Showing home loans based on a loan of
$
with a deposit of
Advertised Rate

1.99

% p.a

Fixed - 3 years

Comparison Rate*

2.70

% p.a

Company
Repayment

$1,270

monthly

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

4.32

/ 5
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Advertised Rate

2.14

% p.a

Variable

Comparison Rate*

2.16

% p.a

Company
Repayment

$1,292

monthly

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

4.15

/ 5
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Learn more about home loans

Whether you're buying a new home where you and your loved ones can live, or investing in property in hopes of a return, looking for a low interest home loan is a wise move. After all, the smaller your home loan repayments, the more affordable your loan will be, and the less of an impact it will make on your finances overall.

But a low interest rate isn’t the only factor to keep in mind when selecting or even making home loan comparisons. Depending on whether you’re investing, planning to occupy a property, or even refinancing an existing mortgage, there are a range of other features to consider when deciding which home loan product is right for you.

What is a low interest rate?

Nobody wants to spend more money than they have to, so it’s important to be confident you’re getting a good interest rate on your home loan. But how can you tell what counts as a low rate?

Because banks and mortgage lenders regularly update their home loan offers, it can be hard to know if you’re getting a low interest rate or not. For example, just a few years ago, interest rates below 4 per cent were considered low, but after multiple cash rate cuts from the Reserve Bank of Australia (RBA), it’s possible to find much lower home loan interest rates, including some below 2 per cent. 

The RBA monitors home loan interest rates and tracks the average interest rates for both new and existing mortgage offers. If you can find mortgage offers below the RBA’s average, you may consider these to be low rate loans. 

How do I find the lowest interest rate?

One of the simplest ways to find a low interest rate is to look at RateCity’s home loan tables, and sort the available offers by their advertised rate or comparison rate (which includes the cost of interest plus standard fees and charges). 

Keep in mind that the home loan with the lowest interest rate on the table may not be the best home loan for you. Be sure to check if it offers useful features and benefits that suit your financial situation, and confirm whether or not you can fulfil the loan’s eligibility criteria. For example, if you’re an investor, you won’t be eligible for a low rate owner-occupier home loan. 

How important are low interest rates?

Mortgages with low interest rates are understandably popular among borrowers, as they involve paying less money to the lender on top of each instalment of the loan’s principal.

Some lenders offer heavily-discounted “Honeymoon Rates” as a special offer for the early stage of a loan, which typically revert to standard variable interest rates once this introductory period expires.

On the surface, these may appear to be lowest interest home loan rates you can find, but if you don’t take into account the introductory period caveat when planning your budget, you could find yourself paying much more than you initially expected.

It’s also important to remember that many lenders also charge fees with their mortgages, which can make a significant impact on the budget of a borrower. These can include upfront fees or application fees, ongoing annual fees, extra or early repayment fees and redraw fees. A mortgage with a low interest rate and high ongoing fees may ultimately turn out to be more expensive in total than a mortgage with a higher interest rate with lower fees and charges.

One way to get an idea of the relative costs of different home loans is to look at their Comparison Rates, which combine a lender's advertised interest rates with their standard fees and charges.

However, you should keep in mind that a loan’s comparison rate may not take its nonstandard fees and charges into account, or any bonus features offered by the lender that could add extra value to the loan.

What types of home loans have the lowest interest rates?

Some types of home loans are more likely to have lower interest rates than others. Generally, the lower the risk that you’ll default on your mortgage repayments, the lower the interest rate you’re likely to be offered on your home loan. 

While the final interest rate you’re offered will likely come down to your lender’s terms and conditions, as well as your own personal financial situation, you may be able to expect a different interest rate depending on whether you’re buying an investment property or a home to live in, planning to make principal and interest repayments or pay interest only, and if you’re looking for a variable or fixed interest rate. 

Are you an investor?

Lenders offer different types of home loans to owner occupiers and to investors, to better suit the different financial positions of these property purchasers.

While there are always exceptions, home loans for owner occupiers tend to offer low interest rates that are lower on average than what is found in investment home loans. This is partially due to government regulations surrounding investment property lending, and because lenders tend to consider investors to be greater financial risks than owner occupiers.

Principal and interest or interest only repayments?

In most home loans, each repayment consists of a small percentage of the loan amount (the principal), plus an interest charge. Each Principal & Interest repayment pays off a little more of the loan, and brings you a little closer to paying off your property. 

You may be able to choose to pay only the interest on your mortgage for a limited time, minimising your loan’s short term costs. However, because these repayments don’t reduce your loan amount, your loan may take longer to pay off, and you may end up paying more interest on your property in total. 

Interest-only mortgages often charge interest at higher rates than principal and interest mortgages, as there’s a risk that a borrower may not be able to afford the loan when it eventually reverts to principal and interest repayments. 

Fixed or variable interest rate?

Once you find a low interest loan, you should be able to calculate the affordability of its repayments. But keep in mind that the mortgage’s low interest rate may not stay that low forever!

Many mortgages have variable interest rates, where the amount of interest the lender charges is affected by the national cash rate set by the Reserve Bank of Australia (RBA). If the RBA keeps the cash rate on hold, the amount of interest you pay should remain steady. If the cash rate is cut, your lender should pass the interest cut on to you, reducing your home loan repayments.

However, the RBA may also choose to increase the cash rate, which could lead to your interest payments becoming more expensive if your lender passes on this rate rise. A sustained period of regular rate rises could lead to your mortgage repayments growing much more expensive than what they were originally, potentially putting you at risk of mortgage stress.

Some lenders fix their mortgage interest rates for anywhere from one to twelve years. This can help to keep your repayments stable and comfortably affordable during the fixed period, which can prove especially valuable to first home buyers hoping to build up their initial equity. However, with one of these fixed rate loans, you also won’t benefit from any savings if the RBA lowers the cash rate.

If you’re uncertain whether a variable or fixed rate home loan best suits your finances, you may be able to choose a split rate home loan, which involves paying a fixed rate of interest on a percentage of your loan’s principal, and a variable rate on the remaining balance. A split rate home loan lets you enjoy some of the advantages of a variable rate home loan, such as savings from rate cuts, while at the same time benefiting from the security of a fixed interest rate, which can help keep your repayments from getting too high if rates rise.

What is mortgage stress?

You may know that borrowers can run the risk of mortgage stress if interest rates increase, but what is mortgage stress?

Various banks and mortgage lenders define mortgage stress differently. One common benchmark is when a household has to devote at least 30 per cent of its pre-tax income to servicing its mortgage.

Households that are coping reasonably well with their monthly repayments can find themselves suffering mortgage stress if interest rates suddenly increase, or increase by a significant amount in a short period of time.

For example, between October 2009 and November 2010, the Reserve Bank of Australia increased the official cash rate by 1.50 percentage points. Imagine if you took out a home loan at, say, 4.50 per cent, and your lender then increased your interest rate by 1.50 percentage points over the next 13 months. Here’s what would happen if you had a 30-year loan for $350,000, $500,000, $650,000 or $800,000:

  $350,000 $500,000 $650,000 $800,000
Monthly repayments at 4.50% $1,773 $2,533 $3,293 $4,053
Monthly repayments at 6.00% $2,098 $2,998 $3,897 $4,796
Increase $325 $465 $604 $743

The great thing about a home loan calculator is that you can use it to research what would need to happen for you to fall into mortgage stress, and then plan accordingly.

What else should I look for with a home loan?

While a low interest rate is important, there’s much more to consider when choosing a home loan. The best home loan for you may not always be the choice with the lowest rate - compare other home loan features, benefits, fees and charges to make sure you choose a mortgage that suits your needs.

What loan term should I choose?

If you’re looking at low interest home loans to hopefully minimise how much interest you’ll pay on a property, then you may also want to consider the length of time that you’ll take to pay off your loan amount. Many mortgages start with terms of 25 or 30 years, though shorter and longer loan terms do exist.

By paying back your mortgage over a longer term, you’ll be making a larger number of repayments, each one for a smaller percentage of the principal. This can help to keep your repayments on the low side, so your mortgage remains more affordable from month to month. However, more repayments means more interest charges, so you may ultimately pay more in total interest over the longer loan term than if you’d opted for a shorter term.

A shorter loan term involves paying off your principal over a shorter period. Fewer repayments means fewer interest charges over the life of the loan, so you can ultimately pay less interest on top of your loan’s principal. However, this does mean that each repayment will be for a larger percentage of your loan principal, making your mortgage less affordable from month to month.

If you're looking to refinance your home loan, it's important to consider how far you are into your current loan term so that you don't fall into the trap of extending your loan term without realising. If you are already 5 years into a 30-year loan, for example, refinancing to another 30-year loan could mean losing money in the long run as you might pay more interest over the life of the loan.

How large a deposit will I need?

Most lenders require you to pay a certain amount of money up-front when you apply for a home loan. This amount varies by lender, but around 20 per cent of the property value is not uncommon. If you’re looking for a low rate loan, you’ll likely need to pay the full deposit to help reduce the lender’s risk.

If you can’t afford a full deposit on the mortgage you’re looking at, there may be other options available to you.

Some lenders can offer a mortgage with a higher Loan to Value Ratio (LVR), where you pay a smaller deposit and borrow a greater percentage of the property’s value instead. However, for these options you’ll likely be required to pay the extra expense of Lender’s Mortgage Insurance (LMI) to help protect the lender in case you default on your repayments.

One option to avoid pricey LMI is a Guarantor loan, where a close relative guarantees your home loan with the equity in their own property in lieu of the full deposit. This option can prove risky for the guarantor though, so be sure they understand what’s involved first.

Do I need an offset account or redraw facility?

A low interest rate on your home loan can help to keep your personal finances manageable, but some lenders also offer additional options that can be helpful in this area.

An offset account is a savings or transaction account that’s linked to your home loan. Any money paid into this account is included when the lender calculates its interest charges, which can help you save some money.

Example: If you’ve paid back $200,000 of a $500,000 home loan, and have $15,000 in your offset account, your interest repayments will be calculated on a remaining balance of $285,000 rather than $300,000.

A redraw facility will allow you to withdraw surplus money from your mortgage, provided you’ve made additional repayments. This can allow you to confidently make extra repayments onto your home loan, without worrying about finding yourself short on funds in case of emergency.

Even if you never use the redraw facility, paying extra money onto your home loan will bring you closer to paying it off ahead of schedule and potentially saving money in interest payments. Just me mindful that some lenders may charge redraw fees.

Do banks or non-banks offer the lowest interest rates?

When looking at interest rates on their own, in many cases non-bank lenders will make lower offers than the banks to stay competitive. And as these lenders are often smaller organisations than the big banks, they may be able to offer more personalised services to their customers, or possibly offer more flexible lending criteria to better suit a wider range of borrowers.

However, just because a mortgage has a low rate doesn’t mean it will necessarily offer the greatest value.

It's often good to keep in mind that while the lowest home loan interest rates can be offered by any lender, a low rate home loan that works best for you will likely be better for your needs in the long term. 

Larger banks are often able to offer full home loan packages, bundling the bank’s full range of services (transaction/savings accounts, credit cards etc.) along with the mortgage. Plus, with most banks you’ll have the option to visit a branch to talk over your home loan, which may not be possible with some online-only lenders.

Where can I find an interest rate under 2 per cent?

Home loan rates change regularly for a range of different reasons, meaning it could be more or less difficult to find an interest rate under 2 per cent depending on the state of the market.

At the time of writing, the RateCity database has a number of home loans with advertised rates of under 2 per cent, however this will typically fluctuate with the market.

In order to determine whether a home loan charges low or high interest, it may be helpful to understand what the average is at the time of your comparison. The Reserve Bank of Australia (RBA) records average home loan interest rates in Australia, which might help you get a better idea of what to expect.

How do I compare low interest mortgages?

When deciding on the right loan type to suit your unique financial situation, low interest rates are just one of many available factors to consider. To make your low interest rate mortgage comparison process easier and more efficient, RateCity collects the essential information regarding a wide variety of home loans all in one place, allowing you to quickly narrow down your shortlist of preferred lenders. 

By using RateCity's home loan comparison system to help you save time and effort on your home loan search, you can invest more of your energy into working out which loan options will provide features and benefits that will best suit your finances and your lifestyle, all while enjoying affordable repayments offered by low interest rates.

RateCity's Mortgage Calculator may also come in handy if you'd like to get an estimate of the potential cost of your weekly, fortnightly or monthly repayments. It allows you to compare different comparison rates, different loan amounts and different terms to give you an idea of what your regular repayments might look like.

Frequently asked questions

What are the different types of home loan interest rates?

A home loan interest rate is used to calculate how much you’ll pay the lender, usually annually, above the amount you borrow. It’s what the lenders charge you for them lending you money and will impact the total amount you’ll pay over the life of your home loan. 

Having understood what are home loan rates in general, here are the two types you usually have with a home loan:

Fixed rates

These interest rates remain constant for a specific period and are a good option if you’re a first-time buyer or if you’re looking for a fixed monthly repayment. One possible downside of a fixed rate is that it may be higher than a variable rate. Also, you don’t benefit from any lowering of interest rates in the market. On the flip side, if rates go up, your rate won’t change, possibly saving you money.

Variable rates

With variable interest rates, the lender can change them at any time. This change can be based on economic conditions or other reasons. Changes in interest rates could be beneficial if your monthly repayment decreases but can be a problem if it increases. Variable interest rates offer several other benefits often not available with fixed rate home loans like redraw and offset facilities and free extra repayments. 

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.

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 is interest charged on a reverse mortgage from IMB Bank?

An IMB Bank reverse mortgage allows you to borrow against your home equity. You can draw down the loan amount as a lump sum, regular income stream, line of credit or a combination. The interest can either be fixed or variable. To understand the current rates, you can check the lender’s website.

No repayments are required as long as you live in the home. If you sell it or move to a senior living facility, the loan must be repaid in full. In some cases, this can also happen after you have died. Generally, the interest rates for reverse mortgages are higher than regular mortgage loans.

The interest is added to the loan amount and it is compounded. It means you’ll pay interest on the interest you accrue. Therefore, the longer you have the loan, the higher is the interest and the amount you’ll have to repay.

What is an interest-only loan? How do I work out interest-only loan repayments?

An ‘interest-only’ loan is a loan where the borrower is only required to pay back the interest on the loan. Typically, banks will only let lenders do this for a fixed period of time – often five years – however some lenders will be happy to extend this.

Interest-only loans are popular with investors who aren’t keen on putting a lot of capital into their investment property. It is also a handy feature for people who need to reduce their mortgage repayments for a short period of time while they are travelling overseas, or taking time off to look after a new family member, for example.

While moving on to interest-only will make your monthly repayments cheaper, ultimately, you will end up paying your bank thousands of dollars extra in interest to make up for the time where you weren’t paying off the principal.

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.

 

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 can I calculate interest on my home loan?

You can calculate the total interest you will pay over the life of your loan by using a mortgage calculator. The calculator will estimate your repayments based on the amount you want to borrow, the interest rate, the length of your loan, whether you are an owner-occupier or an investor and whether you plan to pay ‘principal and interest’ or ‘interest-only’.

If you are buying a new home, the calculator will also help you work out how much you’ll need to pay in stamp duty and other related costs.

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. 

How do I calculate monthly mortgage repayments?

Work out your mortgage repayments using a home loan calculator that takes into account your deposit size, property value and interest rate. This is divided by the loan term you choose (for example, there are 360 months in a 30-year mortgage) to determine the monthly repayments over this time frame.

Over the course of your loan, your monthly repayment amount will be affected by changes to your interest rate, plus any circumstances where you opt to pay interest-only for a period of time, instead of principal and interest.

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. 

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.  

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.

What is the average length of a home loan?

Most Aussie lenders offer home loans with a 30-year term, meaning that you should pay back the full loan amount and the interest you owe on the amount in 30 years. 

However, home loans can also have a shorter or longer term. They may be as low as ten years or up to 45 years, depending on the product and lender. 

It’s worth remembering that a longer loan term usually means you’ll end up paying a lot more interest in total, but your scheduled repayments may be more manageable. In contrast, you could opt for a shorter loan term if you are comfortable making large repayments in exchange for paying less interest over the term of the loan.

What is the difference between fixed, variable and split rates?

Fixed rate

A fixed rate home loan is a loan where the interest rate is set for a certain amount of time, usually between one and 15 years. The advantage of a fixed rate is that you know exactly how much your repayments will be for the duration of the fixed term. There are some disadvantages to fixing that you need to be aware of. Some products won’t let you make extra repayments, or offer tools such as an offset account to help you reduce your interest, while others will charge a significant break fee if you decide to terminate the loan before the fixed period finishes.

Variable rate

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.

Split rates home loans

A split loan lets you fix a portion of your loan, and leave the remainder on a variable rate so you get a bet each way on fixed and variable rates. A split loan is a good option for someone who wants the peace of mind that regular repayments can provide but still wants to retain some of the additional features variable loans typically provide such as an offset account. Of course, with most things in life, split loans are still a trade-off. If the variable rate goes down, for example, the lower interest rates will only apply to the section that you didn’t fix.

What is a fixed home loan?

A fixed rate home loan is a loan where the interest rate is set for a certain amount of time, usually between one and 15 years. The advantage of a fixed rate is that you know exactly how much your repayments will be for the duration of the fixed term. There are some disadvantages to fixing that you need to be aware of. Some products won’t let you make extra repayments, or offer tools such as an offset account to help you reduce your interest, while others will charge a significant break fee if you decide to terminate the loan before the fixed period finishes.

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.

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.

How to use the ME Bank reverse mortgage calculator?

You can access the equity in your home to help you fund your needs during your senior years. A ME Bank reverse mortgage allows you to tap into the equity you’ve built up in your home while you continue living in your house. You can also use the funds to pay for your move to a retirement home and repay the loan when you sell the property.

Generally, if you’re 60 years old, you can borrow up to 15 per cent of the property value. If you are older than 75 years, the amount you can access increases to up to 30 per cent. You can use a reverse mortgage calculator to know how much you can borrow.

To take out a ME Bank reverse mortgage, you’ll need to provide information like your age, type of property – house or an apartment, postcode, and the estimated market value of the property. The loan to value ratio (LVR) is calculated based on your age and the property’s value.

What do people do with a Macquarie Bank reverse?

There are a number of ways people use a Macquarie Bank reverse mortgage. Below are some reasons borrowers tend to release their home’s equity via a reverse mortgage:

  • To top up superannuation or pension income to pay for monthly bills;
  • To consolidate and repay high-interest debt like credit cards or personal loans;
  • To fund renovations, repairs or upgrades to their home
  • To help your children or grandkids through financial difficulties. 

While there are no limitations on how you can use a Macquarie reverse mortgage loan, a reverse mortgage is not right for all borrowers. Reverse mortgages compound the interest, which means you end up paying interest on your interest. They can also affect your entitlement to things like the pension It’s important to think carefully, read up and speak with your family before you apply for a reverse mortgage.