Home loan comparison

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.

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.

 

Rent vs buy: Which is better?

There’s no real answer to this question, because, depending on the circumstances, renting a home can better for some people while buying a home may be better for others.

Rent payments are often lower than mortgage repayments, and there are fewer property maintenance costs to worry about. To secure a rental, renters only have to pay a bond as opposed to a hefty house deposit.

But on the home-buying side, you can have greater freedom to do what you want with the property, more security of living and most importantly, you’re building equity in a property that you actually own. It’s yours, and you could potentially sell it for hefty profit years down the road.

It might be the Australian dream to own a home of your own, but depending on the circumstances, you might actually be financially better off renting over a set period of time. Our rent vs buy calculator can help you work out what the better choice is for you.

Rent vs buy calculator

Our rent vs buy calculator will help you estimate your financial position when renting, compared to buying a house.

To use our rent vs buy calculator, you’ll need to enter following details:

  • Weekly rent
  • Your current savings
  • Your monthly savings
  • Your average annual rate of returns on your savings (if all of your savings is in cash and you don’t have any investments, like shares, you can just put your savings account interest rate)
  • The property purchase price and loan amount
  • The loan term
  • The loan interest rate
  • Any upfront and ongoing costs (for renting and buying)
  • Where your savings would go if you were buying a home (savings account or offset account?)
  • Assumed annual house price growth
  • The period of analysis

With these inputs, the calculator can give you a rough estimation of your future net worth as a renter compared to a buyer in the period of time you’ve chosen. Although it requires a lot of assumptions, this estimation will hopefully help give you a rough idea of whether you’re better off renting or buying a home.

 

Home loan news


Disclaimers

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:

  • The big four banks are: ANZ, CBA, NAB and Westpac
  • The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2020. They are (in descending order): Credit Union Australia, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
  • The larger non-bank lenders are those who (in 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.
  • If you click on a product link and you are referred to a Product or Service Provider’s web page, it is highly likely that a commercial relationship exists between that Product or Service Provider and Savings.com.au

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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