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$

Deposit

Loan Term

151015202530

25 years

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Green Home Loan

Real Time Rating™

4.00

/ 5

Winner of Best Green Home Loan, RateCity Gold Awards 2022

Interest Rate

2.13

% p.a

Variable

Comparison Rate*

2.55

% p.a

Company
Repayment

$1,291

monthly

Features
Redraw facility
Offset Account
Borrow up to 90%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

4.00

/ 5
Go to site

Winner of Best Green Home Loan, RateCity Gold Awards 2022

Product

Fixed Rate Home Loan (with Advantage Package)

Real Time Rating™

1.86

/ 5
Interest Rate

5.49

% p.a

Fixed - 5 years

Comparison Rate*

5.04

% p.a

Company
Repayment

$1,373

monthly

Features
Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

1.86

/ 5
Go to site

Cashback

Receive $4000 in cashback when you refinance
Product

5 year Fixed Rate Home Loan

Real Time Rating™

1.50

/ 5
Interest Rate

4.64

% p.a

Fixed - 5 years

Comparison Rate*

4.88

% p.a

Company
Repayment

$1,691

monthly

Features
Redraw facility
Offset Account
Borrow up to 95%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

1.50

/ 5
Go to site
Product

Smart Booster Investor Bundle Discount Variable - 1 Year (Principal and Interest)

Real Time Rating™

2.07

/ 5
Interest Rate

2.24

% p.a

Intro 12 months

Comparison Rate*

2.96

% p.a

Company
Repayment

$1,421

monthly

Features
Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

2.07

/ 5
Go to site
Product

Low Rate Home Loan - Prime (Owner Occupied) (Interest Only)

Real Time Rating™

2.81

/ 5
Interest Rate

2.44

% p.a

Variable

Comparison Rate*

2.24

% p.a

Company
Repayment

$610

monthly

Features
Redraw facility
Offset Account
Borrow up to 60%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

2.81

/ 5
Go to site
Product

Low Rate Home Loan - Prime (Owner Occupied) (Principal and Interest)

Real Time Rating™

3.67

/ 5

Winner of Best Home Loans Over 1m, Best Variable Home Loan, RateCity Gold Awards 2022

Interest Rate

2.24

% p.a

Variable

Comparison Rate*

2.24

% p.a

Company
Repayment

$1,307

monthly

Features
Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

3.67

/ 5
Go to site

Winner of Best Home Loans Over 1m, Best Variable Home Loan, RateCity Gold Awards 2022

Product

Low Rate Home Loan - Prime (Owner Occupied) (Interest Only)

Real Time Rating™

2.56

/ 5
Interest Rate

2.54

% p.a

Variable

Comparison Rate*

2.34

% p.a

Company
Repayment

$635

monthly

Features
Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

2.56

/ 5
Go to site
Product

Owner Occupier Accelerates - Liberate (Principal and Interest)

Real Time Rating™

3.67

/ 5
Interest Rate

2.24

% p.a

Variable

Comparison Rate*

2.18

% p.a

Company
Repayment

$1,307

monthly

Features
Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

3.67

/ 5
Go to site
Product

Low Rate Home Loan - Prime (Investment) (Principal and Interest)

Real Time Rating™

3.55

/ 5
Interest Rate

2.29

% p.a

Variable

Comparison Rate*

2.29

% p.a

Company
Repayment

$1,314

monthly

Features
Redraw facility
Offset Account
Borrow up to 60%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

3.55

/ 5
Go to site
Product

Low Rate Home Loan - Prime (Investment) (Interest Only)

Real Time Rating™

2.43

/ 5
Interest Rate

2.59

% p.a

Variable

Comparison Rate*

2.39

% p.a

Company
Repayment

$648

monthly

Features
Redraw facility
Offset Account
Borrow up to 60%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

2.43

/ 5
Go to site
Product

Low Rate Home Loan - Prime (Investment) (Interest Only)

Real Time Rating™

2.17

/ 5
Interest Rate

2.69

% p.a

Variable

Comparison Rate*

2.49

% p.a

Company
Repayment

$673

monthly

Features
Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

2.17

/ 5
Go to site

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Are there home loans for pilots and air crew?

Working in the skies as a pilot or as part of an air crew can be rewarding, but it may make it a little trickier to manage some aspects of your life admin. Inspecting new homes, comparing home loan offers and organising mortgage applications may be more challenging when you’re frequently travelling.

However, pilots and crew may be eligible for special home loan offers that aren’t typically advertised. Unlike an everyday home loan, these mortgage deals may allow you to apply with a smaller deposit and pay no Lender’s Mortgage Insurance (LMI), or benefit from a low interest rate or other flexible features and benefits.

Why do pilots qualify for special home loans?

Banks and other mortgage lenders tend to reserve the home loans with the lowest interest rates and the most features and benefits for the borrowers at the lowest risk of defaulting on their mortgage repayments.

Because pilots and crew are often paid higher average salaries and have greater job security than Australians working in other industries, lenders may be more willing to offer them special mortgage packages in order to secure them as customers.     

Can Australian pilots borrow for an investment property?

Just like other Australian home buyers, pilots and cabin crew can use a home loan to buy their first home or an investment property. This could allow them to earn rental income from the property, or to benefit from the property’s capital growth over time.

However, much like other Australians, pilots will need to fulfil the eligibility criteria for an investment home loan. Because banks and mortgage lenders tend to consider investment loans to be at a higher risk of defaults than owner occupiers, you may need to pay a higher deposit or a higher interest rate.

Can self-employed pilots borrow for a home loan?

Pilots who run their own business or who work as contractors may also be able to benefit from special home loans for pilots. That said, because the income of a self-employed pilot may be less stable than a pilot working full time for a commercial airline, you may need to pay a higher interest rate for a low doc home loan, or otherwise fulfil tighter eligibility criteria than some other pilot home loan deals.

How much can a pilot borrow for a home loan?

Your maximum loan amount may depend on your income as a pilot, as well as your household expenses, you credit score, and other factors. You can use a borrowing power calculator to estimate how much you may be able to borrow with a mortgage.

Most mortgage lenders will want a deposit of at least 20 per cent of the property value paid upfront, to help maintain a loan to value ratio (LVR) of 80 per cent or less. You may be able to apply with a smaller deposit, but you’d likely have to pay for Lenders Mortgage Insurance (LMI) – the smaller your deposit, the more the LMI may cost. Remember that this insurance protects the lender, not you, in case you default on your repayments.

Because mortgage lenders may be keen to have a pilot as a customer, they may offer you home loan deal where you can apply with a smaller deposit without having to pay LMI. By only requiring a deposit of 15 per cent, you can potentially borrow more to purchase your preferred property.

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What special offers can a pilot get on a mortgage?

Different banks and mortgage lenders may offer different features and benefits to pilots applying for home loans, based on how well they fulfil the lender’s eligibility criteria. Some of the common offers include:

  • Smaller upfront deposit: Rather than paying 20 per cent a property’s value upfront, you may only need to pay 15 per cent or even less.
  • Waived LMI: While you’d normally have to pay for LMI if your deposit is less than 20 per cent, pilots may see the cost of LMI waived if they pay a minimum deposit e.g. 15%.
  • Discounted interest rates: You may be able to pay less on your monthly mortgage repayments than some other borrowers.
  • Waived fees: You may be able to access your loan’s features and benefits without paying as much in upfront or annual fees.

What does a pilot need to apply for a home loan?

Like with most home loans, a pilot will likely need to provide a potential mortgage lender with information on their income, expenses, assets and liabilities. This is to help show a lender that they can comfortably afford the repayments without too much risk of ending up in mortgage stress if their financial circumstances change.

To qualify for a specialist home loan for pilots or aircrew, an applicant may need to also provide proof of membership with an aviation industry association or similar body. They’ll also need to provide identification and proof of Australian citizenship or residency.

Who offers home loans for pilots?

Home loans are available from a wide variety of lenders. These range from Australia’s leading banks to smaller non-bank lenders, including online-only fintechs.

Not all mortgage lenders may offer special home loan offers for pilots, and if they do, these specialised loans may not always be advertised. You may be able to contact individual mortgage lenders to confirm whether they offer special home loans for pilots.

There are also some lenders that specialise in financial products for pilots, air crew and others in the aviation industry. Including home loans.

Can a broker help with a pilot home loan?

It’s important for passengers to be confident in their pilot and flight crew, and it’s just as important for you to be confident in your mortgage broker. Whether you're a first-time borrower or you're an existing homeowner looking to refinance, these home loan experts can look at your personal finances and recommend some of the best home loan products to suit your needs, such as choosing between a fixed rate and a variable interest rate deal.

Brokers can also direct you to specialised home loans for pilots, which may not always be advertised, and help you set up a loan structure that matches your situation. A broker can help manage the paperwork for you, from the loan application to parts of the real estate process, which can be handy when you’re away from home for long stretches of time.

Finally, a broker can also help you to refinance your pilot home loan when your financial situation changes. Refinancing onto a home loan with a lower interest rate or features and benefits that better suit your financial situation could help to put you into a better position for the future.

What is a home loan?

A home loan is a finance product that allows a home buyer to borrow a large sum of money from a lender for the purchase of a residential property. The home is then put up as "security" or "collateral" on the loan, giving the lender the right to repossess the property in the case that the borrower fails to repay their loan.

Once you take out a home loan, you'll need to repay the amount borrowed, plus interest, in regular instalments over a predetermined period of time.

The interest you're charged on each mortgage repayment is based on your remaining loan amount, also known as your loan principal. The rate at which interest is charged on your home loan principal is expressed as a percentage.

Different home loan products charge different interest rates and fees, and offer a range of different features to suit a variety of buyers’ needs.

What is a secured home loan?

When the lender creates a mortgage on your property, they’re offering you a secured home loan. It means you’re offering the property as security to the lender who holds this security against the risk of default or any delays in home loan repayments. Suppose you’re unable to repay the loan. In this case, the lender can take ownership of your property and sell it to recover any outstanding funds you owe. The lender retains this hold over your property until you repay the entire loan amount.

If you take out a secured home loan, you may be charged a lower interest rate. The amount you can borrow depends on the property’s value and the deposit you can pay upfront. Generally, lenders allow you to borrow between 80 per cent and 90 per cent of the property value as the loan. Often, you’ll need Lenders Mortgage Insurance (LMI) if the deposit is less than 20 per cent of the property value. Lenders will also do a property valuation to ensure you’re borrowing enough to cover the purchase. 

Who offers 40 year mortgages?

Home loans spanning 40 years are offered by select lenders, though the loan period is much longer than a standard 30-year home loan. You're more likely to find a maximum of 35 years, such as is the case with Teacher’s Mutual Bank

Currently, 40 year home loan lenders in Australia include AlphaBeta Money, BCU, G&C Mutual Bank, Pepper, and Sydney Mutual Bank.

Even though these lengthier loans 35 to 40 year loans do exist on the market, they are not overwhelmingly popular, as the extra interest you pay compared to a 30-year loan can be over $100,000 or more.

How long should I have my mortgage for?

The standard length of a mortgage is between 25-30 years however they can be as long as 40 years and as few as one. There is a benefit to having a shorter mortgage as the faster you pay off the amount you owe, the less you’ll pay your bank in interest.

Of course, shorter mortgages will require higher monthly payments so plug the numbers into a mortgage calculator to find out how many years you can potentially shave off your budget.

For example monthly repayments on a $500,000 over 25 years with an interest rate of 5% are $2923. On the same loan with the same interest rate over 30 years repayments would be $2684 a month. At first blush, the 30 year mortgage sounds great with significantly lower monthly repayments but remember, stretching your loan out by an extra five years will see you hand over $89,396 in interest repayments to your bank.

What are the benefits of a reverse mortgage from P&N Bank?

A reverse mortgage allows senior homeowners to unlock the equity in their homes. There is no repayment schedule, and the loan is repaid at the time of selling, if you move out or when the homeowner passes away. The interest accumulates on the outstanding amount and is added to what was initially borrowed.

Here are some benefits of applying for a P&N Bank reverse mortgage:

  • Flexibility to use the funds as desired; you can travel, pay for medical bills or undertake home improvements or use it for your regular living costs
  • A negative equity guarantee ensures the amount you have to repay never exceeds the value of your home
  • A reverse mortgage does not have a regular monthly instalment, and you can repay any amount you wish at any point during the loan tenure
  • You can choose to withdraw the loan amount as per your requirements

The P&N Bank reverse mortgage amount is based on factors like your age, location of the property, and the loan-to-value ratio (LVR).

This article was reviewed by Personal Finance Editor Georgia Brown before it was published as part of RateCity's Fact Check process.

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