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Best Home Loan Rates Comparison

Compare home loan rates from 4.99% (comparison rate^ 6.15%)

Enter loan amount

$

Lowest home loan rates on our database

Variable rate (p.a.)

5.60% (5.65%)

Comparison rate^ (Max LVR 50%)

1-year fixed rate (p.a.)

5.74% (6.06%)

Comparison rate^ (Max LVR 95%)

2-year fixed rate (p.a.)

5.49% (7.65%)

Comparison rate^ (Max LVR 80%)

3-year fixed rate (p.a.)

4.99% (6.15%)

Comparison rate* (Max LVR applies)

4-year fixed rate (p.a.)

5.49% (6.18%)

Comparison rate^ (Max LVR 80%)

5-year fixed rate (p.a.)

5.49% (6.15%)

Comparison rate^ (Max LVR 80%)

Home loan comparison

Finding the best home loan interest rates is often the priority when comparing. But any good mortgage broker will tell you that whilst getting the lowest rate you can is vital, there are other factors to compare.

Things like: loan structure, whether you get an offset account or redraw facility, and the ability to pay extra and reduce your loan balance sooner. You’ll also need to consider whether you qualify for the rates you see based on your loan-to-value ratio (LVR).

Compare home loan rates in Australia

Compare the best home loan rates in Australia and check your eligibility with 26 lenders, instantly. The table is sorted by lowest regular repayment. Read the comparison rate warning and other important information.

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Rates updated 02 December 2024

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Don't be afraid to haggle on rates

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

Home loan interest rate analysis – December 2024

The Money team carried out an in-depth analysis of the 100 cheapest home loans on our database in December 2024. This is what we found:

  • The cheapest interest rates are most commonly offered by customer-owned or regional banks, with four out of five (79%) of the top rates coming from that sector. Specialist industry lenders were next on 10%, followed by non-major bank on 6%
  • Bank Australia had the highest number of low rate home loan options (20), followed by Australian Mutual Bank (9), Newcastle Permanent (9), Regional Australia Bank (8), then Police Bank (7).
  • None of the big four banks had a product featuring on the list of the 100 lowest rates.
  • Fixed rate loans dominate the lowest rates currently, with only a single variable rate in the top 100. Three- and two-year fixed loans most commonly have the cheapest rates, our analysis showed.
  • For low-deposit borrowers, over two in five (43%) of the lowest rate loans are available with a deposit of less than 20%, with 31% of these available with a 5% deposit.

Updated 2 December 2024

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

An average home loan borrower could end up paying back twice as much as what they borrowed once interest is factored in. A lower rate could save you tens of thousands of dollars over time.

Loan amountMonthly repayment (6.27% p.a.)Monthly repayment (5.75% p.a.) Total saving (over 30-year loan)

$500,000

$3,085

$2,918 (-$167)

$60,202

$600,000

$3,702

$3,501 (-$201)

$72,243

$700,000

$4,319

$4,085 (-$234)

$84,283

$800,000

$4,936

$4,669 (-$267)

$96,323

Hypothetical example comparing the average interest rate on new owner occupier home loans, per the RBA, to the lowest variable rate on Money.com.au's database. Assumes principal and interest repayments and that the rate on the loan remains unchanged over the term duration.

Factors that impact your home loan rate

Your home loan interest rate could depend on:
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Your loan-to-value ratio (LVR)

This is your loan amount as a percentage of your property's value. The lower your LVR, the lower your rate is likely to be. If your LVR exceeds 80% (you have less than a 20% home loan deposit), you may need to pay for lender’s mortgage insurance (LMI).

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If you’re on a fixed or variable rate

Your interest rate will vary depending on whether you choose a fixed or variable rate. Based on Money's analysis of various lenders, fixed-rate home loans are currently slightly more competitive than most variable-rate home loans, but most customers are opting for a variable rate currently.

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The type of loan

Your interest rate will also be dictated by whether you're taking out an investment property loan or a loan to buy a home to live in. Investors typically pay higher rates. If you choose a loan an interest-only home loan, you can also expect to pay a higher rate.

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The lender you choose

Each lender sets its own home loan interest rates based on how competitive it wants to be in the market and the kind of borrowers it wants to attract.

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Your loan amount

You may pay a higher interest rate if your home loan is below a certain value (e.g. below $300,000) or on a very large mortgage (e.g. above $2,000,000). Lenders make less money from smaller loans, but with the same costs. Larger loans can be seen as riskier for lenders and may attract higher rates as a result.

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Your property’s location

If your property is in a high-demand urban area with good amenities, more lenders are likely to be willing to lend to you, meaning you'll likely have access to more options and better rates. Rural property owners may be limited to lenders with a higher risk tolerance, who generally charge higher rates.

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Your risk profile

A borrower with a good credit score in a full-time permanent job will typically qualify with lenders offering the lowest home loan interest rates. A borrower with a low credit score or who is self-employed may be limited to specialist lenders who tend to charge higher rates.

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Economic factors

A range of economic indicators like the rate of inflation, unemployment figures, and the level of economic growth can all the influence home loan interest rates charged by banks and other lenders.

When will home loan 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. With core inflation still at 3.5%, most economists don't expect the cash rate to fall until 2025. This 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

The next Reserve Bank of Australia (RBA) cash rate decision will be announced after its board Board meeting on 10 December 2024. The cash rate has remained unchanged since November 2023 — homeowners eager for some relief are anxiously awaiting any signs of interest rate cuts.

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

Types of home loan interest rate explained

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.

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.

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.

Some home loans come with a limited-time lower interest rate as an incentive to customers. Once the intro rate expires, your loan will typically revert to a higher ongoing rate for the remainder of the loan term.

The comparison rate on a home loan is designed to reflect the cost of the loan per year, including interest and most fees. It can be a helpful tool for comparing loans, but the comparison rate has its limitations. For example, it is always calculated on a loan size of $150,000 over a 25-year loan term, which won't be realistic for a lot of borrowers. On a fixed-rate loan, the comparison factors in the rate the loan reverts to once the fixed term ends.

How to compare home loan rates

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Compare the interest rate & comparison rate

The headline interest rate advertised by a lender is a useful starting point but it's worth looking at the comparison rate too as this also factors in most of the loan fees. Bear in mind that the comparison rate on fixed rate loan factors in the the variable rate that applies by default when the fixed term ends.

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Check the eligibility criteria

The best home loan rates will only be available on specific loan types and for certain borrowers. For example, a lender's lowest rates are generally available on owner occupier loans, for borrowers with a low loan size relative to the value of their property (loan-to-value ratio).

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Consider who's offering the rate

All other things being equal, picking the lowest rate home loan is a perfectly sensible thing to do. But it's worth also thinking about factors like the lender's reputation, the level of service you're likely to get, the features available and how convenient managing your loan will be. Some people may be willing to be a bit more for a better overall home loan experience.

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Use a broker if you need help

The majority of new residential home loans in Australia are facilitated by mortgage brokers. A good broker takes the guesswork out of doing a home loan comparison and may even be able to get you a more competitive rate. Make sure your mortgage broker gives you 3-5 lender options, and ask them to explain why they chose these lenders specifically.

Don't forget about home loan features

A home loan with a low interest rate will be all the more effective at saving you money if you can combine it with useful features.

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.

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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.

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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.

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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.

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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.

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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.

Compare more home loan interest rates

HOME LOANS

Investment home loan rates comparison

Compare investment property loan rates from a wide range of Australian lenders, starting from 4.99% p.a. (comparison rate^ 6.36% p.a.)

Sean Callery Editor Money.com.au

By Sean Callery

Home loan interest rate FAQs

The best home loan rates are generally available to owner occupiers with a low loan-to-value ratio. In other words, if you have a large deposit or a high level of equity in your home relative to the loan amount, many banks will offer a lower rate. That’s because these loans are less risky for lenders.

Investors and other borrowers perceived as presenting a greater risk to lenders are generally charged higher home loan rates.

The official cash rate has remained unchanged for almost a year now, but some lenders are starting to lower their rates in anticipation of rate cuts to come. Most cuts have been to fixed loans and fixed rates across all terms (1-5 years) are now lower than variable rates. Even so, less than 3% of borrowers are choosing a fixed rate. It seems most people want to be on a variable rate for when the anticipated rate cuts come. When will that be? If the economists from the major banks are to be believed, it could be anywhere from December this year to mid 2025. In the meantime, most of the growth in new home loan borrowing is being driven by first home buyers and investors, but refinancers still account for around 50% of all loans settled. Plenty of Australians are still shopping for a low rate and are switching when they find one.

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.

Yes, and you should! Home loan interest rates are constantly changing and if yours is no longer competitive, you should ask your lender for a discount. Particularly if you have an LVR below 60% and you are on top of your repayments, you should be in a strong position to negotiate. If your lender will not offer a discount, you can consider switching lenders to get a better rate.

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 is a Finance Writer and Head of PR at Money with over a decade of industry experience. She keeps her finger on the pulse of financial trends, providing journalists and media with data, insights, and news that help Australians navigate complex topics and concepts. She's certified in Finance & Mortgage Broking and is compliant to provide general advice in Tier 1 General Insurance.

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.

Important information

Home loan comparison rates are calculated based on a loan amount of $150,000 repaid over a 25-year term with monthly repayments. The comparison rates only apply to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees and cost savings such as fee waivers are not included in the comparison rate but may influence the cost of the loan. 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.

General information only

The information on this page is general in nature and has been prepared without considering your objectives, financial situation or needs. You should consider whether the information provided and the nature of any home loan product is suitable for you and seek independent financial advice if necessary.

We are not providing you with a recommendation or suggestion about a particular home loan. You should read the relevant disclosure statements or other offer documents before deciding whether to apply for or continue to use a particular product.

What products, features and information are shown

While we make every effort to ensure all home loans available in Australia are shown in our comparison tables, we do not guarantee that all products are included.

Our product comparisons may not compare all home loan features and attributes relevant to you.

Product information, such as interest rates, fees and charges, is subject to change without notice. Before acting on any information, you should confirm the relevant product information with the lender.

How home loans are sorted and filtered by default

Users can easily change the sort order and apply product filters to our product comparison tables. However, when you arrive on a page initially, by default home loans are sorted by:

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  • Lowest regular repayment amount, then;
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  • Loans interest rate, then;
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  • Lowest comparison rate, then;
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  • Provider name (A-Z)

Some home loan products listed in our tables are available through a mortgage broker. These are the products with an option to ‘Check Eligibility on Money.com.au’. Mortgage brokers may not be able to offer loans from every provider and there may be more suitable loans for your personal circumstances.

Mortgage brokers are not authorised by Money Australian Credit Licence and operate under their own Australian Credit Licence, or as a credit representative of another Australian Credit Licensee. Mortgage brokers can make recommendations about home loan products that may suit your objectives, financial situation and needs.

Our tables feature all home loans available from lenders on our database that match the search criteria selected. Lenders do not pay to feature in our tables, nor do we earn commission if you click to visit a lender’s website. The order of the products in the table is not influenced by any commercial arrangements.

If you get help from a mortgage broker as a result of visiting this page, we may earn a commission.

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Our Money Promise

Money Pty Ltd (trading as Money) (ABN 42 626 094 773) Australian Credit Licence 528698 provides information about credit products. Money does not compare all products or issuers available in Australia. We are not a broker or credit provider and when we provide information via this website, we are not providing you with a recommendation or suggestion about a particular credit product. We may receive a commission when you apply for a home loan as a result of outbound links on this website.

This material has been prepared by Money Pty Limited (ABN 40 664 954 536) (Money, ‘us’ or ‘we’). Money is a corporate authorised representative (CAR 001307399) of 62 Consulting Pty Limited (ABN 88 664 809 303) (AFSL 548573) (62C). The material is for general information only and is not an offer for the purchase or sale of any financial product or service. The material is not intended to provide you with financial or tax advice and does not take into account your objectives, financial situation or needs. Although we believe that the material is correct, no warranty of accuracy, reliability or completeness is given, except for liability under statute which cannot be excluded. Please note that past performance may not be indicative of future performance and that no guarantee of performance, the return of capital or a particular rate of return is given by 62C, Money, any of their related body corporates or any other person. To the maximum extent possible, 62C, Money, their related body corporates or any other person do not accept any liability for any statement in this material.

The information on this website is intended to be general in nature and has been prepared without considering your objectives, financial situation or needs. You should read the relevant disclosure statements or other offer documents prior to making a decision about a credit product and seek independent financial advice. Whilst Money.com.au endeavours to ensure the accuracy of the information provided on this website, no responsibility is accepted by us for any errors, omissions or any inaccurate information on this website.

Interest rates, fees and charges are subject to change without notice. Before acting on any information, you should confirm the interest rates, fees, charges and product information with the provider. For clarity, where we have used the terms “lowest” or “best” these relate solely to the rates of interest offered by the provider and not on any other factor. The application of these terms to a particular product is subject to change without notice if the provider changes their rates.

The calculator provided on money.com.au is intended for informational and illustrative purposes only. The results generated by this calculator are based on the inputs you provide and the assumptions set by us. These results should not be considered as financial advice or a recommendation to buy or sell any financial product. By using this calculator, you acknowledge and agree to the terms set out in this disclaimer. For more detailed information, please review our full terms and conditions on the website.

Assumptions:

  • The calculations do not account for changes in interest rates or other market conditions that may occur.
  • Results are approximations and may differ from actual payment schedules or amounts.
  • The calculator does not include all fees and charges that you may incur in relation to a financial product.

Limitation

  • This calculator does not guarantee the availability of any financial product or the accuracy of the calculations. Please consult a financial advisor or the relevant product provider to obtain specific advice tailored to your circumstances.
  • money.com.au does not accept any liability for errors or omissions, or for any loss you may suffer as a result of relying on these calculations.
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