RateCity.com.au
powering smart financial decisions
RateCity.com.au

Pros and cons

  • Loans have flexible options
  • Most loans have low fees
  • Loans have a fast approval process
  • No branch network
  • Loans have discharge fees

Owner occupied products interest rates

TMD

Loan typePrincipal & Interest rateInterest Only
Green Construction Home Loan (Min Deposit 10%)
n/a
2.13% p.a.
2.58% p.a. Comparison rate
Construction Loan (Min Deposit 20%)
n/a
3.72% p.a.
2.96% p.a. Comparison rate
1 Year Fixed Rate Home Loans (Min Deposit 20%)
n/a
4.64% p.a.
2.99% p.a. Comparison rate
Smart Home Loan (Min Deposit 20%)
2.73% p.a.
2.75% p.a. Comparison rate
3.04% p.a.
3.06% p.a. Comparison rate
2 Year Fixed Rate Home Loans (Min Deposit 20%)
n/a
5.44% p.a.
3.23% p.a. Comparison rate
Construction Loan (Min Deposit 10%)
n/a
3.92% p.a.
3.34% p.a. Comparison rate
3 Year Fixed Rate Home Loans (Min Deposit 20%)
n/a
5.69% p.a.
3.46% p.a. Comparison rate
4 Year Fixed Rate Home Loans (Min Deposit 20%)
n/a
5.94% p.a.
3.71% p.a. Comparison rate
5 Year Fixed Rate Home Loans (Min Deposit 20%)
n/a
5.99% p.a.
3.91% p.a. Comparison rate
Smart Booster Home Loan Discounted Variable - 2yr (Min Deposit 20%)
2.1% p.a.
2.46% p.a. Comparison rate
n/a
Green Home Loan (Min Deposit 10%)
2.13% p.a.
2.55% p.a. Comparison rate
n/a
Smart Booster Home Loan Discounted Variable - 1yr (Min Deposit 20%)
2.24% p.a.
2.72% p.a. Comparison rate
n/a
1 Year Fixed Rate Home Loans (Min Deposit 10%)
4.24% p.a.
2.96% p.a. Comparison rate
n/a
ZIP Home Loan (Min Deposit 20%)
2.98% p.a.
3% p.a. Comparison rate
n/a
Smart Home Loan (Min Deposit 10%)
3.04% p.a.
3.06% p.a. Comparison rate
n/a
2 Year Fixed Rate Home Loans (Min Deposit 10%)
5.04% p.a.
3.17% p.a. Comparison rate
n/a
3 Year Fixed Rate Home Loans (Min Deposit 10%)
5.29% p.a.
3.37% p.a. Comparison rate
n/a
4 Year Fixed Rate Home Loans (Min Deposit 10%)
5.54% p.a.
3.6% p.a. Comparison rate
n/a
5 Year Fixed Rate Home Loans (Min Deposit 10%)
5.59% p.a.
3.78% p.a. Comparison rate
n/a

Investment purpose products interest rates

TMD

Loan typePrincipal & Interest rateInterest Only
Smart Booster Investor Bundle Discount Variable - 1 Year (Min Deposit 20%)
2.24% p.a.
2.96% p.a. Comparison rate
2.24% p.a.
2.96% p.a. Comparison rate
Green Investment Loan (Min Deposit 10%)
2.39% p.a.
2.81% p.a. Comparison rate
2.64% p.a.
3.06% p.a. Comparison rate
Green Construction Investment Loan (Min Deposit 10%)
n/a
2.64% p.a.
3.09% p.a. Comparison rate
Construction Investor Loan (Min Deposit 20%)
n/a
3.82% p.a.
3.24% p.a. Comparison rate
Smart Investor Home Loan (Min Deposit 20%)
2.99% p.a.
3.01% p.a. Comparison rate
3.24% p.a.
3.26% p.a. Comparison rate
1 Year Fixed Rate Home Loans (Min Deposit 20%)
n/a
4.84% p.a.
3.28% p.a. Comparison rate
Smart Investor Home Loan (Min Deposit 10%)
3.24% p.a.
3.26% p.a. Comparison rate
3.44% p.a.
3.46% p.a. Comparison rate
2 Year Fixed Rate Home Loans (Min Deposit 20%)
n/a
5.64% p.a.
3.51% p.a. Comparison rate
Construction Investor Loan (Min Deposit 10%)
n/a
4.02% p.a.
3.53% p.a. Comparison rate
3 Year Fixed Rate Home Loans (Min Deposit 20%)
n/a
5.89% p.a.
3.73% p.a. Comparison rate
4 Year Fixed Rate Home Loans (Min Deposit 20%)
n/a
6.14% p.a.
3.97% p.a. Comparison rate
5 Year Fixed Rate Home Loans (Min Deposit 20%)
n/a
6.19% p.a.
4.17% p.a. Comparison rate
1 Year Fixed Rate Home Loans (Min Deposit 10%)
4.44% p.a.
3.26% p.a. Comparison rate
n/a
2 Year Fixed Rate Home Loans (Min Deposit 10%)
5.24% p.a.
3.46% p.a. Comparison rate
n/a
3 Year Fixed Rate Home Loans (Min Deposit 10%)
5.49% p.a.
3.65% p.a. Comparison rate
n/a
4 Year Fixed Rate Home Loans (Min Deposit 10%)
5.74% p.a.
3.87% p.a. Comparison rate
n/a
SMSF 80 (Min Deposit 20%)
3.94% p.a.
3.95% p.a. Comparison rate
n/a
5 Year Fixed Rate Home Loans (Min Deposit 10%)
5.79% p.a.
4.04% p.a. Comparison rate
n/a

Home loan repayment calculator

Thinking about taking out a home loan with loans.com.au? Use our home loan calculator to see how much you’d have to repay under different borrowing scenarios. You can also see how loans.com.au home loans compare with other options.

I am an

With a repayment type

Borrow amount

$

Deposit amount %

Loan term

Your estimated mortgage repayments

at interest rate 2.13%

Total interest payable

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Total loan repayments

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loans.com.au customer service

Being an online-only lender means loans.com.au customers don’t have access to a branch network. However, loans.com.au offers plenty of flexible and convenient contact options like online live chat. In addition, loan customers can contact the loans.com.au customer support line 7 days a week or can request a call back using the online enquiry form. Customers also have the option of emailing customer care directly. 

✓     Customer service centre (phone)

✓     Mobile app

✓     Online banking

✓     Email

✓     Live Chat

How to apply for a loans.com.au home loan

Borrowers keen to apply for a loans.com.au home loan can do so by filling out an online application form or calling the bank’s loan hotline. 

Before applying for a loans.com.au home loan, consider what you can afford to borrow and what other costs you need to include. 

To apply for a loan with loans.com.au, you will need to supply the following information:

  • Personal identity information.
  • Proof of income and employment.
  • Bank statements
  • Details of your current debts, liabilities and assets

Once you have filled out the initial information, you'll be put in touch with an online lending manager to finalise your loan. 

loans.com.au home loans review

loans.com.au is an online-only lender, known for offering competitive interest rates. A potential customer would need to be comfortable managing their mortgage online or over the phone. Options are available for borrowers looking to buy, refinance or build a property, either as a home to live in or an investment property.  

The interest rates on loans.com.au home loans are generally lower for owner-occupiers than they are for investors. Generally, if you have a lower loan-to-value ratio (LVR), or choose a home loan with fewer features, (e.g. without an offset account), your interest rate may be lower. As well as variable rates, options are available to fix your rate for up to three years.

Many of loans.com.au’s home loans are available without upfront or ongoing fees, though a rate lock fee applies for fixed rate loans, and other charges may apply.

loans.com.au home loans allow borrowers to make extra repayments, though there are limits for fixed rate loans. Redraw facilities are also available for selected loans, as is the option to split the loan between fixed and variable interest rates. An offset account is only available on selected home loans.

Learn more about home loans

How do you compare home loans?

To compare home loans, you can assess the components of the loan against your own financial situation and other mortgages in the market.

Look at the interest rate, rate type (fixed or variable), loan fees, features, loan term, repayment frequency and more to find a home loan that fits with your budget and property goals.

Then, use comparison tools like comparison tables, calculators, or RateCity's Real Time RatingsTM to create a short list of home loan options, and decide which home loan best suits your needs.

What are the features of home loans for expats from Westpac?

If you’re an Australian citizen living and working abroad, you can borrow to buy a property in Australia. With a Westpac non-resident home loan, you can borrow up to 80 per cent of the property value to purchase a property whilst living overseas. The minimum loan amount for these loans is $25,000, with a maximum loan term of 30 years.

The interest rates and other fees for Westpac non-resident home loans are the same as regular home loans offered to borrowers living in Australia. You’ll have to submit proof of income, six-month bank statements, an employment letter, and your last two payslips. You may also be required to submit a copy of your passport and visa that shows you’re allowed to live and work abroad.

Why does Westpac charge an early termination fee for home loans?

The Westpac home loan early termination fee or break cost is applicable if you have a fixed rate home loan and repay part of or the whole outstanding amount before the fixed period ends. If you’re switching between products before the fixed period ends, you’ll pay a switching break cost and an administrative fee. 

The Westpac home loan early termination fee may not apply if you repay an amount below the prepayment threshold. The prepayment threshold is the amount Westpac allows you to repay during the fixed period outside your regular repayments.

Westpac charges this fee because when you take out a home loan, the bank borrows the funds with wholesale rates available to banks and lenders. Westpac will then work out your interest rate based on you making regular repayments for a fixed period. If you repay before this period ends, the lender may incur a loss if there is any change in the wholesale rate of interest.

Cash or mortgage – which is more suitable to buy an investment property?

Deciding whether to buy an investment property with cash or a mortgage is a matter or personal choice and will often depend on your financial situation. Using cash may seem logical if you have the money in reserve and it can allow you to later use the equity in your home. However, there may be other factors to think about, such as whether there are other debts to pay down and whether it will tie up all of your spare cash. Again, it’s a personal choice and may be worth seeking personal advice.

A mortgage is a popular option for people who don’t have enough cash in the bank to pay for an investment property. Sometimes when you take out a mortgage you can offset your loan interest against the rental income you may earn. The rental income can also help to pay down the loan.

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.

How will Real Time Ratings help me find a new home loan?

The home loan market is complex. With almost 4,000 different loans on offer, it’s becoming increasingly difficult to work out which loans work for you.

That’s where Real Time RatingsTM can help. Our system automatically filters out loans that don’t fit your requirements and ranks the remaining loans based on your individual loan requirements and preferences.

Best of all, the ratings are calculated in real time so you know you’re getting the most current information.

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:

  1. 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.
  2. 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.
  3. 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.
  4. 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 find cheap home loans?

With so many interest rate options and repayment types available, finding the cheapest home loan may depend on the type of loan you choose.

Whether you’re looking for an owner-occupier or investor loan, with interest-only or principal and interest repayments, on a fixed or variable interest rate, the cheapest home loan rate available may vary greatly.

One way to find the cheapest option for you is to narrow down your search and compare the options that best suit your individual requirements. RateCity’s home loan comparison tables can help you get started on your search and take the hassle out of shopping around.

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.

 

When should I switch home loans?

The answer to this question is dependent on your personal circumstances – there is no best time for refinancing that will apply to everyone.

If you want a lower interest rate but are happy with the other aspects of your loan it may be worth calling your lender to see if you can negotiate a better deal. If you have some equity up your sleeve – at least 20 per cent – and have done your homework to see what other lenders are offering new customers, pick up the phone to your bank and negotiate. If they aren’t prepared to offer you lower rate or fees, then you’ve already done the research, so consider switching.

Do you compare mortgages using the comparison or advertised rate?

A lot of Australians compare home loans using the advertised interest rate, which indicates how much interest you’ll be charged on your mortgage repayments. The lower your rate, the cheaper your home loan should be.

However, interest charges aren’t the only cost associated with home loans. Most mortgage lenders also charge fees on their home loans. A mortgage with a low interest rate and high fees can sometimes cost more than a mortgage with a high interest rate and low fees.

A home loan’s comparison rate combines the cost of interest with the cost of standard fees and charges into a single percentage rate. Mortgage lenders are required to display a comparison rate alongside their advertised rate to better indicate the home loan’s overall cost.

Keep in mind that to ensure consistency, all comparison rates are calculated assuming a $150,000 principal and interest mortgage with a 25 year term. As your home loan may be different, the comparison rate may not accurately reflect exactly how much your home loan may cost. Also, the comparison rate doesn’t include every home loan fee and charge, so it’s still important to compare home loans and read the fine print before you apply.

When does Commonwealth Bank charge an early exit fee?

When you take out a fixed interest home loan with the Commonwealth Bank, you’re able to lock the interest for a particular period. If the rates change during this period, your repayments remain unchanged. If you break the loan during the fixed interest period, you’ll have to pay the Commonwealth Bank home loan early exit fee and an administrative fee.

The Early Repayment Adjustment (ERA) and Administrative fees are applicable in the following instances:

  • If you switch your loan from fixed interest to variable rate
  • When you apply for a top-up home loan
  • If you repay over and above the annual threshold limit, which is $10,000 per year during the fixed interest period
  • When you prepay the entire outstanding loan balance before the end of the fixed interest duration.

The fee calculation depends on the interest rates, the amount you’ve repaid and the loan size. You can contact the lender to understand more about what you may have to pay. 

When do mortgage payments start after settlement?

Generally speaking, your first mortgage payment falls due one month after the settlement date. However, this may vary based on your mortgage terms. You can check the exact date by contacting your lender.

Usually your settlement agent will meet the seller’s representatives to exchange documents at an agreed place and time. The balance purchase price is paid to the seller. The lender will register a mortgage against your title and give you the funds to purchase the new home.

Once the settlement process is complete, the lender allows you to draw down the loan. The loan amount is debited from your loan account. As soon as the settlement paperwork is sorted, you can collect the keys to your new home and work your way through the moving-in checklist.

How long can you fix a home loan rate for?

Most lenders should let you fix your interest rate for anywhere between one and five years. While rare, a few lenders may offer fixed rate terms for as long as 10 years.

Fixing your home loan interest rate for a longer term can keep your budgeting fairly straightforward, as you shouldn't have to factor in changes to your mortgage repayments if variable rates change, such as when the Reserve Bank of Australia (RBA) changes its rates at its monthly meeting. Additionally, if variable rates rise during your fixed rate term, you can continue to pay the lower fixed rate until the fixed term ends, potentially saving you some money.

Of course, a longer fixed term also means a longer length of time where you may have less flexibility in your home loan repayments. It’s also a longer period where you won’t be able to refinance your mortgage without paying break fees. If variable rates were to fall during this period, you may also be stuck paying a higher fixed rate for a longer period.

What is a valuation?

A property valuation is a formal assessment of how much your home is worth, to determine the Loan to Value Ratio (LVR) when you’re applying for a mortgage.

A valuation is carried out by a certified practicing valuer on behalf of a bank or mortgage lender, and is often based on available data about the property and recent sales of other similar properties in the local area. The valuer may also visit the property to assess its condition in person.

A valuation is typically different to an appraisal from a real estate agent, which is an informal estimate of how much a property could sell for at auction or via private sale.