Fact Checked
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Extra Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.54% p.a. | 5.58% p.a. | $2,852 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | ||||||||||
5.49% p.a. | 5.40% p.a. | $2,836 | Principal & Interest | Variable | $0 | $0 | 80% |
| Promoted | Disclosure | ||||||||||
5.64% p.a. | 5.89% p.a. | $2,883 | Principal & Interest | Variable | $250 | $250 | 60% |
| Promoted | Disclosure | ||||||||||
5.49% p.a. | 5.50% p.a. | $2,836 | Principal & Interest | Variable | $0 | $0 | 60% |
| Promoted | Disclosure | ||||||||||
5.64% p.a. | 5.89% p.a. | $2,883 | Principal & Interest | Variable | $248 | $350 | 60% |
| Disclosure | |||||||||||
6.14% p.a. | 6.20% p.a. | $3,043 | Principal & Interest | Variable | $0 | $799 | 95% | |||||||||||||
5.64% p.a. | 5.66% p.a. | $2,883 | Principal & Interest | Variable | $0 | $250 | 60% | Disclosure | ||||||||||||
5.78% p.a. | 6.17% p.a. | $2,927 | Principal & Interest | Variable | $0 | $350 | 80% | |||||||||||||
6.14% p.a. | 6.49% p.a. | $3,043 | Principal & Interest | Variable | $350 | $210 | 90% | |||||||||||||
6.29% p.a. | 6.67% p.a. | $3,092 | Principal & Interest | Variable | $0 | $0 | 90% | |||||||||||||
6.39% p.a. | 6.42% p.a. | $3,124 | Principal & Interest | Variable | $null | $325 | 95% | |||||||||||||
6.09% p.a. | 6.15% p.a. | $3,027 | Principal & Interest | Variable | $0 | $835 | 90% | |||||||||||||
5.69% p.a. | 5.71% p.a. | $2,899 | Principal & Interest | Variable | $0 | $250 | 80% | Disclosure | ||||||||||||
5.69% p.a. | 5.94% p.a. | $2,899 | Principal & Interest | Variable | $248 | $350 | 80% | Disclosure | ||||||||||||
5.64% p.a. | 5.68% p.a. | $2,883 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure |
Important Information and Comparison Rate Warning
Important Information and Comparison Rate Warning
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July Home Loan Rates & Deals
After a second RBA cut for 2025, the home loan market continues to shift in favour of borrowers. For now, the cash rate is still at a restrictive level, but with further cuts later in the year looking likely mortgage holders have plenty of justification to be hopeful about even lower interest rates moving forward.
As of 2 July 2025, here were the home loans in the savings.com.au database to catch my eye:
Which lenders are offering the lowest home loan rates on Savings.com.au?
| Home Loan Type | Lender & Product | Rate p.a. | Comp. Rate p.a.* | Notes |
|---|---|---|---|---|
| Lowest Variable-rate Home Loan | Police Bank - First Home Loan | 5.34% | 5.41% | LVR 80-98% |
| Lowest Fixed-rate Home Loan | Australian Mutual Bank - Three Year Fixed | 4.99% | 5.75% | 3-year fixed, <80% LVR |
| Lowest Refinance Home Loan | Australian Mutual Bank - Three Year Fixed | 4.99% | 5.75% | 3-year fixed, <80% LVR |
| Lowest Investor Home Loan | Police Bank - Three Year Fixed | 4.99% | 5.71% | 3-year fixed, <60% LVR |
| Lowest Green Home Loan | Bank Australia – Clean Energy Home Loan, New Build | 4.94% | 5.95% | 3-year fixed, new build, <90% LVR |
| Refinance Cashback Deal | Regional Australia Bank – Purchasing or refinancing loans | — | — | Up to $4,000 cashback on owner-occupier or investment loans >$200k |
Until next month 🫡
For more information on how we’ve selected these products, the products we compare, how we make money, and other important information about our service, please click here. Rates correct as of 30 June, 2025 . View disclaimer
How to compare home loan features to save money
Here are some of the top things to consider when choosing a home loan:
Loan Purpose
When comparing home loans, it's important to know exactly what your loan purpose is, as home loan products can wildly differ depending on what you need the home loan for. Here are the most common home loan purposes:
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Buying a home to live in: Owner-occupied home loans
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Buying a home to rent out and sell for profit in future: Investment home loans
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Building a home: Construction home loans
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Changing an existing home loan: Refinancing home loans
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Buying an investment property for an SMSF fund: SMSF loans
Fees
Home loans can come with a variety of one-off and ongoing fees, such as establishment fees and annual fees. It can be hard to compare all these fees, but here's a quick tip - use the comparison rate as a guide.
A home loan with high fees will often have a comparison rate that's much higher than its advertised interest rate.
Offset or Redraw
Home loan features such as offset accounts and redraw facilities can be incredibly valuable for borrowers, enabling them to save big on interest by essentially storing their spare cash in the loan, or an account that's linked to the loan. These funds effectively reduce the balance of the loan that's charged interest while remaining accessible for the borrower to withdraw if needed.
However, the level of accessibility of these funds is one of the key differences between offset accounts and redraw facilities, with money typically easier to withdraw from an offset account than a redraw facility. Most home loans come with a redraw facility, while home loans with offset accounts tend to have higher interest rates.
LVR & Deposit Size
Loan to value ratio (LVR) reflects the size of a home loan in respect to the value of the property it's being used to purchase, and is a key number to keep in mind when comparing home loans. It's inherently linked to the size of your deposit - the bigger your deposit or equity in the value of a property, the smaller your LVR will be. For example, if you have 20% equity in your property, you have an 80% LVR. Try out our LVR calculator to discover your LVR.
Lenders often reserve the lowest interest rates for borrowers with LVRs of 60% or less, and typically charge lenders mortgage insurance on borrowers with LVRs over 80%.
Home Loan Approvals
While the cost of a home loan is likely your priority, it might be worth comparing things like the quality of customer service or approval times of different lenders. Some lenders make it much easier to apply for a home loan than others thanks to having a smoother online interface and speedy loan approval technology. You may also wish to compare lenders on their pre-approval requirements and conditions.
Regardless of the lender, you've still got to be prepared to put in a good loan application. Check out our top home loan application tips.
Cashback Offers & Deals
Some lenders have offers designed to entice you to take out a loan or refinance with them. One example is cashback offers, where there is a cash incentive (normally a few thousand dollars) to do so. However, it's important to consider such perks alongside the fundamentals of the loan - namely its interest rate and fees.
Grants & Government Assistance
Particularly if you're a first home buyer, it's worth checking out whether you qualify for support from your state/territory or federal government to help you get your foot in the door. Current government support for home buyers includes:
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First home buyer grants: One-off grants between $10,000 to $30,000 (depending on the state) for certain buyers buying or building a new home under a certain value
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Stamp duty concessions: Discounted or waived stamp duty for first home buyers of certain properties
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Home Guarantee Scheme: Federal government guarantees (the First Home Guarantee, Regional Home Guarantee and Family Home Guarantee) that enable buyers to purchase a home with a deposit as low as 5% (or as low as 2% for the Family Home Guarantee) without being charged LMI.
Are low home loan rates important?
Having a lower interest rate on your home loan is important given interest is the biggest source of a home loan's costs, with the typical borrower paying hundreds of thousands in interest over the life of a loan. So naturally, a loan with a lower interest rate can save you a lot of money. Allow us to demonstrate.
How much can you save with lower rate?
The table below shows the difference in monthly repayments for various loan amounts, plus the total interest cost savings over the life of the loan (assuming a 30-year loan term).
| Loan amount | 5.00% | 5.50% | Monthly savings at 5.00% | Total savings at 5.00% |
| $300,000 | $1,610 | $1,703 | $92 | $33,444 |
| $400,000 | $2,147 | $2,271 | $123 | $44,593 |
| $500,000 | $2,684 | $2,838 | $154 | $55,740 |
| $700,000 | $3,757 | $3,974 | $216 | $78,037 |
Calculations made via Savings.com.au's Home Loan Comparison Calculator.
What affects your home loan rate?
- Whether you're on a fixed or variable rate: If interest rates are expected to go down in the coming months, fixed rates tend to be lower than variable rates, since on one would fix knowing they could instead borrow at a rate that's likely to be reduced. When rates are expected to go up, fixed rates are generally higher than variable.
- Loan to Value Ratio: High LVR loans generally have higher interest rates to compensate the lender for the perceived added risk.
- RBA cash rate: The Reserve Bank of Australia sets the rate banks charge when lending to one another. Variable home loan rates generally fluctuate directly in line with the cash rate while fixed rates tend to change based on the direction markets expect the cash rate to head in the near future.
- Fees: Some products have low rates but charge high fees. This is one of the reasons why it's so important to check the comparison rate as well as the advertised rate when comparing home loans.
How to find the cheapest or best home loan interest rate for you
Securing the lowest interest rate on a home loan is easier said than done, with the lowest rates typically reserved for borrowers with strong credit ratings and loan-to-value ratios (LVRs) of 60% or less.
You may also find the loans with the lowest interest rates don't particularly suit your needs or have the features and level of customer support that you're after.
For instance, the lowest-rate loan on the market might be a fixed-rate loan with limited features offered by a small regional bank. However, you might instead be after a variable-rate loan with an offset account from an online lender boasting the latest fintech tools (e.g. mobile apps, speedy loan application software).
With that in mind, here are a few things to consider when looking for a good home loan interest rate:
Look for a low comparison rate
A home loan comparison rate is a rate lenders are legally required to display alongside advertised interest rates on home loans to give borrowers a truer reflection of a loan's cost - taking things like fees and revert rates into account. They essentially make home loans easier to compare (hence the name). So seek out loans with low comparison rates because they're more likely to have a low interest rate and low fees.
Fixed, variable or split rate?
Think carefully about whether you want a fixed or variable interest rate - or even a split rate to give you a mix of both - because there are important pros and cons to both that should be considered:
Fixed rate pros:
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Peace of mind that your repayments won't increase over the fixed term
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Can generate big interest savings if you opt for a low fixed-rate ahead of large interest rate rises (Read more: The lucky ones that fixed)
Fixed rate cons:
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Could be stuck paying a higher rate than those on variable rates if you fix at the wrong time
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If you refinance or sell your home during the fixed-term, you face paying large break costs
Variable rate pros:
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Interest rate may fall in the event of an RBA cash rate reduction
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Generally more flexibility than a fixed-rate loan (e.g. can come with offset account, usually no limit to extra repayments)
Variable rate cons:
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Interest rate will rise in the even of an RBA cash rate increase
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Lender can increase your interest rate at their discretion (even without an RBA rate rise)
Principal & Interest or Interest Only
Interest-only loans allow you to make just interest payments on the loan for an agreed period as opposed to repaying the debt (the 'principal'). The repayments may be temporarily lower, but it'll mean your repayments are substantially higher when the interest-only period is up.
Are introductory rates worth it?
Some low rate loans have introductory rates, which charge a lower rate for short time (the honeymoon period) before reverting to a higher rate. Consider whether the interest savings generated during the introductory period are worth the cost of the higher revert rate at the end of it, or for that matter the hassle of having to refinance to a lower rate!
July Home Loan Market Update
It’s set to be a happy start to the new financial year for mortgage-holders, with the RBA widely expected to cut the cash rate by a further 0.25%.
The economic eggheads at each of the big four banks (CommBank, Westpac, NAB and ANZ) are all in agreement that the cash rate will fall to 3.60% on the 8th of July.
Meanwhile, financial markets have fully priced-in a cut this month, with the ASX RBA Rate Indicator putting expectations at 100% (as at 2 July).
Of course, nothing’s ever a certainty when it comes to the RBA - its Governor, Michelle Bullock, could well play party-pooper if she deems there’s not enough data to support the case for a cut.
But assuming the cut goes ahead, the average owner occupier home loan rate would likely fall to 5.50% p.a.
On the average $660,000 30-year home loan, that would see the minimum monthly repayment drop by about $100, saving the typical household $1,200 a year.
Tallied up with the February and May rate cuts, it’d be a saving of more than $300 per month, or $3,600 per year.
Sounds great, until you remember that even after those cuts, the typical household would still be paying $1,300 more per month than if they were on one of those 2% p.a. rates lenders were offering back in 2021. What a time that was!
Meanwhile, fixed rates continue to be cut as lenders price in the higher odds of further rate cuts in the future. Early this month, we saw ANZ cut fixed rates by up to 35 basis points.
We’re now starting to see 2- and 3-year fixed home loan rates that start with a ‘four’, with Regional Australia Bank, Bank Vic and Greater Bank recently joining the sub-4% club.
But with the RBA expected to drop the cash rate three to four more times over the next six months, it mightn’t be long until the typical variable rate starts with a ‘four’ - so think twice before you lock in.
Looking for a different type of home loan?
Finding a home loan can be a challenging. Different circumstances require different loans.
Home Loan Interest Rates in Australia
Like many other developed countries, interest rates in Australia are much higher now than they were during the pandemic, when many lenders were offering home loans for under 2.00% p.a.
Interest rates on home loans have generally followed the trajectory of the cash rate, which is set by the Reserve Bank of Australia (RBA). As the cash rate is increased, rates on loan products typically also increase, and the same relationship applies when the RBA cut rates. From April 2022 to November 2023, the cash rate went from 0.10% to 4.35%, which is the main reason why home loan rates went up so much. Forecasts on the future direction of the cash rate are mixed, with the RBA decisions largely dependent on economic factors such as inflation and unemployment.
Rate increases are not good news for borrowers, but good news for debt-free savers - vice versa for rate decreases.
Lenders tend not to waste any time in passing on the RBA's cash rate rises to mortgage rates, but some are offering much lower rates than others so there are still savings to be had.
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Home Loan FAQs
A home loan is a sum of money that's borrowed from a lender to finance the purchase of a home or investment property. The borrower repays this debt with interest in regular instalments over an agreed term, typically 25-30 years. To provide the lender with security, the property is held by the lender as collateral until the loan is paid off - an arrangement known as a mortgage.
The principal amount is the amount you borrow from the lender, and pay back over time - plus interest. Your repayments typically include both principal and interest payments (unless it's an interest-only loan).
- Make more frequent weekly or fortnightly repayments
- Make extra repayments
- Consider refinancing your home loan to a lower interest rate
- Consider an offset account
- Pay off the principal
Equity in a home is the difference between the value of your home and how much you owe on the mortgage. For example, if your property is worth $500,000 and you still owe $300,000, your equity is $200,000. Our equity calculator can help you work out how much equity you have in your property.
The home loan application process can be quite lengthy but isn't too complicated. It will generally involve the following steps:
- Save for a deposit
- Find your perfect home or getting pre-approval first
- Gather your required documents
- Compare home loan providers
- A preliminary assessment by the lender
- Submit your application to the lender
- The lender completes a property valuation
- The lender approves or rejects the loan
- The lender sends you an offer
- The loan is settled and the funds are advanced to you.
Read our home buying checklist for a complete breakdown of everything you need to know.
Fixing your home loan can be good for those who need cash flow certainty, which is why many investors and first-time buyers choose them. If interest rates are very low, locking in that low rate before they rise can be a good idea. However, that can also backfire if interest rates drop even further, as those changes only apply to variable home loans, not fixed home loans. It can also be harder to repay a fixed loan early as you will have to pay significant break costs for terminating the fixed-rate period.
If your current lender can't offer you what you need anymore, it may be time to refinance your home loan. Shop around and compare new home loans, calculate the costs of switching and consider the length of the new loan. Once you’ve found the ideal loan, apply through the lender and exit your old home loan.
A comparison rate helps you work out the true cost of a loan by combining the interest rate plus a number of fees and charges you can expect to pay over the life of the loan into a single percentage figure. If there is a big difference between the advertised rate and the comparison rate on a product, it probably means there are significant establishment or account-keeping fees.
How much you can borrow for a home loan will depend on many factors such as your income, your savings history, your monthly living expenses, and any outstanding debt you may have. However, it is generally recommended that you borrow no more than 80% of the value of the property, meaning you must have at least a 20% deposit saved. Use our calculator to work out how much you can borrow.
A redraw facility is a home loan feature that allows borrowers to withdraw extra repayments they have made on their home loan. Redraw facilities are useful if you want to reduce your loan amount as quickly as possible, while being able to access those funds at some point in the future should a financial emergency or other situation arises where you may need that money (like a renovation).
An offset account is a transaction account linked to your home loan where the money stored in the account is ‘offset’ against your home loan debt when interest is calculated, reducing the amount of interest charged on your loan.
To be eligible for a home loan, you must have:
- A deposit (at least 5%)
- A good credit history
- A stable income
- A regular savings history
- No significant debts
- At least two forms of identification, one of which must be photo ID
- Bank statements and payslips
- Council rates for any other properties you own
For other relevant documents, see the Home Loan's 101
The amount needed for a house deposit varies, but you'll usually need at least 5% of the property's value, which is an LVR (loan-to-value ratio) of 95%. To avoid paying Lenders Mortgage Insurance (LMI) most lenders will require you to provide a deposit of 20% of the property's value.
The time it takes for a lender to approve your home loan can differ from lender to lender, but it generally takes anywhere between four to six weeks. You can speed up your home loan approval by ensuring you meet all the borrowing criteria, have all your paperwork ready and correctly fill out the application form, have a good savings and credit history, and get pre-approval.
Home loan interest rates have risen, but still savings to be had
Interest rates may be significantly higher than they were a few years ago, but you may be able to give yourself a rate cut by refinancing to a better home loan deal.
As you can see from our comparison table, some lenders are offering home loans at much lower rates than others.
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