Your home loan interest rate options

RateCity StaffJul 1, 2009( 1 min read )

Home Loans

The fixed versus variable home loan debate

Choosing between variable, fixed and split rate home loans can be like engaging in the chance game of paper, rocks, scissors. Choosing your opponents next move can be just as hard as trying to predict the property market and interest rate changes.

Apr 10, 2017( 5 min read )

Home Loans

Should you buy a property with friends?

With the house prices on the rise, many Australians are turning to sharing a mortgage in an effort to get on the property ladder. For many, it’s a boost onto the property ladder, opening up a wider housing market and reducing the initial financial burden, but it’s important to beat in mind that there are some risks which could leave you caught out.

Oct 4, 2016( 3 min read )

Home Loans

Five tips for refinancing your home loan

Refinancing a mortgage can be a great way to refresh your finances to better suit your current lifestyle.

Nov 28, 2016( 7 min read )

Home Loans

Will US rate rises affect Australia?

Last night’s meeting of the US Federal Reserve increased America’s benchmark interest rate from 0.75% to 1%. Leading up to this widely-forecast increase, finance industry experts predicted that rising US interest rates may influence Australia and other countries where lenders could struggle with increased overseas funding costs, and raise their own interest rates to compensate.

Mar 15, 2017( 2 min read )

If you’re in the market for a home loan, you will have four interest rate options to choose from:

Introductory rate, also known as a “honeymoon rate”
Fixed rate
Variable rate; or
Split loan (a combination of fixed and variable rates)

To help you find the home loan type for your purposes it’s important to clearly understand and identify your needs.

There may be some product features you would like, but they come at an additional cost. The home loan interest rate you choose may permit your from making additional repayments with penalties.

This is the common setback with fixed rate loans so consider the benefits you will receive and how much it will cost you if you plan to pay back your loan early.

By keeping track of interest rates on RateCity.com.au, you will be able to find the best market rates available daily.

The table to the right shows today’s best home loan interest rates, ranked by lowest variable rate loans.

Related search: Low rate variable mortgages.

RateCity Staff

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Today's top home loans products

Discount Offer Variable Home Loan OO P&I ($200k+)

Real Time Rating™

4.20 / 5

Advertised Rate

Comparison Rate*

2.59%

Variable

2.59%

No upfront or ongoing fees
Extra repayments + redraw services
Free redraw facility
Repayments may decrease if RBA cuts rates

View Now

Home Value Home Loan (Principal and Interest)

Real Time Rating™

4.10 / 5

Advertised Rate

Comparison Rate*

2.65%

Variable

2.66%

special

Get a low variable interest rate loan with no ongoing fees. Plus you can make extra repayments and free redraw online.

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Premium Package Home Loan (LVR < 80%)

Real Time Rating™

3.38 / 5

Advertised Rate

Comparison Rate*

3.05%

Variable

3.38%

No upfront fees
100% full offset account
Extra repayments + redraw services
Free redraw facility

View Now

Real Deal Variable Home Loan Special (Principal and Interest) (LVR < 90%)

Real Time Rating™

3.77 / 5

Advertised Rate

Comparison Rate*

2.94%

Variable

2.98%

No upfront or ongoing fees
Extra repayments + redraw services
Repayments may decrease if RBA cuts rates

View Now

FAQs

Tip: You can use RateCity how much can I borrow calculator to get a quick answer.

How much money you can borrow for a home loan will depend on a number of factors including your employment status, your income (and your partner’s income if you are taking out a joint loan), the size of your deposit, your living expenses and any other debt you might hold, including credit cards.

A good place to start is to work out how much you can afford to make in monthly repayments, factoring in a buffer of at least 2 – 3 per cent to allow for interest rate rises along the way. You’ll also need to factor in additional costs that come with purchasing a property such as stamp duty, legal fees, building inspections, strata or council fees.

If you are planning on renting the property, you can factor in the expected rental income to help offset the mortgage, but again it’s prudent to add a significant buffer to allow for rental management fees, maintenance costs and short periods of no rental income when tenants move out. It’s also wise to factor in changes in personal circumstances – the typical home loan lasts for around 30 years and a lot can happen between now and then.

Your home loan interest rate options

Related articles

The fixed versus variable home loan debate

Should you buy a property with friends?

Five tips for refinancing your home loan

Will US rate rises affect Australia?

Share this article

Popular home loans searches

Today's top home loans products

Discount Offer Variable Home Loan OO P&I ($200k+)

Home Value Home Loan (Principal and Interest)

Premium Package Home Loan (LVR < 80%)

Real Deal Variable Home Loan Special (Principal and Interest) (LVR < 90%)

FAQs