Compare some of Australia's best mortgage rates
Everyone's home loan needs are different, so it's important to compare the best home loans for you. Find your best mortgage by searching and comparing home loans from over 100 mortgage providers, with home loans from 1.69% (comparison rate* 3.49%). There is no single best home loan as everyone’s needs are different. Use filters to improve your results.
Smart Booster Home Loan Discounted Variable - 1yr
special1.99% variable rate for 12 months then 2.48% variable rate
Interest rates ranked in the best 20%
No ongoing fees
based on $300,000 loan amount for 25 years at 1.99%
p.a Intro 12 months
Borrow up to 80%
The 12-month interest rate discount could give you more breathing room in your household budget, or make a head start on paying off your home sooner.
Winner of Best refinance home loan, Best variable, RateCity Gold Awards 2021
p.a Fixed - 3 years
Borrow up to 70%
Go to site
Owner occupiers with deposits of 30% or more can lock in a low fixed rate for three years, with no ongoing fees.
p.a Fixed - 3 years
Borrow up to 80%
Fix the interest rate on your owner occupier home loan for up to three years and pay no ongoing fees.
p.a Fixed - 2 years
Borrow up to 80%
Go to site
Homeowners may lock in a competitive interest rate for two years and enjoy access to features like a 100% offset account.
Borrow up to 80%
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Is it possible to refinance with late mortgage payments?
There are many reasons to refinance a home loan. They may include switching to a lower interest rate, consolidating multiple debts into a single loan, leveraging the equity in your home, or accessing flexible payment terms. Refinancing might also be a viable solution to help you manage your mortgage if you fall behind on your repayments. Lenders will decide if they’ll allow your loan to be refinanced under these circumstances on a case-to-case basis. However, there are other steps you could take before refinancing a mortgage in arrears, such as reassessing your overall finances and speaking to your current lender.
Who offers the best home loan?
Finding the best home loan isn’t as easy as it sounds. The best home loan for one person may not be the best for the next person. It’s important to look for the home loan that's "best" for your personal financial situation, where you can fulfil the eligibility criteria and also comfortably afford the repayments.
For example, the big four banks offer home loans with features and benefits that could suit a variety of different borrowers, including branch access and other bundled financial services. Smaller online-only non-bank lenders may offer home loans with lower interest rates, resulting in more affordable mortgage repayments, but these lenders may only operate online or over the phone, and only offer home loans.
How do I decide which is the best mortgage for me?
Want to know how to get a home mortgage? There are several questions to consider when weighing up home loan options to find the right one for you:
- How long will I need to take out a home loan for?
- What are the best home loan rates? Are they fixed or variable rates?
- What will my mortgage repayments be? Can I make additional repayments?
- Are there any added fees to include in my calculations?
- Can I sustain a good lifestyle while paying off this mortgage?
Remember that while advice on the best home loans from friends and family might be useful, it shouldn't alone be the sole basis of your home loan decision. Everyone is different, which is why making your mortgage comparison to find the best home loan rates for your finances is so important.
Top mortgage factors to consider
When looking for the most suitable mortgage for your needs, here are a few of the factors to keep in mind:
Fixed or variable interest rate?
Before you start looking for the best mortgage interest rates, decide whether you're interested in a variable or fixed interest rate. Keep in mind that the best home loan rates for your finances may not necessarily be the lowest rates available.
Variable rate home loans
Most mortgages are based on a variable interest rate that will fluctuate over time, often in line with the Reserve Bank of Australia cash rate. If rates rise, so will your mortgage repayments, but if your bank passes on a rate cut, you could find yourself paying less interest on your home loan.
Fixed rate home loans
Some mortgages allow you to lock in a low fixed interest rate for a period of time, keeping your budgeting consistent to help you plan your future repayments. While this could see you miss out on some savings if mortgage rates were to fall, you'd also be protected from higher repayments if home loan rates were to rise.
What is the average interest rate for a home loan?
When you're comparing home loan interest rates, finding a baseline average can help you better understand which home loans charge low or high interest.
Because mortgage rates change regularly, vary widely based on loan type, and aren't always available to all types of borrowers (e.g. low owner-occupier home loan rates aren't available to investors), the average of all home loan interest rates in the market rarely stays the same for very long.
The Reserve Bank of Australia (RBA) keeps track of average home loan interest rates in Australia. This can help you get a better idea of what to expect when you’re comparing different home loan offers.
Remember that there’s more to a home loan than just its interest rate. Even if a home loan has a higher than average interest rate, if it also offers features and benefits that suit your needs, it may still be a better choice than some home loans with cheaper interest rates. Compare different home loan options to learn more before you apply.
Finding the lowest interest rates
Once you've decided on which type of loan you would like, it's time to start comparing home loan interest rates to find the lowest mortgage rates in Australia. It's important to keep in mind that the lowest current mortgage rates aren't necessarily the best mortgage rates for all borrowers, as they may require borrowers to fulfil specific terms and conditions.
How large is your home loan deposit?
Many of the lowest rates on the market are available only to borrowers who can afford a large deposit, often 20% or more of the property value. This is because the higher the deposit a borrower can afford, the less of a risk they represent to a lender.
Some home loans are available with smaller minimum deposits, such as 10% or even 5% of the property value, though these loans will likely require you to pay a higher interest rate, and as well as Lender's Mortgage Insurance (LMI).
Are you an owner-occupier or an investor?
The interest rate on your home loan may also partially depend on whether you're planning to live in the property you buy as an owner-occupier, or rent it out as an investor.
Due to the higher average risk of payment defaults, as well as government regulations, lenders generally charge higher interest rates for investor home loans than they do for owner occupier home loans.
Customising your home loan search using RateCity's comparison tools can help you to compare mortgages that more closely match your circumstances, and determine which are the best home loan rates for your unique household.
Looking at home loan fees
Another consideration when looking for the best home loans in Australia is finding out what fees will be charged.
There are many different types of fees to be aware of when looking for the cheapest home loan for your needs. These can include:
- Establishment fees
- Settlement fees
- Fees for using features such as an offset account of redraw facility, and;
- Fees associated with making extra repayments.
Unfortunately, this doesn't cover the whole range of home loan fees out there that can be charged by different lenders, so when looking for the best mortgage for your needs, it's essential to thoroughly research potential loan options and enquire about what fees will be charged.
It is possible to find cheap home loans that charge relatively little to no fees, so don't feel obliged to pay thousands in unnecessary costs.
You can also often negotiate with a lender when refinancing or taking out a new loan to waive some of the upfront costs - if a lender wants your business, they may be willing to offer a discount to keep you happy.
For this reason, the best home loan rates for your needs may not necessarily be exactly what's advertised online, but may be arranged by contacting a lender and/or a mortgage broker.
How do I find and compare the top home loans on RateCity?
Comparing home loans can seem challenging, but there are ways to make it easier. Using a comparison website like RateCity, you can compare a variety of home loan options side by side, and see which home loan interest rates, fees, features and benefits may best suit your needs.
For a faster and simpler way to compare the top home loan on RateCity, you can start be checking their Real Time Ratings™. These star ratings are based on a combination of a loan’s overall cost (including interest and fees) and the flexibility offered by its features and other benefits. Real Time Ratings™ are updated every day, to reflect changes to interest rates and features from banks and lenders.
To narrow down your search to just the top home loans in a category, you can check out the RateCity Home Loan Leaderboards. These collect the top-rated home loans on RateCity each day, and are updated when there are changes to the Real Time Ratings™.
If a mortgage offer stays on the Home Loan Leaderboards for six months or more, to becomes eligible for the coveted RateCity Gold Award. If you see this gold badge on a home loan offer, you can be confident it’s one of the top-rated products in its category on RateCity.
Are the best home loans from banks or non-bank mortgage lenders?
One of the simplest ways to apply for a home loan is to visit your current bank, and find out what they can offer their customers. Some advantage of getting a home loan from your bank is that they already know your details, which can help simplify the application process, and you should already have a good idea of what level of customer service they provide.
However, your bank may not be the best bank for you to get a home loan from. They may charge higher interest rates or fees than you could comfortably afford, or may not offer the mortgage features that you’re interested in. Some of the best bank home loans may come from other banks, who offer more competitive home loan interest rates, lower fees, or features and benefits that better suit your financial situation.
It’s often a good idea to compare home loan options from a variety of different banks and non-bank lenders before you apply for a mortgage. Non-bank mortgage lenders can include credit unions, building societies and mutual banks. Some of these lenders offer low interest rates and low fees on their home loans in order to complete with the bigger banks.
There are also online-only lenders and fintechs, which let you manage you money and your home loan from a smartphone app. Online-only lenders may be able to offer even lower rates and fees, as they don’t have to manage the ongoing expenses a network of offices or bank branches. Of course, this also means you wouldn’t have the option of meeting a banker in person at a branch, so consider whether this is important to you before you apply.
Sally is the Research Director for RateCity and a regular commentator on television and radio about personal finance matters. She is passionate about helping everyday Australians get access to affordable finance options, and helping people save money through smart budgeting and easing everyday expenses. Sally is a contributor to news outlets including Fairfax, News Ltd and Money Magazine, among others.
Today's top home loans
Frequently asked questions
Who has the best home loan?
Determining who has the ‘best’ home loan really does depend on your own personal circumstances and requirements. It may be tempting to judge a loan merely on the interest rate but there can be added value in the extras on offer, such as offset and redraw facilities, that aren’t available with all low rate loans.
To determine which loan is the best for you, think about whether you would prefer the consistency of a fixed loan or the flexibility and potential benefits of a variable loan. Then determine which features will be necessary throughout the life of your loan. Thirdly, consider how much you are willing to pay in fees for the loan you want. Once you find the perfect combination of these three elements you are on your way to determining the best loan for you.
I can't pick a loan. Should I apply to multiple lenders?
Applying for home loans with multiple lenders at once can affect your credit history, as multiple loan applications in short succession can make you look like a risky borrower. Comparing home loans from different lenders, assessing their features and benefits, and making one application to a preferred lender may help to improve your chances of success
Which mortgage is the best for me?
The best mortgage to suit your needs will vary depending on your individual circumstances. If you want to be mortgage free as soon as possible, consider taking out a mortgage with a shorter term, such as 25 years as opposed to 30 years, and make the highest possible mortgage repayments. You might also want to consider a loan with an offset facility to help reduce costs. Investors, on the other hand, might have different objectives so the choice of loan will differ.
Whether you decide on a fixed or variable interest rate will depend on your own preference for stability in repayment amounts, and flexibility when it comes to features.
If you do not have a deposit or will not be in a financial position to make large repayments right away you may wish to consider asking a parent to be a guarantor or looking at interest only loans. Again, which one of these options suits you best is reliant on many factors and you should seek professional advice if you are unsure which mortgage will suit you best.
How can I negotiate a better home loan rate?
Negotiating with your bank can seem like a daunting task but if you have been a loyal customer with plenty of equity built up then you hold more power than you think. It’s highly likely your current lender won’t want to let your business go without a fight so if you do your research and find out what other banks are offering new customers you might be able to negotiate a reduction in interest rate, or a reduction in fees with your existing lender.
What is the best interest rate for a mortgage?
The fastest way to find out what the lowest interest rates on the market are is to use a comparison website.
While a low interest rate is highly preferable, it is not the only factor that will determine whether a particular loan is right for you.
Loans with low interest rates can often include hidden catches, such as high fees or a period of low rates which jumps up after the introductory period has ended.
To work out the best value for money, have a look at a loan’s comparison rate and read the fine print to get across all the fees and charges that you could be theoretically charged over the life of the loan.
How do I apply for a home improvement loan?
When you want to renovate your home, you may need to take out a loan to cover the costs. You could apply for a home improvement loan, which is a personal loan that you use to cover the costs of your home renovations. There is no difference between applying for this type of home improvement loan and applying for a standard personal loan. It would be best to check and compare the features, fees and details of the loan before applying.
Besides taking out a home improvement loan, you could also:
- Use the equity in your house: Equity is the difference between your property’s value and the amount you still owe on your home loan. You may be able to access this equity by refinancing your home loan and then using it to finance your home improvement. Speak with your lender or a mortgage broker about accessing your equity.
- Utilise the redraw facility of your home loan: Check whether the existing home loan has a redraw facility. A redraw facility allows you to access additional funds you’ve repaid into your home loan. Some lenders offer this on variable rate home loans but not on fixed. If this option is available to you, contact your lender to discuss how to access it.
- Apply for a construction loan: A construction loan is typically used when constructing a new property but can also be used as a home renovation loan. You may find that a construction loan is a suitable option as it enables you to draw funds as your renovation project progresses. You can compare construction home loans online or speak to a mortgage broker about taking out such a loan.
- Look into government grants: Check whether there are any government grants offered when you need the funds and whether you qualify. Initiatives like the HomeBuilder Grant were offered by the Federal Government for a limited period until April 2021. They could help fund your renovations either in full or just partially.
How do you determine which home loan rates/products I’m shown?
When you check your home loan rate, you’ll supply some basic information about your current loan, including the amount owing on your mortgage and your current interest rate.
We’ll compare this information to the home loan options in the RateCity database and show you which home loan products you may be eligible to apply for.
Does the Home Loan Rate Promise apply to discounted interest rate offers, such as honeymoon rates?
No. Temporary discounts to home loan interest rates will expire after a limited time, so they aren’t valid for comparing home loans as part of the Home Loan Rate Promise.
However, if your home loan has been discounted from the lender’s standard rate on a permanent basis, you can check if we can find an even lower rate that could apply to you.
What are the responsibilities of a mortgage broker?
Mortgage brokers act as the go-between for borrowers looking for a home loan and the lenders offering the loan. They offer personalised advice to help borrowers choose the right home loan for their needs.
In Australia, mortgage brokers are required by law to carry an Australian Credit License (ACL) if they offer credit assistance services. Which is the legal term for guidance regarding the different kinds of credit offered by lenders, including home loan mortgages. They may not need this license if they are working for an aggregator, for instance, as a franchisee. In both these situations, they need to comply with the regulations laid down by the Australian Securities and Investments Commission (ASIC).
These regulations, which are stipulated by Australian legislation, require mortgage brokers to comply with what are called “responsible lending” and “best interest” obligations. Responsible lending obligations mean brokers have to suggest “suitable” home loans. This means loans that you can easily qualify for, actually meet your needs, and don’t prove unnecessarily challenging for you.
Starting 1 January 2021, mortgage brokers must comply with best interest obligations in addition to responsible lending obligations. These require mortgage brokers to act in the best interest of their customers and also requires them to prioritise their customers’ interests over their own. For instance, a mortgage broker may not recommend a lender who gives them a commission if that lender’s home loan offer does not benefit that particular customer.
How do I apply for Westpac’s first home buyer loan?
If you’re a first home buyer looking to apply for a home loan with Westpac, they offer an online home loan application. They suggest the application can be completed in about 20 minutes. Based on the information you provide, Westpac will advise you the amount you can borrow and the costs associated with any possible home loan.
When applying for a home loan with Westpac, you’re assigned a home finance manager who can address your concerns and provide information. The manager will also offer guidance on any government grants you may be eligible for.
Can I take a personal loan after a home loan?
Are you struggling to pay the deposit for your dream home? A personal loan can help you pay the deposit. The question that may arise in your mind is can I take a home loan after a personal loan, or can you take a personal loan at the same time as a home loan, as it is. The answer is that, yes, provided you can meet the general eligibility criteria for both a personal loan and a home loan, your application should be approved. Those eligibility criteria may include:
- Higher-income to show repayment capability for both the loans
- Clear credit history with no delays in bill payments or defaults on debts
- Zero or minimal current outstanding debt
- Some amount of savings
- Proven rent history will be positively perceived by the lenders
A personal loan after or during a home loan may impact serviceability, however, as the numbers can seriously add up. Every loan you avail of increases your monthly installments and the amount you use to repay the personal loan will be considered to lower the money available for the repayment of your home loan.
As to whether you can get a personal loan after your home loan, the answer is a very likely "yes", though it does come with a caveat: as long as you can show sufficient income to repay both the loans on time, you should be able to get that personal loan approved. A personal loan can also help to improve your credit score showing financial discipline and responsibility, which may benefit you with more favorable terms for your home loan.
Can first home buyers apply for an ING home loan?
First home buyers can apply for an ING home loan, but first, they need to select the most suitable home loan product and calculate the initial deposit on their home loan.
First-time buyers can also use ING’s online tool to estimate the amount they can borrow. ING offers home loan applicants a free property report to look up property value estimates.
First home loan applicants struggling to understand the terms used may consider looking up ING’s first home buyer guide. Once the home buyer is ready to apply for the loan, they can complete an online application or call ING at 1800 100 258 during regular business hours.
How can I apply for a first home buyers loan with Commonwealth Bank?
Getting a home loan requires planning and research. If you are considering a home loan with the Commonwealth Bank, you can find the information you need in the buying your first home section of the bank’s website.
You can see the steps you should take before applying for the loan and use the calculators to work out how much you can borrow, what your monthly repayments would be and the upfront costs you’d likely pay.
You can also book a time with a Commonwealth first home loan specialist by calling 13 2221.
CommBank publishes a property report that may help you understand the real estate market. The bank has also created a CommBank Property App that you can use to search for property. The link to download this app is available on the same webpage.
If you are eligible for the First Home Loan Deposit Scheme, CommBank will help you process your application. The scheme helps first home buyers to purchase a home with a low deposit. You can read details about this scheme here and speak with a CommBank home lending specialist to understand your options.
How to apply for a pre-approval home loan from Bendigo Bank?
Applying for pre-approval on your home loan gives you confidence in your ability to secure finance while looking at potential new homes. You can get a free and personalised pre-approval home loan from Bendigo Bank in just a few minutes, without any credit checks or paperwork.
Bendigo Bank offers pre-approval for home loans that allow you to understand the home loan size you may be able to get before looking for a new home.
With the pre-approval, Bendigo Bank provides an estimate of your borrowing power. This figure incorporates stamp duty, lenders mortgage insurance (LMI) and any first home buyer incentives you may be eligible for. You may also qualify for the First Home Loan Deposit Scheme initiative, depending on your circumstances.
To apply for a pre-approval on your home loan from Bendigo Bank, all you need to do is fill in a smart form. You could also contact the bank directly on 1300 236 344.
What happens to my home loan when interest rates rise?
If you are on a variable rate home loan, every so often your rate will be subject to increases and decreases. Rate changes are determined by your lender, not the Reserve Bank of Australia, however often when the RBA changes the cash rate, a number of banks will follow suit, at least to some extent. You can use RateCity cash rate to check how the latest interest rate change affected your mortgage interest rate.
When your rate rises, you will be required to pay your bank more each month in mortgage repayments. Similarly, if your interest rate is cut, then your monthly repayments will decrease. Your lender will notify you of what your new repayments will be, although you can do the calculations yourself, and compare other home loan rates using our mortgage calculator.
There is no way of conclusively predicting when interest rates will go up or down on home loans so if you prefer a more stable approach consider opting for a fixed rate loan.
Can I get a home renovation loan with bad credit?
If you're looking for funds to pay for repairs or renovations to your home, but you have a low credit score, you need to carefully consider your options. If you already have a mortgage, a good starting point is to check whether you can redraw money from that. You could also consider applying for a new home loan.
Before taking out a new loan, it’s good to note that lenders are likely to charge higher interest rates on home repair loans for bad credit customers. Alternatively, they may be willing to lend you a smaller amount than a standard loan. You may also face some challenges with getting your home renovation loan application approved. If you do run into trouble, you can speak to your lender and ask whether they would be willing to approve your application if you have a guarantor or co-signer. You should also explain the reasons behind your bad credit rating and the steps that you’re taking to improve it.
Consulting a financial advisor or mortgage broker can help you understand your options and make the right choice.
Is a home equity loan secured or unsecured?
Home equity is the difference between its current market price and the outstanding balance on the mortgage loan. The amount you can borrow against the equity in your property is known as a home equity loan.
A home equity loan is secured against your property. It means the lender can recoup your property if you default on the repayments. A secured home equity loan is available at a competitive rate of interest and may be repaid over the long-term. Although a home equity loan is secured, lenders will assess your income, expenses, and other liabilities before approving your application. You’ll also want a good credit score to qualify for a home equity loan.
How do I refinance my home loan?
Refinancing your home loan can involve a bit of paperwork but if you are moving on to a lower rate, it can save you thousands of dollars in the long-run. The first step is finding another loan on the market that you think will save you money over time or offer features that your current loan does not have. Once you have selected a couple of loans you are interested in, compare them with your current loan to see if you will save money in the long term on interest rates and fees. Remember to factor in any break fees and set up fees when assessing the cost of switching.
Once you have decided on a new loan it is simply a matter of contacting your existing and future lender to get the new loan set up. Beware that some lenders will revert your loan back to a 25 or 30 year term when you refinance which may mean initial lower repayments but may cost you more in the long run.
How to apply for a home loan pre-approval from St. George?
By applying for a home loan pre-approval, you can establish how much you can afford to borrow and look for houses within that pre-approved budget. Getting home loan pre-approval from St. George is a fairly simple process that can be completed within 15 minutes.
The first step in this process is completing a home loan application. Once that application is submitted, a home loan expert from St. George will contact you to understand your requirements and your current financial position. You could also directly contact a home loan expert at the bank by calling 13 33 30 or by visiting your nearest branch.
Once the application has been processed, the home loan expert will ask for some basic documentation to confirm your borrowing capacity. After this, you should be issued a home loan pre-approval, subject to certain conditions.
Based on your home loan pre-approval from St. George, you can then find a property and make an offer. Your home loan expert will arrange to have the property valued and may request for more documentation, taking your home loan application to the next step.
What is a variable home loan?
A variable rate home loan is one where the interest rate can and will change over the course of your loan. The rate is determined by your lender, not the Reserve Bank of Australia, so while the cash rate might go down, your bank may decide not to follow suit, although they do broadly follow market conditions. One of the upsides of variable rates is that they are typically more flexible than their fixed rate counterparts which means that a lot of these products will let you make extra repayments and offer features such as offset accounts.