Lender

Variable
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  • Min 30% deposit
  • No monthly or ongoing fees, add 0.10% for offset
  • Unlimited redraws

Variable Home Loan (LVR < 70%)

  • Min 30% deposit
  • No monthly or ongoing fees, add 0.10% for offset
  • Unlimited redraws
Variable
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REFINANCE ONLY
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
REFINANCE ONLY

Variable Rate Home Loan – Refinance Only

  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Variable
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100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES
  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
Variable
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AN EASY DIGITAL APPLICATION
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
AN EASY DIGITAL APPLICATION

Neat Variable Home Loan (Principal and Interest) (LVR < 60%)

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
Variable
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QLD/NSW/VIC/SA METRO & INNER REGIONAL AREAS
QLD/NSW/VIC/SA METRO & INNER REGIONAL AREAS

Variable Home Loan (Principal and Interest)

  • $5000 Cashback. T&Cs Apply.
Variable
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100% FULL OFFSET ACCOUNT
100% FULL OFFSET ACCOUNT

Offset Package Home Loan (Principal and Interest) (LVR < 60%)

  • $5000 Cashback. T&Cs Apply.
Variable
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100% FULL OFFSET ACCOUNT
100% FULL OFFSET ACCOUNT

Ocean Owner Occupied (Amounts < $1m, LVR < 60%)

  • $5000 Cashback. T&Cs Apply.
Variable
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NO UPFRONT OR ONGOING FEES
NO UPFRONT OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 80%)

  • $5000 Cashback. T&Cs Apply.
Variable
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NO ONGOING FEES
NO ONGOING FEES

Yard PAYG Home Loan (Principal and Interest) LVR ≤ 80%

  • $5000 Cashback. T&Cs Apply.
Variable
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UNLIMITED EXTRA REPAYMENTS
UNLIMITED EXTRA REPAYMENTS

Basic Home Loan (Principal and Interest) (LVR < 60%)

  • $5000 Cashback. T&Cs Apply.
Variable
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EASY DIGITAL APPLICATION
EASY DIGITAL APPLICATION

Neat Variable Home Loan (Principal and Interest) (LVR 70%-80%)

  • $5000 Cashback. T&Cs Apply.
Variable
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GREAT FLEXIBLE LOAN OPTIONS
GREAT FLEXIBLE LOAN OPTIONS

Basic Home Loan (Principal and Interest) (LVR 70%-80%)

  • $5000 Cashback. T&Cs Apply.
Variable
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UNLIMITED REDRAWS
UNLIMITED REDRAWS

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • $5000 Cashback. T&Cs Apply.
Variable
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ZERO APPLICATION FEESFEE FREE OFFSET
ZERO APPLICATION FEESFEE FREE OFFSET

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • $5000 Cashback. T&Cs Apply.
Variable
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NO UPFRONT OR ONGOING FEES
NO UPFRONT OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 95%)

  • $5000 Cashback. T&Cs Apply.
Variable
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Smart Home Loan (Principal and Interest) (LVR < 80%)

  • $5000 Cashback. T&Cs Apply.
Variable
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Standard Variable Home Loan (Principal and Interest) (LVR > 80%)

  • $5000 Cashback. T&Cs Apply.
Variable
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Tailored Home Loan (Principal and Interest)

  • $5000 Cashback. T&Cs Apply.
Variable
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  • Low rate home loan with added benefits, add offset for 0.10%
  • Save thousands & make an environmentally conscious choice on your loan for homes less than 12 months old
  • Get a 7.0 star NatHERS rating or higher for up to 1.59% discount on your variable rate home loan T&Cs apply

Green Home Loan (Principal and Interest)

  • Low rate home loan with added benefits, add offset for 0.10%
  • Save thousands & make an environmentally conscious choice on your loan for homes less than 12 months old
  • Get a 7.0 star NatHERS rating or higher for up to 1.59% discount on your variable rate home loan T&Cs apply
Fixed
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USE A MARKET LEADING APP TO HELP YOU PAY OFF YOUR LOAN SOONER
  • Make up to $20,000 additional repayments per fixed term
  • Redraw available – lets you access any extra loan repayments you’ve made
  • Choose to rate lock for 90 days (fee applies)
USE A MARKET LEADING APP TO HELP YOU PAY OFF YOUR LOAN SOONER

Own Home Loan Fixed (Principal and Interest) 1 Year (LVR < 80%)

  • Make up to $20,000 additional repayments per fixed term
  • Redraw available – lets you access any extra loan repayments you’ve made
  • Choose to rate lock for 90 days (fee applies)

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%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *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. Rates correct as of August 11, 2022. View disclaimer.

Home loan lender Reviews

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What is a home loan and how does it work?

A home loan or mortgage is a type of loan where real estate is used as the collateral. A home loan is used to finance the purchase of a home or investment property so you don't need to pay the entire amount upfront. The borrower then makes monthly repayments, with interest and principal, over a period of time usually between 25-30 years.

Dominic Beattie

Dominic Beattie

Editor

Home loan interest rates are rising, but still savings to be had

Interest rate rises are coming thick and fast, 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 still offering home loans at affordable rates. 

How can you save money on a home loan?

Australia’s competitive home loan market gives borrowers the freedom to shop around for better deals. Whether you're a first time buyer or an investor, borrowers should take advantage of the current historically low interest rates. Even a slightly lower interest rate could save you thousands over the life of your loan.

Are low interest rates important?

Let’s take one of the cheapest home loan rates in these tables and round it to 2.50%. Now let’s add an extra 1% to this home loan rate to get a home loan at 3.50%. This might seem high considering some of the rates seen here, but the reality is a lot of people are stuck on mortgages with rates even higher than this, and many don’t even realise it. And this extra 1% can make a huge difference. 

Let’s compare two 30-year home loans, at 2.50% p.a. and 3.50% p.a. Neither home loan has an introductory rate or upfront or ongoing fees. The table below shows the difference in monthly repayments for various loan amounts.

Loan amount 2.50% 3.50% Monthly savings at 2.50% Total savings at 3.50%
$300,000 $1,185.36 $1,347.13 $161.77 $58,238.52
$400,000 $1,580.48 $1,796.18 $215.7 $77,649.22
$500,000 $1,975.60 $2,245.22 $269.62 $97,062.85
$700,000 $2,765.85 $3,143.31 $377.46 $135,889.13

Calculations made via Savings.com.au's Home Loan Comparison Calculator.

The more you borrow the more you pay in interest, and even a small difference in interest rates can add extra tens of thousands if not hundreds of thousands to the overall cost of your home loan.


How to find a good home loan interest rate

If you are willing to switch or are just entering the market, then articles such as this one would be a good place to start. And if this isn’t doing it for you, a quick five-minute Google search unveils an entire world of information at your fingertips.

If you don’t have the time or don’t trust yourself to find a good home loan, then a mortgage broker can do that for you. Bear in mind they might not necessarily get you the lowest rate on the market, but can guide you through the home buying process more quickly and more efficiently. 

If you do decide to go it alone, here are a few things to look for in a home loan interest rate: 

  • Does it have an introductory rate? Many ‘low rate’ loans actually have introductory rates with higher revert rates 
  • If it’s a fixed rate, what’s the break cost? Refinancing from a fixed rate home loan can be expensive, so check the fees on the loan before committing 
  • What are the fees in general? A low advertised rate can have a high comparison rate, due to high ongoing and upfront fees
  • Can you make extra or more frequent repayments? Making home loan repayments more frequently can shave thousands of dollars off your overall loan cost
  • Is it interest-only? Interest-only loans can be much cheaper to start with, but once the interest-only period ends repayments can skyrocket.

How long will low interest rates remain?

Don’t expect Australia’s cash rate to reach those lofty heights of 5% or higher anytime soon, however interest rates are going up.

The Reserve Bank of Australia has forecast a cash rate of 2-point-something per cent over the next couple years.

A cash rate in the mid-2% range is considered a 'neutral' rate that favours neither economic growth nor economic contraction.

The RBA calculated Aussies are generally well-placed to withstand two percentage points of mortgage rate increases.

However SQM Research Managing Director Louis Christopher said there could be problems should home loan rates hit 7%.

Some types of mortgage rates are already higher than they were in 2019, despite the RBA cash rate still being lower.


What’s happening with interest rates?

The Reserve Bank has begun its tightening cycle, which means the cash rate is going up.

It's forecast to hit nearly 2.50% by the end of 2023, and some economists have forecast rates nearing 3.00%.

This is after record low interest rates, hitting rock bottom at 0.10% in November 2020.

Rate increases are not good news for borrowers, but good news for savers.

Lenders have wasted no time in hiking mortgage rates, but there are still some competitive deals to be found - a handful still have rates under 2%.

What to do if your bank is not reducing interest rates?

Despite the cash rate going up and home loan interest rates following, there are still competitive deals to be found.

If your lender no longer offers a satisfactory rate, you could consider refinancing to a different lender. There are many, many lenders on the market these days, and with rates still low in the grand scheme of things, there’s plenty of competition among lenders for your business.

Refinancing your home loan to a lower interest rate could save you hundreds of dollars a year and tens of thousands over the life of your loan.


Frequently Asked Questions

  1. Make more frequent weekly or fortnightly repayments
  2. Make extra repayments
  3. Consider refinancing your home loan to a lower interest rate
  4. Consider an offset account
  5. Pay off the principal

Most home loan terms are between 25-30 years but a handful of lenders in Australia offer loan terms of up to 40 years.

A credit rating is a numerical score that represents your trustworthiness as a borrower. The higher the score, the more trustworthy a borrower looks to a lender. Your credit score can determine how much a lender is willing to lend you for a home, what interest rate to charge you, and whether you can afford to meet your repayments.

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:

  1. Save for a deposit
  2. Find your perfect home or getting pre-approval first
  3. Gather your required documents
  4. Compare home loan providers
  5. A preliminary assessment by the lender
  6. Submit your application to the lender
  7. The lender completes a property valuation
  8. The lender approves or rejects the loan
  9. The lender sends you an offer
  10. 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 combing 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.

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
  • Other relevant documents, such as the First Home Owner Grant

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.

A mortgage default (missing a repayment by 90 days) won't bankrupt you but will require you to pay a late fee up to $200. This may seem relatively minor, but defaulting on your mortgage will also be recorded on your credit file, damaging your credit score.

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.

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