Choosing the right home loan for you
Whether you're an owner-occupier or investor, or looking for a variable or fixed-rate loan, we'll find a competitive interest rates for your home loan.
5.79% p.a Fixed 3 years (comparison rate 6.34% p.a)
5.79% p.a Fixed 2 years (comparison rate 6.39% p.a)
5.89% p.a Fixed 4 years (comparison rate 6.33% p.a)
5.94% p.a Fixed 3 years (comparison rate 6.53% p.a)
5.94% p.a Fixed 2 years (comparison rate 6.58% p.a)
One size doesn't fit all is as true for most things in life as it is for home loans. While you may have been with your bank since your first savings account, that doesn't mean their home loans will be the right fit for you. It doesn't matter if you're buying your first home, a new home, refinancing or just browsing, it always helps to see what's out there. Comparing home loans makes sure you're getting the best loan for your circ*mstances.
There's no set rule for how often you need to refinance, but it's a good idea to take a look every year or two – even if you're locked into a fixed-term home loan, sometimes the savings can be more than the exit fees.
Benefits of comparing home loans
Choose between
- Lower interest rates
- Cheaper payments
- More flexible options
- Loans with more features like redraw and offset accounts
- Shorter or longer loan term
It's easy to compare home loans with our online comparison tool. Here's how to compare home loans in a few easy steps.
- Let us know if you're looking to buy a home or refinance
- Tell us if you're an owner-occupier or an investor
- Enter how much the property is worth and how big your loan needs to be
- Decide if you want a principal and interest loan or an interest only loan
- Press “search” to see the loans we think might suit you
- Narrow down your results by sorting or filtering to get the features you want
- Find a loan that you think might work for you and speak to a broker
There might be different offers and loans available depending on this.
Investors often have different interest rates available compared to owner-occupiers.
These two details will work out your loan-to-value ratio (LVR). Certain loans are only available in your LVR is under a specific amount. Some lenders will also only loan a minimum or maximum amount so it's important to look at the total loan also.
A principal and interest loan is one where your repayments go towards paying back the loan amount (the principal) as well as the interest on the loan. An interest only loan is one where your repayments cover the interest only. Read more about deciding which type of home loan is right for you.
Press search on our comparison tool and we'll search our 1407 home loans to find a list that we think might suit you. You can see what type of loan it is, what LVR it's available for, the interest rate, comparison rate, roughly how much your repayments could be and some of the top features of the loan.
Use the sort functionality to prioritise what you see first: lowest interest rate, lowest comparison rate, or you can see the lenders in alphabetical order.
You can also filter to find the type of loan you want including choosing between a variable or fixed loan, how often you want to make repayments, specific lenders. You can also choose specific features you want your loan to have including redraw facility, construction loan, line of credit, offset account, low doc, no upfront fees or ongoing fees, the ability to make extra repayments or a split loan facility.
Once you've found a loan that you think will work, you can see the full details of the loan. When you're ready, press “Speak to a broker” to get the process started. We'll connect you with a local broker who can help assess your circ*mstances in more detail and maybe provide you with further options that will help you get the best option for your circ*mstances.
If you're new to home loans, then choosing a mortgage may seem relatively straight forward but once you dive into things, the amount of choices can seem overwhelming so it's good to get an understanding of what you want.
You'll most likely need to decide between fixed or variable interest rates, as well as choosing between a principal and interest loan or an interest only loan. Once you've made that decision, you can look at what other features you want.
Fixed or variable interest rate
If you're wondering if fixed or variable interest rates are best, then unfortunately there's no right answer. Whichever you choose you're taking a guess as to what will happen to interest rates over the next few years. If you think interest rates will go up, then you might want to choose a fixed interest rate, but if you think interest rates will drop then you variable might be better.
Learn more about the differences between fixed and variable interest rate loans.
Principal and interest loan or interest only loan
You'll also need to decide if you want a principal and interest loan or an interest only loan.
Principal and interest loans are the most popular choice as you will be paying back the loan which can help you to build equity in your property.
For interest only loans, because you're only paying the interest this usually mean lower repayments for a short period so they can be useful if you're saving for renovations or if you need to pay off debts with a higher interest rate. These loans are also popular among investors.
Offset accounts, redraw facilities and other features
Take the time to think about what features you need.
Offset accounts are great because any savings you put in these accounts “offset” against the amount you still owe on your home loan. However not all loans, particularly fixed-rate loans, have offset accounts, or if they do they have a low offset percentage (meaning only a percentage of what's in your offset account is “offset” against your remaining loan). Make sure you'll have enough savings in your offset to make this worthwhile before you disregard a loan that doesn't have an offset account.
Redraw accounts are similar except you make additional payments to decrease the loan amount. You can then apply to redraw these additional payments later. Redraw accounts may have limits on how much you can withdraw. Read more about the differences between offset and redraw accounts.
Other features you might want in your home loan can include low doc loans which are popular with people who are self employed, construction loans, the ability to make additional repayments, or choose to avoid on-going or upfront fees.
When you're comparing home loans there are a few things to consider even once you've decided on the type of loan and what features you want.
Interest rates
In its simplest form, interest is the cost of borrowing money and that cost is calculated as a percentage of the amount you have borrowed. This percentage is known as an interest rate.
It's usually shown as a yearly percentage.
You might think that the cheapest loan will have the cheapest interest rate, and while it's a good starting point it's not always that simple.
Comparison rates
Comparison rates are a way of comparing mortgage interest rates once all the other fees are taken into consideration.
A comparison rate is calculated based on
- A loan amount of $150,000
- A 25-year loan term
- A loan with principal and interest repayments
While this is a much more transparent way to compare loans, it's still not perfect (the average mortgage in Australia is a lot more than $150,000) and your individual circ*mstances can change the outcome quite a bit.
Repayment amounts
While interest rates are important to compare, it's good to put this number into a repayment amount so you can see how it will affect your day-to-day budget.
If you have a variable loan, there's a chance that the repayment amount could increase if interest rates go up so it's important to take this into consideration.
Upfront and on-going fees
On top of interest repayments, it's important to take both upfront and on-going fees into account. On-going fees can be monthly, yearly or both. While the comparison rate does do some of the leg work here, it pays to break down the fees for your specific needs.
How much will be in your offset or redraw account
If you plan on topping up your offset or redraw account immediately after settling your loan, then you should take this into account with how it will affect your repayments and how much interest you're being charged. You should also take into account what will happen if you keep adding savings to these accounts. If your savings are high enough, the benefits of a redraw on a loan with a higher interest rate could outweigh the benefits of a loan with a lower interest rate but without one of these accounts.
Make sure your LVR matches the loan
Most loans have a maximum LVR amount. Usually higher interest rates apply if you're borrowing a larger percentage of the property's value.
If you're buying a new home, this is based on your deposit. If you're refinancing, this is based on your home's value compared to your remaining loan amount.
Make sure the amount of money you need to borrow is eligible for the loan
Most loans will have a maximum and minimum amount of money they will loan. Comparison tools, like the one above, should be able to take this into consideration for you.
Check the eligibility criteria
When you're assessed for a loan, a lender will take into account your income, savings, expenses and more but there are also more simple criteria including which state you are buying in.
Top interest rates available now
Whether you're an owner-occupier or investor, or looking for a variable or fixed-rate loan, we'll find a competitive interest rates for your home loan.
Owner-occupier, Variable, Principal & interest, <80% LVR
Interest rate
6.04% p.a. *
Comparison rate
6.06% p.a. ^
Redraw facility
Offset account
Upfront fees
Yes
Ongoing fees
No
See loan details
Investor, Variable, Principal & interest, <80% LVR
Interest rate
6.29% p.a. *
Comparison rate
6.31% p.a. ^
Redraw facility
Offset account
Upfront fees
Yes
Ongoing fees
No
See loan details
Owner-occupier, Fixed 3 years, Principal & interest, <90% LVR
Interest rate
5.79% p.a. *
Comparison rate
6.34% p.a. ^
Redraw facility
Offset account
Upfront fees
Yes
Ongoing fees
Yes
See loan details
Latest interest rates news
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We compare home loans from 31 lenders
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Frequently asked questions
Home loans, also known as mortgages, are loans from a bank or other lender that allow you to buy a house. You pay an agreed amount upfront as a deposit (traditionally this has been a 20% deposit but there are ways to buy a house with a smaller deposit).
Like any loan, you'll then pay back the loan every month over several years, however unlike any other loan, the loan term is usually between 20-30 years and the interest rates are lower.
Most home loans calculate interest daily but the interest rate on your loan is the yearly amount you pay in interest.
This means the most basic way to calculate interest on your home loan is to multiply the balance of your loan by your interest rate, and then divide by 365 days (1 year). This is your daily interest. If you then multiply this by the number of days in a month, that's your monthly interest.
Find out more aboutinterest and interest rates for home loans.
There are several types of home loans in Australia based on your needs and the type of property you’re buying.
The main types are
- Fixed or variable home loans
- Interest only loans
- Principal and interest loans
- Construction loans
- Low doc loans
Read more aboutdifferent types of home loans.
Borrowers assess how much you can borrow based on what you currently earn and how much you spend, as well as your history of paying back other loans and bills. Access to credit is also considered because you also need to be able to meet these potential repayments.
Estimatehow much you can borrow for a home, or read more abouthow borrowing power is calculated.
Comparison rate is a standard way to compare home loans – but aren't tailored to reflect the amount or length of your loan.
Comparison rate is are generally calculated based on
- $150,000 loan
- 25-year repayment term
- Principal and interest repayments
- Include any additional fees over this time
Learn more about comparison rates.
If your circ*mstances have changed or you think you can get a better deal, then it's time to look at refinancing your home loan. Refinancing is the process of ending your current home loan and starting a new one, usually with different terms. This could be a longer or shorter loan term, a higher or lower loan amount, a different interest or different loan features and facilities. You can choose a new lender or stay with your current one.
Learn more aboutrefinancing.
