Compare owner occupier home loans

Owner occupier home loans offer lower rates than investor loans. Find out how they work and how to compare them here.

If you’re looking for a home loan as an owner occupier, lenders offer a broad variety of options. Check out the table below to compare the loans available to owner occupiers.

What is an owner occupier loan?

As the name suggests, an owner occupier home loan is a loan for a property you intend to live in. A home loan is a loan offered by a lender for the purpose of purchasing a residential property. Owner occupier home loans are specific to borrowers who wish to make the property they’re buying their primary place of residence. Owner occupier home loans generally carry a lower interest rate than loans offered to investors.

Compare owner occupier loans below

You can sort owner occupier loans in the table below by clicking the 'Advanced Search' button in the table and selecting 'Owner Occupier' from the loan purpose dropdown.

Rates last updated May 22nd, 2018
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Loan purpose
Offset account
Loan type
Your filter criteria do not match any product
Name Product Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment Short Description
3.88%
4.89%
$0
$395 p.a.
95%
Low deposit home loan. Enjoy flexible repayment options while paying limited fees.
3.49%
4.49%
$0
$395 p.a.
90%
Loans over $150k get a discount off an already low fixed rate. Available for NSW, Qld and ACT residents only.
4.09%
4.11%
$0
$0 p.a.
80%
This variable rate loan keeps the features simple and fees low. This loan is offered by a 100% online lender.
3.64%
4.03%
$0
$395 p.a.
80%
New borrowers or refinancers from another lender get a discounted rate with this package loan.
3.99%
4.86%
$0
$0 p.a.
80%
Access a fee-free 100% offset account and pay no application or ongoing fees.
3.69%
3.73%
$600
$0 p.a.
95%
Variable rate home loan from one of the big 4 banks. Available with just a 5% deposit.
3.89%
4.87%
$0
$0 p.a.
90%
Borrow up to 90% of the value of the property you're buying and pay no application or ongoing fees.
4.39%
4.78%
$0
$395 p.a.
95%
A low deposit package home loan. Combine your loan to get discounts on your interest rate and other NAB financial products.
3.94%
4.79%
$0
$0 p.a.
95%
A low 3-year fixed rate with the option to split your loan for free.
4.59%
5.01%
$0
$395 p.a.
95%
A competitive fixed rate loan with flexible features. Available with a 5% deposit.
3.89%
4.97%
$0
$395 p.a.
95%
Get discounts on a range of Commonwealth Bank products and enjoy the option of fee-free extra repayments during the fixed term.
3.89%
4.96%
$0
$395 p.a.
95%
Refinancers can get $1,500 cashback. Conditions apply. Package your home loan with a Qantas rewards earning Amplify credit card.
3.89%
4.88%
$0
$395 p.a.
95%
Refinance from your existing loan and get a $1,250 rebate. Terms and conditions apply. Plus get discounts on a range of Westpac products.

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How do loans for owner occupiers differ?

Owner occupier home loans differ from other home loans in that they are geared specifically toward people looking to live in the property they’re purchasing. This is in contrast to property investors, who are purchasing a property either to find tenants to generate rental income, or to sell for a capital gain. Lenders offer a specific type of home loan to investors. The Australian Prudential Regulation Authority (APRA), the body that monitors and regulates banks in Australia, has placed restrictions on lending to investors. As mentioned above, lenders often offer a lower interest rate to owner occupiers than investors, as investors are seen as riskier borrowers.

Look at how banks have cracked down on investors

Can I get an investment loan as an owner occupier, or an owner occupier loan as an investor?

The type of loan that’s appropriate for you depends on your circumstances, and what you intend to do with the property you’re purchasing. Therefore, if you intend to live in the property you’re purchasing you’ll need to get a loan tailored to owner occupiers. Likewise, if you don’t plan on living in the property and instead want to use it to generate rental income, you’ll have to get an investor loan.

Just because you start your home loan journey as an owner occupier, though, doesn’t mean you can’t change your mind. It just means you’ll have to make your lender aware of your change in circumstances. If you decide to move out of your property and treat it as an investment, you’ll need to contact your lender so they can change the terms of your loan accordingly.

What loans are available to owner occupiers?

Lenders offer a wide variety of home loans to owner occupiers, including:

Variable rate home loans

A variable rate home loan is one where the interest rate can change depending on a variety of factors. A few of these factors include the Reserve Bank’s official cash rate, the cost of overseas funding and the lender’s appetite for home loans. There are various reasons variable rates might change.

Variable rates can have benefits and drawbacks. They often come with the flexibility of making extra repayments, and can have money-saving features such as offset accounts and redraw facilities. But if interest rates rise, you could also find your regular repayments getting more expensive.

Fixed rate home loans

A fixed rate home loan is a home loan where the interest rate is locked in for a predetermined period of time, usually between one and five years. This gives you the peace of mind of a steady repayment that won’t change, regardless of the Reserve Bank’s interest rate decisions or external funding pressures.

The drawback of fixed rate home loans is that they often don’t come with the added features available with variable rate products. They are also unlikely to let you make additional repayments, and can carry heavy penalties for doing so. Also, if variable rates do fall, you can find yourself locked into a less competitive home loan rate.

Low doc home loans

Low documentation, or low doc, home loans are geared specifically toward self-employed borrowers. If you don’t have PAYG statements to prove your income, a low doc loan might be the best option for you. These loans allow you to present alternative forms of documentation to prove your income and ability to service the loan.

Specialist home loans

Specialist home loans are for people who might have had some negative marks on their credit file. They can be particularly helpful to borrowers who have had defaults or missed bill payments. Specialist lenders will look at the extenuating circumstances surrounding your defaults, and assess your loan on a much more personalised basis. These loans can, however, carry higher interest rates than normal owner occupier home loans.

What should I keep in mind when comparing owner occupier home loans?

There are a number of things you’ll need to think about when comparing owner occupier home loans:

  • Am I an owner occupier? First you’ll need to decide if you’re purchasing a property to live in, or for the purposes of investment. If you’re buying as an investor, you’ll need a home loan specific to your purposes.
  • How much can I afford? Look at your budget and make an honest assessment about the size of repayment you can afford. You can use our home loan borrowing calculator.
  • How big a deposit have I saved? Most lenders prefer you to have a deposit at least 20% the value of the property you’re purchasing, though some lenders will allow you to borrow up to 95% of the property’s value.
  • What are the fees? A home loan’s interest rate isn’t the only indication of how expensive it will be. Some loans carry annual fees that can quickly add up. Pay attention to these fees when deciding on a home loan. You can get a good idea of the true expense of a home loan by paying attention to the comparison rate, which takes into account the loan’s rate and all its fees and expresses it as a percentage.
  • Is the loan suited to my needs? You’ll want to ensure the loan has the features and flexibility that suit your situation.
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Home Loan Offers

Important Information*
NAB Choice Package Home Loan - 2 Year Fixed (Owner Occupier P&I) First Home Buyer Special

Start your home buying journey with 2 years of fixed repayments and a reasonable rate from a big 4 bank. Available with a 10% deposit.

UBank UHomeLoan Variable Rate - Discount Offer for Owner Occupied Variable P&I Rate — borrowing $700,000 or more

Pay no application or ongoing fees and get access to a redraw facility and flexible repayment schedule. Refinance to a UBank loan and you could get $1,000 in your USaver account (offer conditions apply).

Greater Bank Ultimate Home Loan - Discounted 1 Year Fixed LVR ≤90% ($150K+ Owner Occupier)

Loans over $150k get a discount off an already low fixed rate. Available for NSW, Qld and ACT residents only.

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

New borrowers or refinancers from another lender get a discounted rate with this package loan.

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2 Responses

  1. Default Gravatar
    SimoneMarch 22, 2018

    I purchased my unit outright and I really need a small loan for renovations. There is position position position with whale watching to rainbow beach..However it needs kichen & bathrom to be gutted, paint, tiles and so on. I dont pay rent and I am excited to see my first flip. Im really interested to see or read your opinion! I am so keen to begin. I also don’t want to look at retail prices. I know I’m going to do well with my first reno I just need somone to back me up..
    Theres no harm in asking.
    Simone Harris….thanks

    • Staff
      NikkiMarch 26, 2018Staff

      Hi Simone!

      Thanks for your questions and for contacting finder.

      Congratulations on this project! I’m sure you’ll do well.

      Your loan would depend on the lender you go for. Ensure that you have all the eligibility criteria needed to apply and be approved of the loan as well as a good credit standing. You may check your credit score here.

      Good luck and best regards,

      Nikki

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