Buying a home or looking to refinance? The table below features home loans
with some of the lowest interest rates on the market for owner occupiers.
Product Features
Monthly repayments: $1,476
Advertised
Rate (p.a.)
Comparison
Rate (p.a.)
Product Features
Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. If products listed have an LVR <80%, they will be clearly identified in the product name along with the specific LVR. The product and rate must be clearly published on the Product Provider’s web site. Monthly repayments were calculated based on the selected products’ advertised rates, applied to a $400,000 loan with a 30-year loan term.
A loan’s comparison rate can help provide a better indication of the cost of a loan by taking both the interest rate and fees into account.
That’s why the comparison rate is usually higher than the advertised interest rate.
By law, each lender is required to display the comparison rate of a home loan next to the advertised interest rate.
Not all home loans are the same, which is why the comparison rate isn’t always a perfect way of comparing home loans. A home loan comparison rate is uniformly calculated based on an assumed loan amount of $150,000 with a loan term of 25 years, and then factors in the fees the loan has stretched over that time.
Because of these assumptions, the comparison rate should be taken with a pinch of salt. Data from 2019 found the median value of a dwelling in Australia was $516,713 - much more than $150,000 - and home loans can often last for 30 years plus.
Despite its flaws, however, the comparison rate can make it a lot easier for you to compare home loans on costs.
Our home loan comparison rate calculator can help you see how comparison rates are calculated to reflect a loan’s costs.
To use our comparison rate calculator, enter the following information:
By entering all of this, Savings.com.au’s home loan comparison rate calculator can estimate a loan’s comparison rate, repayments, total fees payable, total interest payable, and the total cost.
The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:
Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site.
In the interests of full disclosure, Savings.com.au, Performance Drive and Loans.com.au are part of the Firstmac Group. To read about how Savings.com.au manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.
*The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
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