It saves to compare home loans

Whether you are a first-time buyer looking for a home loan, or looking to refinance your existing mortgage, you'll find it easier to discover the best home loan products for your circumstances by shopping around and comparing multiple products.

Shopping around for the lowest interest rate on home loans using comparison websites is a great way to begin; consider the various home loan products from banks, credit unions and building societies, such as variable and fixed rate home loans or split and package loans.

Variable rate home loans

Variable home loans are the most popular type of loan in Australia, but that doesn’t necessarily mean they are the best mortgage product for you. With this type of loan, your lender determines the rate of interest you will pay – if the lender increases rates, your repayments will also rise. Likewise, if rates fall, so too do your repayments.

Fixed rate home loans

If you’re looking for financial peace of mind, then perhaps a fixed rate loan is the best mortgage product for you. Fixed mortgages will typically have a set rate of interest for an agreed period of between one and five years (or more), and the rate never changes. This is ideal for those who think they may struggle with repayments should variable interest rates climb. The disadvantage with fixed rate home loans is they generally lack the flexibility of a variable home loan.

Split loan

A split loan is one of the best mortgage products for those who can’t decide on a variable or fixed rate mortgage. These home loans are part fixed and part variable and it doesn’t matter which way interest rates move, you’ll win a bit and lose a bit either way.

‘Package’ loans

For those looking to secure the best mortgage products that also incorporate other financial products, consider the ‘package’ loan option. By bundling together a variety of financial products such as a home loan, transaction account and credit card with a single institution, you could save significantly overall. Often lenders will offer a significant discount off the standard variable rate, with an overall annual fee that covers several products (the savings and fees will depend on the lender).  

To get a better understanding of the costs associated with home loans, try using our home loans calculator or compare home loans online today for some of the best mortgage products available.

This is an information service. By browsing on the website and/or using our search tools, you are asking RateCity to provide you with information about products from multiple financial institutions. We will try to show you a range of products in response to your request for information. The search results do not include all providers and may not compare all features relevant to you, for further details refer to our FSCG. The rating shown is only one factor to take into account when considering these products. See the rating methodology. We are not a credit provider, and in giving you product information we are not making any suggestion or recommendation to you about a particular credit product. If you decide to apply for a product, you will deal directly with a financial institution, and not with RateCity. Rates and product information should be confirmed with the relevant financial institution, and you should review the PDS before you decide to purchase. See our terms of use for further details. This advice is general and has not taken into account your objectives, financial situation or needs. Consider whether this advice is right for you.