Compare home loan rates from 100+ lenders with our mortgage comparison tool

There are great reasons to compare home loans, and almost all of them benefit you in a positive way:

• Are you missing out on home loan features or discounts because you haven't switched lenders in years?
• Do you want some of the best home loan interest rates on the market? 

With thousands of home loans on the Australian market, it can be difficult to work out which home loan is best for you. With a home loan comparison, you can look at the interest rates, features and benefits of several different home loans side by side and get a better idea of the value they offer before making any decisions. 

Whether you're after better rates or mortgage repayments lower than the Australian average, there are plenty of great reasons to compare home loans with RateCity. 

An interest rate of 4% or lower is generally considered to be a good home loan interest rate when making a mortgage comparison, though it's important to remember that the mortgage with the lowest rate may not be the best home loan for your unique needs.

Some low-interest home loans are quite simple, offering fewer extra features and benefits. The lowest interest rates in Australia may not be available to every borrower, due to the specific financial requirements of different lenders. 

Australia's average home loan interest rate changes regularly, as mortgage offers are added to or removed from the market. Because every mortgage is different, you’ll need to decide what the best home loan is for your needs. 

Working out how much extra you may need to pay in interest for home loans with additional features can help you get a better idea of the value they may be able to offer your household.

When you compare home loans, you can enter your preferred mortgage features to help you find an option that better suits your needs.

Firstly, think about if you want a variable rate loan or a fixed rate loan:

• Variable rate home loans – Variable interest rates may increase or decrease during your mortgage term, often in line with changes to Australia's official cash rate, but sometimes independently, depending on your lender. If your lender passes on a rate cut, you could save money on your mortgage repayments, but if rates rise, you could find yourself paying more.
• Fixed rate home loans – Home loan interest rates can sometimes be fixed for a limited time, often from one to five years. During this time, your mortgage repayments will stay the same, for simple and consistent budgeting. This can protect you from higher repayments if interest rates rise, but you could also miss out on savings if interest rates fall.
• Split rate home loans - Some borrowers also choose to split their home loan interest rates between fixed and variable interest rates to lock in a bit of certainty in case of rate rises, while also making the most of low rates when they're available.

After you’ve chosen your preferred type of home loan, interest rate and repayments, you can compare mortgages with some popular home loan features, such as an offset account, a redraw facility, or extra repayments.

• Offset account - An offset account allows you to reduce the interest you pay by using money in a separate, but linked account to offset what you owe. For example, if you owe $300,000 but have $50,000 in an offset account, you’ll be charged interest as if you only owed $250,000, shrinking your repayments slightly.
• Extra repayments - Some lenders allow you to make extra mortgage repayments if you have a good month, receive a one-off windfall, or find youself able to afford higher regular repayments. This can help you clear your loan balance more quickly, and reduce the total interest you’re charged on your loan.
• Redraw facility - A redraw facility lets you withdraw any extra home loan repayments you’ve made if you need that money back in your pocket, which can be useful for covering unexpected expenses without having to take on more debt with a credit card or personal loan.

One of the benefits when you compare home loans with a financial comparison website like RateCity is that as well as looking at home loan interest rates, you can also compare fees. High fees on a home loan can negate the impact of a low interest rate, so they’re important to consider.

Some of the fees you’re likely to encounter during your mortgage comparison include:

• Upfront fees – These are the fees the lender will charge when you start your loan. They sometimes include establishment fees, conveyancing fees, stamp duty and Lender’s Mortgage Insurance (LMI). Upfront fees vary significantly between lenders.
• Ongoing fees – These are the monthly or yearly fees your lender may charge for the upkeep of your loan.
• Redraw fees – For some loans that feature a redraw facility, making a redraw may require paying a fee.
• Discharge fees – At the conclusion of your loan, your lender may charge a termination fee to cover the administration costs.