions you can take to secure your financial future and not have to worry about making mortgage payments is to draw up an objective budget, which will allow you to prioritise your spending.

You should draw up a budget on paper as it will give you a better picture of what your financial situation is. The good news is that it isn't hard to do. All you have to do is make note of all your earnings after tax as well as those of your partner. Then, check what your monthly spending is, which could include fixed costs that need to be covered including food, rent, power, water, credit cards and so on as well as other types of expenses like entertainment, fuel, parking and savings.

So, the money you spend now on rent as well as savings or entertainment or both could be allocated towards paying your mortgage, as well as any disposable income left after you've deducted all your expenses. However, to be on the safe side, make sure you give yourself a buffer of at least 3%, in case the cost of your mortgage goes up due to interest rates rising. The important thing is that once you've completed your budget you will know what your financial situation is and will have a better idea of what to look for when studying mortgage comparison sites.

Different types of home loans

Once you start shopping around for a home loan, you will discover that there are different types of mortgages available. Before you compare them, it's important you are aware of the most common types of loans, which will enable you to make an informed decision.

A variable interest rate loan features an interest rate that can rise or fall depending on how well the country's economy is performing. This is because interest rates are linked to the interest rates set by the Reserve Bank of Australia and lenders will increase the rate they charge when the RBA increases the rate and vice versa.

Variable rate loans are available for a set period of time and come with a set regular repayment, which can vary according to the interest rates, as previously mentioned.

A basic variable loan usually features a lower rate than a standard loan because it is less flexible than the standard version in terms of making additional repayments, redraw facilities and paying off the loan early.

A fixed rate home loan is one where the interest rate is fixed at a certain level for a limited period of time, which usually varies between one and five years, but can be longer depending on the lender. Once the fixed rate period is up, you can either switch over to a variable rate to take out a new fixed term home loan at the rate valid at the time.

Fixed rate home loans generally come with a slightly higher rate than variable rate loans because you are locking in the interest rate. It is usually a good idea to get a fixed rate home loan when you think interest rates have reached a low and are set to rise in the near future.

Split loans combine both fixed rate and variable rate loans in a single loan. This allows you to fix a portion of the loan while the rest remains subject to variable rates. The advantage of a split loan is that it offers a certain level of flexibility but it still allows you to hedge your bets and budget more easily since you know how much at least a portion of your repayment will be over the next five years or so.

Package loans allow you to group all of your banking together and lenders will often offer a discount on your interest rate in the vicinity of 0.7% from their standard rates if you take this option. It's a very flexible approach to financial management but an annual fee does apply for the service, so make sure your savings are worth the annual fee.

Line of credit home loans have become very popular because they are highly flexible. A line of credit works much like a credit card except for the fact that the property being purchased will act as security and the amount of money you can borrow will be determined by the value of the property. This type of home loan doesn't require a set repayment every month like a standard mortgage does. You will receive a credit limit from your lender and then you can use it for purchases, just like you would a credit card. While having access to credit at all times might be useful, there is the temptation to put off paying the loan, which can cause problems later on down the line.

Low-doc home loans are ideal for people who are self-employed and want to purchase a home. Someone who is self-employed has different types of paperwork they can show a lender compared to someone who is in regular employment. A low-doc loan takes this into account and some of the requirements are not as strict, though the loan-to-value ratio is also generally lower than with a standard home loan and the interest rate can be a fair bit higher.

If you've had credit misadventures in the past, it could make applying for a mortgage or even refinancing troublesome. However, there are some lenders out there who will still work to get you a home loan. It is important to keep in mind that the interest rates may be higher than other loans.

Other factors to consider in your comparison

Besides the type of loan, you also should compare interest rates, of course and fees. Both of these can really impact your financial situation because making the wrong decision can lead to you spending a lot more money than you need to.

  • Interest Rates

    The interest rate is the biggest cost associated with your loan, which is why you really need to shop around to find the best rate which matches your loan type. You should speak to at least three different lenders, if not more, to ensure you get the best possible quote for your mortgage. However, don't cross-compare rates or you won't get a clear picture. In other words, don't compare the rate on a variable rate home loan with the rate on a line of credit because the terms and conditions are different, which means interest rates will be different. Instead, make sure you compare rates across the board for the same type of loan.

  • Don't forget the fees

    When shopping for a home loan, most people tend to focus on the interest rate and while it is an essential component that needs to be evaluated, it's definitely worth checking out what other fees you might be charged. So, you need to look at things like annual fees, exit penalties, mortgage insurance, ongoing account maintenance fees, valuation fees, application fees and more.

    Look at these fees very carefully because they can have a significant impact on your loan and you could end up paying thousands of dollars in fees that you could have avoided. For example, some home loans will charge a fortune if you want close out your loan early to refinance, which would nullify any benefits you might gain from a new loan with a lower interest.

What you can do to get the best possible rate

There are certain things you can do to make sure you get the best possible rate on your home loan. As the saying goes, nothing is free, so if you want to get an attractive rate then you are going to have to fulfil the following conditions:

consider your comparison

Most lenders will require proof that you are financially responsible and this means that you are going to have to provide proof that you have some savings. By putting your savings up as a down payment, you are also taking on some of the risk, which makes most lenders more comfortable about giving you a loan with a more attractive rate. This is because they know people are less likely to default on a loan where they put some money up towards purchasing the property.

There are cases in which you can get a loan without a down payment but nowadays it is becoming increasingly rare. Additionally, these types of loans, when you can get one, are extremely expensive and generally not worth it in the long-run.

Financial responsibility comes in again but this time it's by proving that you have been good at managing your credit by paying off your debts on time. Thus, a person with a poor credit history is not going to get a low interest loan because they pose too much of a risk, whereas people with good credit are more likely to get an attractive rate.

You need to do your research and find out which type of loan is best suited to your needs and what the best type of property is for you. If you aren't aware of your needs, you can't expect another person to tell you what you need. Once you know exactly what you are looking for, it's much easier to find a home loan with an attractive rate.

Seek advice

There are plenty of resources available online to make your search for the most attractive home loan quite easy. There are various sites that conduct research and offer in-depth comparisons of all the products available on the home loan market, making it easy for you to find the best option for your personal situation.

However, you should also consider talking to a mortgage broker. While a broker won't be able to offer you all the products on the market, he or she can offer you advice and guidance on your application, which can often prove invaluable, especially since you don't have to pay anything for their services.

Likewise, you should consider talking to your current bank because they might be able to put together a good offer for you, especially if you've been with them for a while.

Take your time and do the research

do research

You'll find that once you start checking out mortgage comparison sites, lenders offer different features with their mortgages. While certain features are useful from a financial viewpoint and offer a great degree of convenience, they generally aren't free. So, you have to consider whether or not it's worth paying extra for these features for the next few decades.

If you take the time to do your research and study all the home loan offers available on the market, you will find it much easier to find the ideal mortgage for your particular situation. However, if you are finding it difficult to raise the cash to put down a sufficiently large deposit to suit a lender, you have the option of purchasing your home using a Rent to Buy scheme. This type of program is great for people with a relatively low income. The way it works is that you enter into a contract with a landlord according to which you commit to paying slightly more than the rent every week over a certain timeframe. The additional money is used to create a deposit and once the set period is up, you start purchasing the property.

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Related Posts

HSBC Home Value Loan - Resident Owner Occupier only

Enjoy the low variable rate with $0 ongoing fee and borrow up to 90% LVR.

loans.com.au Essentials - Variable (Owner Occupier, P&I)

A competitive interest rate home loan with interest only options. Interest rate 3.59%p.a.
comp rate of 3.61%p.a.

Newcastle Permanent Building Society Premium Plus Package Home Loan - New Customer Offer ($150,000+ Owner Occupier)

Apply for a new owner occupier loan or refinance from another lender and receive this discounted rate.

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