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Calculate and save by comparing home loans
Get the right home loan for your budget
Interest rates
A variety of interest rate options are available, from variable rates offering flexibility, to fixed rates for simpler budgeting, and split rates offering the best of both worlds. Remember that as well as interest charges, you’ll also have to pay home loan fees – check the Comparison Rate for an indication of each loan’s total cost.
Deposit size
While home loans traditionally require a deposit of 20% of the property value, some lenders let you borrow with a deposit of just 10% or 5%. Keep in mind that a mortgage with a Loan to Value Ratio (LVR) higher than 80% (e.g. a deposit smaller than 20%) may require you to pay Lender’s Mortgage Insurance (LMI) as an extra cost.
Features
If your mortgage comes with an offset account, you can use money saved in this account to reduce your interest charges. And if your lender allows you to make extra repayments onto your home loan, a redraw facility will let you withdraw some of these funds in case you need them.
What do you want a home loan for?
Buying a home
Owning your own home may be the Australian dream, but it’s not always easy to make this dream come true. By comparing the available home loan options, and choosing a mortgage that suits your personal finances, you can manage your home loan repayments while minimising mortgage stress.
Owner occupiers often enjoy lower home loan interest rates than investors, as many lenders feel that people keeping a roof over their heads are less likely to default on their mortgage repayments. And if you choose a home loan with a suitable set of features, you may be able to manage your repayments, pay less in interest, or fully pay off your mortgage ahead of schedule.
Buying an investment property
While there are no guarantees, investing in property is often considered less volatile than the share market or other ventures. There are several ways a clever property investor can generate a return on their investment, including receiving rental yield from tenants, or enjoying capital growth over time.
Because of the higher average interest rates for investor loans compared to owner occupier loans, as well as government regulations around investment lending, it’s important to compare investment mortgages carefully before making an application. Consider the fees and features as well as the interest rates, to work out which loan will be right for your investment strategy.
Are you struggling to get your head around home loans? Are you unsure which mortgage deal will best suit your financial needs and personal goals? Do you not know your LVRs from your LMIs, or your offset accounts from your lines of credit?
Sounds like you may need some help from a mortgage broker. These home loan experts can walk you through every step of your home loan journey, from working out what you can afford to signing on the dotted line. Even if you’re refinancing an existing home loan, a broker may help you find the best deal on your mortgage, giving you access to exclusive home loan offers and negotiating on your behalf to potentially get an even better rate.
Compare mortgage brokers today to find an expert guide to the world of home loans. You may be able to benefit from the local knowledge of a mortgage broker in your area, saving you time and hassle. Plus, as most mortgage brokers are paid commissions by lenders, it usually costs you nothing to visit a broker.
