Locating the best home loan rates


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Nov 10, 2011( 2 min read )

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Getting the top home loan rate for your home loan can be a tiring task – researching different lenders, talking to them and comparing interest rates can be a real time killer. But it doesn’t have to be so hard, particularly when you can easily compare home loans from the comfort of your lounge room.

What is the top home loan rate?

The best interest rate for you will depend on several factors, such as the length of you home loan, whether you want a variable, fixed or split home loan, how much your home loan is and how much of a deposit you have.

Ultimately, getting the top home loan rate means paying as little interest as possible, and therefore paying less for your home loan.

The savings

A small difference in the interest you pay for your home loan can make a big difference to the total amount you end up paying.

Take for instance, a $350,000 home loan paid over 30 years. Assuming the rate of interest remains steady at 7 percent per annum, you’ll pay more than $480,000 in interest over the life of the loan. Switch to a rate of say, 6.5 percent, and you’ll likely reduce your monthly repayments by around $100 and reduce the total interest paid by around $30,000. Of course, variable rate change and so this is simply a guide.  

To get a better idea of the savings you could make by switching to the top home loan rate from your current rate, try using RateCity’s home loans calculator.

Tips on how to get a top home loan rate

There are several ways you can ensure you get the best interest rate for your circumstances. Here are some of our favourites:

Use your bargaining power to negotiate a better interest rate – you may not even need to switch lenders to get a better rate. Ask your lender today what they can do for you.

  • Having a good credit history will also help you score a top home loan rate as it means lenders will look upon you as a solid applicant who will pay their mortgage on time.
  • Have a good-sized deposit. It shows lenders you can save a large sum of money and be more financially reliable.
  • Compare home loans online using financial comparison sites such as RateCity.
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^Words such as "top", "best", "cheapest" or "lowest" are not a recommendation or rating of products. This page compares a range of products from selected providers and not all products or providers are included in the comparison. There is no such thing as a 'one- size-fits-all' financial product. The best loan, credit card, superannuation account or bank account for you might not be the best choice for someone else. Before selecting any financial product you should read the fine print carefully, including the product disclosure statement, fact sheet or terms and conditions document and obtain professional financial advice on whether a product is right for you and your finances.

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