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Compare the Best Home Loan Rates in Australia

  • Compare home loans with rates as low as 5.48% (comparison rate^ 6.24%)
  • Find your best home loan interest rates

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Home loans with Money Matchmaker

Just some of the 100+ lenders we compare

Compare home loans rates from 5.48% (comparison rate^ 6.24%)

The table below shows a selection of the lowest-rate variable and fixed owner-occupied home loans (based on principal & interest repayments) available directly from the lender. The table is sorted by lowest interest rate.

Australian Mutual Bank - Owner Occupied Fixed

Interest rate

5.48% p.a. fixed for 3 years

Comparison rate^

6.24% p.a.

Features
  • No monthly or annual fees
  • Additional repayments up to $20,000 allowed
Maximum loan-to-value ratio (LVR)

80%

Australian Mutual Bank - First Home Owner Occupied Special

Interest rate

5.53% p.a. fixed for 2 years (special offer)

Comparison rate^

6.30% p.a.

Features
  • Redraw
  • Application & valuation fee waived
  • Guarantor option available
Maximum loan-to-value ratio (LVR)

80%

Police Bank - First Home Loan

Interest rate

5.59% p.a. fixed for 3 years

Comparison rate^

5.85% p.a.

Features
  • Available under the First Home Guarantee (FHBG)
Maximum loan-to-value ratio (LVR)

80-95%

Australian Mutual Bank - Owner Occupied Fixed

Interest rate

5.63% p.a. fixed for 2 or 5 years

Comparison rate^

6.35% p.a. (2-year fixed)

6.16% p.a. (5-year fixed)

Features
  • No monthly or annual fees
  • Additional repayments up to $20,000 allowed
Maximum loan-to-value ratio (LVR)

80%

LCU - Savvy First Home Buyer Loan Variable

Interest rate

5.69% p.a. variable (3-year intro rate)

Comparison rate^

6.15% p.a.

Features
  • 100% offset
  • No ongoing fees
  • Early repayment options without penalty
Maximum loan-to-value ratio (LVR)

80%

People's Choice - Home Loan Package (First Home Buyer)

Interest rate

5.69% p.a. fixed for 3 years

Comparison rate^

6.35% p.a.

Features
  • Additional repayments allowed up to $10,000
  • Split loan option
  • No application fee
Maximum loan-to-value ratio (LVR)

80%

Queensland Country Bank - Rate Package Home Loan Fixed

Interest rate

5.74% p.a. fixed for 1 year

Comparison rate^

6.41% p.a.

Features
  • Extra repayments allowed
Maximum loan-to-value ratio (LVR)

80%

Arab Bank Australia - The Basics Home Loan Variable

Interest rate

5.75% p.a. variable

Comparison rate^

5.88% p.a.

Features
  • Extra repayments allowed
  • Redraw facility
  • Loan portability available
Maximum loan-to-value ratio (LVR)

60%

People's Choice - Home Loan Package Owner Occupier

Interest rate

5.79% p.a. fixed for 4 years

Comparison rate^

6.38% p.a.

Features
  • Additional repayments allowed up to $10,000
  • Split loan option
Maximum loan-to-value ratio (LVR)

80%

Illawarra Credit Union - The Works Package Fixed

Interest rate

5.79% p.a. fixed for 2 or 3 years

Comparison rate^

6.62% p.a. (3-year fixed)

6.67% p.a. (2-year fixed)

Features
  • No monthly fees
  • No annual credit card fee if you satisfy The Works Package conditions
  • Split loan option available
Maximum loan-to-value ratio (LVR)

95%

Greater Bank - Great Rate Home Loan Fixed

Interest rate

5.79% p.a. fixed for 3 years

Comparison rate^

7.26% p.a.

Features
  • $2,000 cashback for eligible refinancers
  • Additional repayments allowed
  • Redraw
Maximum loan-to-value ratio (LVR)

80%

Up Home - Owner Occupied Fixed

Interest rate

5.80% p.a. fixed for 3, 4 or 5 years

Comparison rate^

5.89% p.a. (5-year fixed)

5.90% p.a. (4-year fixed)

5.91% p.a. (3-year fixed)

Features
  • Low or no fees
Maximum loan-to-value ratio (LVR)

90%

G&C Mutual Bank - Essential Worker Owner Occupied

Interest rate

5.80% p.a. variable

Comparison rate^

5.83% p.a.

Features
  • Designed for frontline & essential workers (e.g. healthcare, law enforcement, education)
  • 100% offset account
Maximum loan-to-value ratio (LVR)

95%

Regional Australia Bank - Fixed Home Loan

Interest rate

5.80% p.a. fixed for 3 or years

Comparison rate^

6.14% p.a.

Features
  • No monthly service fees
  • Interest-only repayment option
  • Discounted rate on Your Choice Visa credit card
Maximum loan-to-value ratio (LVR)

60%

Reduce Home Loans - Eco Home Loan Variable

Interest rate

5.84% p.a. variable

Comparison rate^

5.89% p.a.

Features
  • Additional repayments allowed
  • Redraw facility
  • No ongoing monthly fees
Maximum loan-to-value ratio (LVR)

60-80%

Summerland Bank - Eco Home Loan Variable

Interest rate

5.84% p.a. variable (special offer)

Comparison rate^

5.89% p.a.

Features
  • Additional repayments allowed
  • Redraw facility
  • Guarantor support
Maximum loan-to-value ratio (LVR)

60%

Arab Bank Australia - Fixed Rate Home Loan

Interest rate

5.85% p.a. fixed for 1 year

Comparison rate^

7.63% p.a.

Features
  • Flexible repayments
  • Loan portability available
  • Automatic repayments
Maximum loan-to-value ratio (LVR)

80-95%

Pacific Mortgage Group - Owner Occupied Variable

Interest rate

5.89% p.a. variable

Comparison rate^

5.89% p.a.

Features
  • Extra repayments allowed
  • Redraw facility
  • No application, valuation or settlement fee
Maximum loan-to-value ratio (LVR)

80-90%

The Mutual Bank - Budget Owner Occupied Variable Home Loan

Interest rate

5.89% p.a. variable

Comparison rate^

5.89% p.a.

Features
  • Extra repayments allowed
  • Redraw facility
  • No application or monthly fee
Maximum loan-to-value ratio (LVR)

80%

Police Credit Union - Low Rate Home Loan Special Offer

Interest rate

5.89% p.a. variable

Comparison rate^

5.95% p.a.

Features
  • 100% offset
  • Extra repayments allowed
  • Redraw facility
Maximum loan-to-value ratio (LVR)

70%

Australian Mutual Bank - Gumleaf Basic Variable

Interest rate

5.89% p.a. variable

Comparison rate^

5.96% p.a.

Features
  • Additional repayments allowed
  • Redraw facility
  • No annual fee
Maximum loan-to-value ratio (LVR)

60%

Arab Bank Australia - The Essentials Low Rate Home Loan

Interest rate

5.90% p.a. variable (discount of 3.49% off standard variable rate)

Comparison rate^

5.94% p.a.

Features
  • Offset
  • Redraw facility
  • Loan portability
Maximum loan-to-value ratio (LVR)

60%

The Mac Credit Union - Intro Basic Owner Occupied Variable

Interest rate

5.92% p.a. variable (2-year intro rate)

Comparison rate^

7.57% p.a.

Features
  • Extra repayments allowed
  • Redraw facility
  • No monthly or annual fee
Maximum loan-to-value ratio (LVR)

95%

Tiimely Home - Livein Owner Occupied

Interest rate

5.94% p.a. variable

Comparison rate^

5.95% p.a.

Features
  • Unlimited additional repayments
  • Redraw
  • 100% offset
Maximum loan-to-value ratio (LVR)

90%

Community First Bank - Basic Home Loan Variable

Interest rate

5.94% p.a. variable

Comparison rate^

5.99% p.a.

Features
  • Extra repayments allowed
  • Redraw facility
  • No monthly or annual fee
Maximum loan-to-value ratio (LVR)

95%

Unloan - Owner Occupied Variable

Interest rate

5.99% p.a. variable (discount of 0.30% off standard variable rate)

Comparison rate^

5.90% p.a.

Features
  • Extra repayments allowed
  • Redraw facility
  • No application or monthly fees
Maximum loan-to-value ratio (LVR)

80%

BOQ - Owner Occupied Fixed Special Offer

Interest rate

5.99% p.a. (discounted 3-year fixed rate)

Comparison rate^

6.40% p.a.

Features
  • Extra repayments up to $10,000 allowed
  • Eligible refinancers can get up to $2,000 cashback
  • Weekly, fortnightly or monthly repayments
Maximum loan-to-value ratio (LVR)

90-95%

Interest rate Comparison rate^FeaturesMaximum loan-to-value ratio (LVR)

Australian Mutual Bank - Owner Occupied Fixed

5.48% p.a. fixed for 3 years

6.24% p.a.

  • No monthly or annual fees
  • Additional repayments up to $20,000 allowed

80%

Australian Mutual Bank - First Home Owner Occupied Special

5.53% p.a. fixed for 2 years (special offer)

6.30% p.a.

  • Redraw
  • Application & valuation fee waived
  • Guarantor option available

80%

Police Bank - First Home Loan

5.59% p.a. fixed for 3 years

5.85% p.a.

  • Available under the First Home Guarantee (FHBG)

80-95%

Australian Mutual Bank - Owner Occupied Fixed

5.63% p.a. fixed for 2 or 5 years

6.35% p.a. (2-year fixed)

6.16% p.a. (5-year fixed)

  • No monthly or annual fees
  • Additional repayments up to $20,000 allowed

80%

LCU - Savvy First Home Buyer Loan Variable

5.69% p.a. variable (3-year intro rate)

6.15% p.a.

  • 100% offset
  • No ongoing fees
  • Early repayment options without penalty

80%

People's Choice - Home Loan Package (First Home Buyer)

5.69% p.a. fixed for 3 years

6.35% p.a.

  • Additional repayments allowed up to $10,000
  • Split loan option
  • No application fee

80%

Queensland Country Bank - Rate Package Home Loan Fixed

5.74% p.a. fixed for 1 year

6.41% p.a.

  • Extra repayments allowed

80%

Arab Bank Australia - The Basics Home Loan Variable

5.75% p.a. variable

5.88% p.a.

  • Extra repayments allowed
  • Redraw facility
  • Loan portability available

60%

People's Choice - Home Loan Package Owner Occupier

5.79% p.a. fixed for 4 years

6.38% p.a.

  • Additional repayments allowed up to $10,000
  • Split loan option

80%

Illawarra Credit Union - The Works Package Fixed

5.79% p.a. fixed for 2 or 3 years

6.62% p.a. (3-year fixed)

6.67% p.a. (2-year fixed)

  • No monthly fees
  • No annual credit card fee if you satisfy The Works Package conditions
  • Split loan option available

95%

Greater Bank - Great Rate Home Loan Fixed

5.79% p.a. fixed for 3 years

7.26% p.a.

  • $2,000 cashback for eligible refinancers
  • Additional repayments allowed
  • Redraw

80%

Up Home - Owner Occupied Fixed

5.80% p.a. fixed for 3, 4 or 5 years

5.89% p.a. (5-year fixed)

5.90% p.a. (4-year fixed)

5.91% p.a. (3-year fixed)

  • Low or no fees

90%

G&C Mutual Bank - Essential Worker Owner Occupied

5.80% p.a. variable

5.83% p.a.

  • Designed for frontline & essential workers (e.g. healthcare, law enforcement, education)
  • 100% offset account

95%

Regional Australia Bank - Fixed Home Loan

5.80% p.a. fixed for 3 or years

6.14% p.a.

  • No monthly service fees
  • Interest-only repayment option
  • Discounted rate on Your Choice Visa credit card

60%

Reduce Home Loans - Eco Home Loan Variable

5.84% p.a. variable

5.89% p.a.

  • Additional repayments allowed
  • Redraw facility
  • No ongoing monthly fees

60-80%

Summerland Bank - Eco Home Loan Variable

5.84% p.a. variable (special offer)

5.89% p.a.

  • Additional repayments allowed
  • Redraw facility
  • Guarantor support

60%

Arab Bank Australia - Fixed Rate Home Loan

5.85% p.a. fixed for 1 year

7.63% p.a.

  • Flexible repayments
  • Loan portability available
  • Automatic repayments

80-95%

Pacific Mortgage Group - Owner Occupied Variable

5.89% p.a. variable

5.89% p.a.

  • Extra repayments allowed
  • Redraw facility
  • No application, valuation or settlement fee

80-90%

The Mutual Bank - Budget Owner Occupied Variable Home Loan

5.89% p.a. variable

5.89% p.a.

  • Extra repayments allowed
  • Redraw facility
  • No application or monthly fee

80%

Police Credit Union - Low Rate Home Loan Special Offer

5.89% p.a. variable

5.95% p.a.

  • 100% offset
  • Extra repayments allowed
  • Redraw facility

70%

Australian Mutual Bank - Gumleaf Basic Variable

5.89% p.a. variable

5.96% p.a.

  • Additional repayments allowed
  • Redraw facility
  • No annual fee

60%

Arab Bank Australia - The Essentials Low Rate Home Loan

5.90% p.a. variable (discount of 3.49% off standard variable rate)

5.94% p.a.

  • Offset
  • Redraw facility
  • Loan portability

60%

The Mac Credit Union - Intro Basic Owner Occupied Variable

5.92% p.a. variable (2-year intro rate)

7.57% p.a.

  • Extra repayments allowed
  • Redraw facility
  • No monthly or annual fee

95%

Tiimely Home - Livein Owner Occupied

5.94% p.a. variable

5.95% p.a.

  • Unlimited additional repayments
  • Redraw
  • 100% offset

90%

Community First Bank - Basic Home Loan Variable

5.94% p.a. variable

5.99% p.a.

  • Extra repayments allowed
  • Redraw facility
  • No monthly or annual fee

95%

Unloan - Owner Occupied Variable

5.99% p.a. variable (discount of 0.30% off standard variable rate)

5.90% p.a.

  • Extra repayments allowed
  • Redraw facility
  • No application or monthly fees

80%

BOQ - Owner Occupied Fixed Special Offer

5.99% p.a. (discounted 3-year fixed rate)

6.40% p.a.

  • Extra repayments up to $10,000 allowed
  • Eligible refinancers can get up to $2,000 cashback
  • Weekly, fortnightly or monthly repayments

90-95%

Rates are current as of 01 July 2024. ^Warning: Home loan comparison rates are calculated based on a loan amount of $150,000 repaid over a 25-year term with monthly repayments. Different loan amounts and terms will result in different comparison rates. Check with the provider for full loan details, including rates, fees, eligibility and terms and conditions to make sure the product is right for you. While this is an extensive list of the lowest-rate home loans in Australia, we can't guarantee that all loans available in the market are shown. We may earn a commission if you apply for a home loan from a provider via this page.

Lowest home loan interest rates in July 2024

If you’re on the hunt for an ultra-cheap deal, these are the best (lowest) home loan interest rates available right now:

  • Lowest variable home loan rate: 5.69% p.a., comparison rate 6.15% (max 95% LVR). Laboratories Credit Union (LCU).
  • Lowest 1-year fixed rate: 5.85% p.a., comparison rate 7.63% p.a. (max 60% LVR). Arab Bank Australia.
  • Lowest 2-year fixed rate: 5.53% p.a., comparison rate 6.30% p.a. (max 80% LVR). Australian Mutual Bank.
  • Lowest 3-year fixed rate: 5.48% p.a., comparison rate 6.24% p.a. (max 80% LVR). Australian Mutual Bank.
  • Lowest 4-year fixed rate: 5.79% p.a., comparison rate 6.38% p.a. (max 80% LVR). People's Choice.
  • Lowest 5-year fixed rate: 5.59% p.a., comparison rate 6.25% p.a. (max 60% LVR). RACQ Bank.

Source: Money’s database. Rates based on owner-occupier loans (with P&I repayments).

Latest home loan & interest rate news

  • Borrowers will find out whether their loan repayments could be going up yet again when the Reserve Bank of Australia (RBA) Board next meets on 6 August. Some economists predict a possible rate rise following an increase in Australia's annual inflation rate. This is in contrast to the big four banks initially forecasting potential rate cuts later in 2024 or 2025.
  • The total value of new home loans rose 4.8% month-on-month, according to the Australian Bureau of Statistics (ABS) latest lending indicators (April 2024). This reflects a rise in the average loan size, mirroring the growth in Australia’s house prices. New mortgage values are up 24.6% year-on-year.
  • Some lenders are ending introductory rate deals and cashback offers as we enter the 2024-2025 financial year. Things generally hot up again as we approach spring and the busy home buying and selling period.

Updated 3 July 2024

When will interest rates change?

Peter Drennan

Peter Drennan, Money's Research & Data Expert

"The RBA wants inflation back between 2-3%, and we're on the way. While that is the case, there is little need to raise rates. But, with inflation still at 3.6%, rate reductions are not likely to happen in the short term either, unless the economy needs a boost . Economists, including those from the big banks, expect the cash rate to fall towards the end of 2024 and into 2025, which would naturally lead to lower mortgage rates. Lower inflation will also reduce living expenses, improving borrowing capacity, so conditions for home loans are likely to improve in the medium term."

Peter Drennan, Money's Research & Data Expert

How much could you save with a lower rate on your home loan?

Depending on your loan amount, interest rate, and term — you could end up paying 50-100% of your total mortgage amount in interest over time. Getting even a slightly lower rate on your home loan could save you thousands of dollars over the life of the loan.

Here’s an example of how much you could save on a $600,000 home loan (roughly the average home loan amount in Australia) with a 5.50% interest rate instead of 6.00% over a 30-year term, with principal and interest repayments. Neither home loan has an introductory rate or fees.

Interest rate5.50% p.a.6.00% p.a.

Loan amount

$600,000

$600,000

Loan term

30 years

30 years

Monthly repayments

$3,407

$3,597

Interest over the life of the loan

$626,424

$695,029

Difference over the life of the loan

Save $68,605

Hypothetical example only. Assumes the rate on the loan remains unchanged over the term duration.

How to structure your home loan to save on interest

In addition to shopping for the lowest interest rate, here are some simple tips from Money’s home loans expert and mortgage broker, Mansour Soltani, to help you shave time and money off your mortgage.

1

Switch to fortnightly repayments

By making fortnightly repayments instead of monthly, you'll make the equivalent of an extra month's repayment each year without even realising it. There are 26 fortnights a year, the equivalent of 13 monthly repayments. This helps reduce your loan balance sooner and your total interest paid over the life of the loan.

2

Increase your repayments by 5-10%

If your budget allows, consider making extra home loan repayments (however small). For instance, increasing your fortnightly repayments on a $600,000 loan at 6.00% interest over 30 years by just 5% (adding $115 each fortnight) could save you $100,310 in interest overall and shave three years off your home loan.

3

Use your offset account

Keep your household income and savings in your offset account to reduce your interest payable. For a $600,000 home loan with a 6.00% interest rate and fortnightly repayments, having $20,000 in your offset account could shave two years off the loan's life and save $91,742 in interest.

4

Refinance every 2-3 years

Consider refinancing to a lower interest rate every 2-3 years if the market allows, while also reducing your loan term by one year each time. For instance, refinancing a $600,000 home loan from a 6.00% rate on a 25-year term to a slightly lower rate of 5.80% on a 24-year term would slightly reduce your monthly repayments and save you $47,017 in interest over the life of the loan.

Bonus tip...

Mansour Soltani

Mansour Soltani, Money's Home Loans Expert

“To get the best home loan interest rate, your LVR should be 60% or less. Every borrower should aim to lower their LVR to 60% as soon as possible. You can do this by paying down your mortgage when you can or by building the equity in your home by increasing its value.”

Mansour Soltani, Money's Home Loans Expert

Fixed vs variable interest rate home loans compared

Your home loan interest rate will either be fixed, variable or split (a combination of the two). Here’s how they work.

Fixed versus variable interest rate
Line chart up 5 svg

Variable rate home loan

The interest rate can fluctuate throughout the life of the loan. You can benefit from lower repayments when interest rates drop and you usually have more flexibility to make extra repayments on your loan to pay it off faster. The downside of a variable rate home loan is the unpredictability — if rates go up, so will your repayments. The majority of owner-occupier loans in Australia have a variable interest rate, according to the RBA.

lock

Fixed rate home loan

The interest rate on the loan is fixed for a period of time — typically between one and five years. This gives you certainty over your repayments during the fixed rate period and protection from sudden rate increases. The main downside of a fixed rate home loan is that you may not be able to make extra repayments or have access to extra features like redraw.

How does a split home loan work?

A portion of your home loan is fixed and the remainder is on a variable interest rate. This can give you the best of both worlds, the certainty of fixed rate repayments and the flexibility of a variable loan. You can choose the portions of your split, whether it's 50/50, 60/40, or 70/30.

Principal & interest vs interest-only home loan repayments

Your home loan is made up of two parts: the loan principal (what you borrow) and the interest (not including fees). So, when you apply for a home, you'll generally have two repayment options:

Coins stacked 1 svg

Principal and interest repayments (P&I)

You pay both the principal of your home loan and the interest. Your regular repayments will be higher, but you will pay less interest overall over the life of the loan. This is the most common type of loan repayment structure for owner-occupiers.

Coins swap 1 svg

Interest-only repayments

You only pay the interest component of your loan for a set period (up to five years). This lowers your mortgage repayments during that period, but it means you'll pay more interest over the life of the loan. Interest-only loans are popular among investors because it can free up cash flow, with the extra costs being less of an issue as interest repayments may be tax deductible.

How does your LVR affect your home loan?

One of the biggest factors that will impact your home loan interest rate is your loan-to-value ratio (LVR). This is your loan amount relative to the property's value.

For example, if your loan amount is $600,000 and the property you’re buying is worth $750,000 (i.e. your home loan deposit is $150,000), your LVR is 80%. In other words, you’re borrowing 80% of the property’s value.

The lower your LVR, generally the lower your rate and vice versa (see this example below from Ubank).

If your LVR exceeds 80% (you have less than a 20% deposit), you may need to pay for lender’s mortgage insurance (LMI).

Ubank rates and lvrs

Types of home loans explained

Owner-occupier home loan

This is a standard home loan to buy a property you want to live in. Owner-occupier home loans generally have lower interest rates, than investor loans. Owner-occupier home loans are the most common type of home loan in Australia, according to the ABS.

Refinance home loan

A refinance home loan is a new loan you can take out to pay out your current mortgage. This often involves switching to a different lender (typically for a better rate). Still, you can refinance with your current lender by switching to a different loan product with better terms. Refinancing comes with fees, so make sure you know the cost and can weigh it against the benefits before deciding.

Low deposit home loan

Commonly used by first-home buyers, a low deposit home loan allows you to buy a home with a 5-10% deposit, instead of the standard 20% of the property’s value most lenders require. This means you may have to pay LMI, unless you apply through a government scheme or with a guarantor.

Low doc home loan

A low doc home loan requires minimal documentation when you apply. It’s most commonly used by business owners or self-employed individuals who can’t provide the standard documents most lenders ask for, like payslips.

Construction loan

Designed for borrowers who plan to build a home or investment property. A construction home loan functions a little differently than a regular home loan, allowing you to withdraw funds in stages as needed to complete the construction. This type of loan is often combined with a land loan to purchase vacant land or a house and land package.

Bad credit home loan

A bad credit home loan allows borrowers with a bad credit score/credit history or those who’ve declared bankruptcy to secure a home loan and purchase property.

Investment home loan

You can take out this home loan to buy an investment property (one from which you can get rental income). Investment home loans generally have higher interest rates because investors are considered riskier borrowers compared to owner-occupiers.

Home equity loan

A home equity loan allows you to borrow against the equity in your home. You can do this by increasing your existing home loan balance (known as a top-up) or with a cash-out refinance (where your equity is paid as a lump sum). Another option is a home equity line of credit, which lets you borrow against your home's equity when you need it.

Guarantor home loan

A guarantor home loan works much like a standard home loan, but includes a guarantor (typically a parent or family member) with home equity to secure part of your loan. It can also be known as a no-deposit home loan.

Bridging loan

A bridging loan is a short-term loan designed to cover the financing gap between purchasing a new property and selling an existing one. You can also use a bridging loan to fund a new construction while you live in your existing property.

Second mortgage

A second mortgage lets you to borrow against your home equity to take out an additional mortgage on your property. This option is often used when serving as a guarantor for a family member or as an alternative to refinancing.

SMSF loan

This is a home loan used by a self-managed super fund (SMSF) to purchase an investment property. It's similar to a trust loan used by family trusts and other trust entities.

What home loan features can you access?

Home loans come with features that can help you save on interest and manage your mortgage more effectively.

Offset account

A 100% offset account is a transaction account linked to your home loan that reduces your interest payable. Every dollar in that account offsets what you owe on your mortgage and your interest. Think of it like a high interest savings account, only instead of earning interest, you're avoiding it.

coins stacked

Extra repayments

Many home loans offer the option to make additional repayments on top of your minimum mortgage repayments. This allows you to pay down your principal loan faster and save on interest. Fixed-rate loans often have limits on additional repayments of up to $10,000 or $20,000 per year.

credit card down svg

Redraw facility

Allows you to withdraw any extra repayments you've made on your home loan. You can use your redraw facility for any reason, including emergencies, investments, or other expenses. You can find more in our guide comparing a redraw and offset account.

luggage 02 svg

Repayment holiday

This allows you to temporarily pause or reduce your regular loan repayments, but it could increase your future repayments as accrued interest will be added (capitalised) to your home loan balance. This feature can be handy during parental leave or if you anticipate a temporary reduction in income.

home

Portability

This option allows you to transfer your home loan to another property without incurring fees. This saves you the hassle of refinancing if you move home and allows you to keep your fixed rate without break costs.

Bank note 1 svg

Cashback offers

Some lenders offer cashback deals to attract new customers and incentivise borrowers to refinance their home loans. Some lenders also offer cashbacks to first-home buyers.

Home loan fees to keep in mind

Application fee: This is an upfront fee to set up your home loan. It’s also known as a loan processing fee or establishment fee. Depending on the lender, it can range from $150 to $750.

Monthly/account-keeping fees: Monthly service fees cover the cost of maintaining your loan. Depending on the loan product, these can range from $8 to $10 (sometimes more).

Annual package fee: A yearly fee charged on a package home loan (which combines your mortgage with other financial products like a credit card). It can range from $300 - $500, depending on the loan product.

Legal, valuation and settlement fees: These fees cover the lender’s costs for legal paperwork, property valuation and settlement.

Exit fee: You might pay an exit fee (or a discharge fee) when you pay your mortgage in full. Early exit fees or break costs apply when you pay off your home loan early.

Fees for features: Some loans come with fees if you use certain features like your redraw facility or additional repayment option. Make sure to weigh up home loan fees against the benefits the feature provides.

Should you use a mortgage broker for your home loan comparison?

Mortgage brokers facilitate the majority of new residential home loans in Australia. A good mortgage broker takes the guesswork out of doing a home loan comparison and may even be able to get you a more competitive rate. Just bear in mind they usually only work with lenders on their panel and those they’re accredited with.

Make sure your mortgage broker gives you 3-5 lender options, and get them to explain why they chose these lenders specifically.

Mansour Soltani

Mansour Soltani, Money's Home Loans Expert

“If you’re refinancing or purchasing a new home and your LVR is less than 70% (in other words you have a deposit or equity of at least 30%), you should be able to get better than the advertised price, especially if your loan amount is under $1 million. Usually, the lender will shave 10-15 basis points off the advertised rate and if they don't, ask why."

Mansour Soltani, Money's Home Loans Expert

How to apply for a home loan

The home loan application process is similar across lenders and typically looks like this:

1

Gather your supporting documents

Collect all necessary documents the lender may ask for, including proof of income (e.g. payslips, tax returns), identification documents (e.g. passport, driver's licence), bank statements and details of your assets and liabilities.

2

Complete a home loan application form

You’ll be asked to provide information about your finances, deposit or equity (if you’re refinancing) and the type of property you want to buy. A lending specialist may call you to discuss your application and the fine print.

3

Get conditional approval

You’ll generally be asked to submit all your supporting documents at this stage. Your lender will assess your financial position and confirm your borrowing capacity, after which you may receive conditional approval (pre-approval).

4

The lender will conduct a credit check

Your lender will check your credit report via an external bureau like Equifax or Experian. They will also review your credit history, income, expenses, and existing debts. Your lender should ask for permission before conducting a formal credit check.

5

The property will undergo a valuation

Your lender will arrange for a valuation of the property you want to buy to determine its market value and your LVR. This could involve either a physical inspection of the property by an independent valuer or a digital valuation using recent sales data from CoreLogic for the area. An LVR higher than 80% will generally mean you need to pay for lender’s mortgage insurance (LMI).

6

Get a loan offer

If your application is approved, your lender will issue you a formal loan offer detailing the terms and conditions of the loan, including your rate. Review the loan offer carefully with your conveyancer and sign it if you accept the terms.

7

Get ready for settlement

Your lender will finalise your loan through to settlement and disburse the funds to the seller. Your conveyancer should manage your home loan registration and property title transfer.

8

Review your home loan regularly

The work continues after your home loan settlement and home purchase. Generally, you should do a thorough home loan check every couple of years to ensure you’re still on a competitive rate and that your loan still meets your changing needs. If not, you can refinance your home loan.

Home loans guides & resources

Our home loan guides will help you navigate the road ahead, whether you're buying, building or looking to save on an existing loan.

Home loan FAQs

A home loan or mortgage is used to finance a home or investment property. Home loans are usually 'secured' against the property you're buying. You can choose between a variable or fixed rate. Mortgage terms in Australia range up to 30 years.

The minimum eligibility requirements for a home loan include:

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  • Australian citizenship or permanent residency (or married or in a de facto relationship with an Australian citizen or permanent resident)
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  • You must be over 18 years of age
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  • Meet the minimum income requirements
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  • Have a deposit or equity to contribute towards the purchase
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  • A good credit history

The home loan that’s best for you will depend entirely on your goals and circumstances, but it should ideally have the trifecta:

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  • A competitive interest rate
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  • Features you want or need (e.g. offset, redraw, additional repayments)
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  • Affordable fees

How much you can borrow with a home loan will depend on how much of a deposit you have (or equity in your existing property if you’re refinancing), plus your income, expenses, liabilities (including outstanding debts) and if you have any existing assets like an investment property with equity. To assess your borrowing capacity, lenders will consider your financial situation and credit profile.

You generally have the option to make repayments on your home loan weekly, fortnightly or monthly. Your mortgage repayments will include a principal (what you borrowed) and interest component. Initially, a larger portion of your repayments will go towards paying off the interest; over time, more of your repayments will go towards reducing your principal. This is because interest is calculated daily based on your outstanding loan balance, which decreases as you repay more principal over time.

There are hundreds of home loan lenders in Australia, including retail banks (like the Big Four banks), credit unions, non-bank lenders and mortgage brokers. Each type of lender has pros and cons to be aware of. The majority of home loans are taken out through retail banks, while non-bank lenders may offer more competitive rates and specialist products. Meanwhile, mortgage brokers can help borrowers find home loans with different lenders and get paid a commission for the products they sell. Finding the cheapest home loan interest rates in Australia is a matter of doing your research.

Typically, you can opt to fix your home loan for a period ranging from one to five years. However, some lenders, such as ANZ and RAMS, provide fixed-rate home loans for up to 10 years.

Compare fixed rate home loans for different durations:

Megan Birot Money.com.au writer

Written by

Megan Birot

Megan is a finance writer with more than 10 years of experience in the industry. She’s passionate about helping people make sense of financial topics and principles. She's certified in Finance & Mortgage Broking and is compliant to provide general advice in Tier 1 General Insurance.

Mansour Soltani home loan expert

Reviewed by

Mansour Soltani

Mansour Soltani is Money.com.au’s home loans expert. He’s a mortgage broker with more than 20 years of experience in the finance and real estate industry. Mansour is the Director of Soren Financial and has been featured in publications such as the ABC, Domain.com.au and Australian Broker.

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