Data from the Australian Bureau of Statistics (ABS) found the total value of new loan commitments for housing rose 5.6% in the month to $24 billion, seasonally adjusted, an impressive 23.7% increase on November 2019. 

Buying a home or looking to refinance? The table below features home loans with some of the lowest variable interest rates on the market for owner occupiers.

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LenderHome LoanInterest 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 TagsFeaturesLinkComparePromoted ProductDisclosure
5.54% p.a.
5.58% p.a.
$2,852
Principal & Interest
Variable
$0
$530
90%
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 10% Min Deposit
  • Redraw
  • Extra Repayments
  • More details
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Quick and easy online application process.
Disclosure
5.49% p.a.
5.40% p.a.
$2,836
Principal & Interest
Variable
$0
$0
80%
  • Built and funded by CommBank
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 20% Min Deposit
  • Redraw
  • More details
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
 Disclosure
5.64% p.a.
5.89% p.a.
$2,883
Principal & Interest
Variable
$250
$250
60%
  • 100% offset
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 40% Min Deposit
  • Offset
  • Redraw
  • More details
  • Easy application. Fast approval. 100% offset.
  • Unlimited additional repayments free of charge.
  • Redraw available - Access additional payments.
 Disclosure
5.64% p.a.
5.89% p.a.
$2,883
Principal & Interest
Variable
$248
$350
60%
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 40% Min Deposit
  • Offset
  • Redraw
  • More details
  • Check your eligibility in as little as one minute
 Disclosure
Important Information and Comparison Rate Warning

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. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. 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 . View disclaimer.

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The sharp increase in commitments was driven largely by first home buyers, with commitments from the group rising 3.1% in November to 13,905, seasonally adjusted, a 42.5% rise since the start of the year. 

This is also the highest level of first home buyers seen since October 2009, when similar rapid growth occured due to the temporary tripling of the First Home Owner Grant (FHOG) as part of the government response to the Global Financial Crisis. 

ABS head of Finance and Wealth Amanda Seneviratne said the strong increases were also driven by the HomeBuilder scheme and commitments to existing dwellings. 

“Loan commitments for existing dwellings rose 5.9% and were the largest contributor to the rise in November’s owner occupier housing loan commitments," Ms Seneviratne said.

“The value of construction loan commitments grew 5.6% in November, rising 75% since July. This follows the implementation in June of the Government’s HomeBuilder grant in response to COVID-19.

“Other federal and state government incentives and ongoing low interest rates also contributed to the continuing growth in new housing loan commitments.”

lendindnov201

Source: ABS

Housing Industry Australia (HIA) economist, Angela Lillicrap said she expected construction loan activity to continue its strong growth into 2021. 

“The number of construction loans to owner occupiers in the three months to November was 83.7% higher than the same time last year," Ms Lillicrap said.

“HIA New Home Sales data suggests that detached housing finance approvals will continue to be strong over the coming months.

"The extension of HomeBuilder at the end of November is not a factor in this month’s result but will see the strength in housing finance data extend into 2021."

Victoria saw owner occupier home loan commitments rise sharply, up almost 20% in November, sesonally adjusted, mostly due to increased commitments for vehicles. 

Commitments to vehicles also saw a strong increase in commitments for fixed term personal finance, up 13.2%. 

Investor housing commitment also saw a strong increase in November, up 6% to reach $5.6 billion. 

“Investors are returning to the market, with the value of lending to investors up by 3.7% for the three months to November 2020 compared to the same time last year. This was driven by loans for the purchase of existing dwellings," Ms Lillicrap said.

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