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

1.99

% p.a

Intro 12 months

Comparison Rate*

2.47

% p.a

Company
Repayment

$1,343

monthly

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

3.31

/ 5
Go to site
Awards

Winner of Best Variable, Best Refinance Home Loan, RateCity Gold Awards 2021

More details
Advertised Rate

3.74

% p.a

Variable

Comparison Rate*

3.78

% p.a

Company
Repayment

$935

monthly

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

1.95

/ 5
Go to site
More details
Advertised Rate

4.24

% p.a

Variable

Comparison Rate*

4.26

% p.a

Company
Repayment

$1,060

monthly

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

1.67

/ 5
Go to site
More details
Advertised Rate

2.08

% p.a

Variable

Comparison Rate*

2.39

% p.a

Company
Repayment

$520

monthly

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

2.77

/ 5
Go to site
More details
Advertised Rate

3.13

% p.a

Variable

Comparison Rate*

3.14

% p.a

Company
Repayment

$1,443

monthly

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

1.97

/ 5
Go to site
More details
Advertised Rate

3.04

% p.a

Variable

Comparison Rate*

3.04

% p.a

Company
Repayment

$1,429

monthly

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

1.89

/ 5
Go to site
More details

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What is a mortgage rate?

After you successfully apply for a home loan, your bank or mortgage lender will expect you to pay back the money you’ve borrowed (the loan’s ‘principal’) in regular instalments over the rest of the loan term. Each instalment will be made up of a small part of the mortgage principal, plus an extra charge from the lender, called ‘interest’.

The rate at which the lender charges interest is expressed as a percentage. The higher the interest rate, the more a home loan may cost you, both from month to month and in total over the long term. A home loan’s mortgage rate is effectively the ‘cost’ of ’buying’ the money you borrow to buy a property.

A small change to your mortgage rate today can make a big different to the cost of your home loan, both tomorrow and years in the future. This is why it’s important to compare mortgage rates before applying for a home loan, whether you’re buying your first home or refinancing an investment property.

Who changes mortgage rates?

It’s rare to pay the same interest rate on a home loan over its full term. When your lender raises or lowers its variable interest rates, you can expect your home loan repayments to also increase or decrease.

Banks and mortgage lenders adjust their interest rates based on a range of economic factors. An important one is the national cash rate, set by the Reserve Bank of Australia (RBA). Almost every month, the RBA board meets to decide if it will increase Australia’s cash rate, decrease it, or keep it on hold.  

Because the cash rate affects how much it costs for banks and other lenders to provide loans and other financial services, changes to the cash rate often affect home loan interest rates. If the RBA increases the cash rate, your lender may increase your home loan interest rate. And if the RBA cuts the cash rate, your lender may pass on this cut in the form of a discounted mortgage rate.

Do banks and lenders have to follow RBA rate changes?

Banks and mortgage lenders aren’t required to pass on the cash rate changes from the RBA to their customers, though many do. Some lenders may choose to only pass on part of the changes – for example, after a cut to the cash rate, they may decide to only discount rates on selected loan offers, while leaving other home loans with their original interest rates.

Keep in mind that interest rates don’t just affect borrowers with loans; they also affect savers. Cuts to the cash rate could lead to cheaper borrowing but less interest earned on savings accounts and term deposits, while an increasing cash rate could help savers earn more interest while borrowers pay more for their loans. The effect on savers could influence your bank or mortgage lender’s decision whether or not to pass any changes to the national cash rate on to its customers.

How mortgage rates affect your home loan

By comparing mortgage rates, you can see how the lower your home loan’s interest rate, the more you can save in home loan interest charges over time.

For example, imagine you have 20 years left on your mortgage and you refinance from a home loan with an interest rate of 4.50% to one at 4.00%. Here's how much you could save, based on the size of your loan amount: 

$300,000$500,000$700,000
Total repayments at 4.5%$455,508$759,179$1,062,851
Total repayments at 4.0%$436,306$727,176$1,018,047
Potential interest savings$19,202$32,003$44,804

Above hypothetical examples are for illustrative purposes only. Assumes monthly repayments and no fees. Calculations source: MoneySmart

What are the different types of home loan rates?

The right mortgage rates can make an enormous difference to your unique financial situation, whether you're applying for your first home loan, or refinancing an existing mortgage.

The main types of interest rates you may encounter when comparing home loans are:

  • Variable rates;
  • Fixed rates;
  • Split rates, and;
  • Comparison rates.

What are variable mortgage rates?

Many Australian home loans have variable mortgage rates, which rise and fall over the lifetime of the loan, often in line with changes to the national cash rate from the RBA.

By choosing a variable rate home loan, your monthly repayments may be reduced if interest rates are cut, saving you some money and providing you with some financial flexibility. But if interest rates rise, you may find yourself paying more for your mortgage than you initially bargained for, possibly putting you at risk of mortgage stress.

What are fixed mortgage rates?

A fixed rate mortgage keep your interest rate the same for a pre-set length of time (often between 1 and 5 years). This can help to keep your household budgeting nice and simple, as your repayments remain the same from month to month for the duration of the fixed term. You’ll also be insulated from the effects of rising variable rates.

However, if mortgage rates fall, you won't enjoy the benefit of savings on your monthly repayments, as you'll still be locked into your fixed rate. Also, breaking from the predetermined repayment plan can often prove quite expensive in terms of break costs, so you may not enjoy as much financial flexibility from a fixed rate home loan.

What are split mortgage rates?

When you’re choosing between variable or fixed interest rates, some lenders allow you to enjoy the best of both worlds by offering a split rate home loan.

In a split rate mortgage, a fixed rate of interest is charged on a percentage of your loan, and a variable rate of interest is charged on the remainder.

The fixed percentage helps to keep your mortgage repayments relatively stable if rates rise, while the variable percentage allows you to benefit from some savings if mortgage rates fall.

What are comparison rates?

The comparison rate isn't another interest rate option like variable, fixed or split mortgage rates. Instead, it's a figure used to estimate the total cost of the loan during your mortgage rate comparison.

Most lenders charge fees (including upfront fees as well as ongoing fees such as annual fees) as well as interest on their home loans, which can make a big difference to their overall cost. When you compare mortgage rates, you may discover that a mortgage with a low interest rate and high fees can sometimes turn out to be more expensive than a mortgage with a higher interest rate and low or no fees.

To make the total cost of different mortgage offers clearer to borrowers, lenders are required to provide comparison rates for each of their home loans.

A comparison rate combines the interest rate of a mortgage with its standard fees and charges, and expresses the total as a single percentage. This can make comparing the approximate total cost of different home loans side by side much simpler.

It's important to remember that even a home loan's comparison rate may not include every fee and charge. For example, fees associated with optional home loan features may not be included when calculating its comparison rate.

Comparison rates across the mortgage industry are calculated assuming a $150,000 principal and interest mortgage with a 25 year term. While this helps ensure consistency, it also means comparison rates may not always accurately reflect the actual cost of your home loan.

Plus, some home loans come with extra features that can provide additional value, so it’s still important to conduct our own home loan comparison.

How to find your best mortgage rate

You can use a variety of tools and factors to find a mortgage rate you can be happy with, exploring and comparing hundreds of products that could get you a rate you're proud of. Between comparison tables, calculators, brokers, and the various features dotting each home loan option, a mortgage rate comparison is your ticket to understanding the home loan option to suit you best.

Comparison tables

One of the fastest and simplest ways to find a home loan with useful features and benefits, including an affordable interest rate, is to use the comparison tables on a site like RateCity.

Using the table filters, you can enter details of the type of loan you’re looking for, and narrow down your results to the most relevant home loan products. You can then compare the interest rates, fees, features, benefits, Real Time Ratings™ and more of the results.

Once you have a better idea of which home loan deals may best suit your needs, you can learn more about the loan or get in contact with the lender with just a click.

Home loan calculators

Home loan calculators can help you work out the cost of a home loan’s repayments. Entering the size of the loan, the term length and the interest rate can show you how much you can expect to pay for a loan on the property, both from month to month and in total over the long term.

You could also use a mortgage calculator to estimate your borrowing power. By entering a few details of your income, expenses, assets and liabilities, you can get an estimate of how much money a bank may lend you to purchase property.

Mortgage calculators can also be handy for calculating the effect of a few small changes to a home loan. For example, you could see what your repayments would look like if you had a lower interest rate, a shorter loan term, or a higher value property. You could also calculate if you could still comfortably afford our mortgage repayments if variable rates were to rise, and if you’d be able to avoid mortgage stress.

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A guide to mortgage stress

Households suffer mortgage stress when 30% or more of their pre-tax household income is being swallowed by mortgage repayments.

Life becomes stressful at this point because once households have paid for their mortgage, their day-to-day essentials, and other fixed costs, they will have little if any money left over. That's why it's so important to factor in interest rate rises before taking out a mortgage.

Go to a home loan calculator and punch in some numbers. Could you afford the mortgage repayments if interest rates rose by 1, 2 or 3 percentage points? If the answer is no, you may need to think long and hard before you compare mortgage rates and take out a home loan, because a rate change could place you in mortgage stress.

Can't find the right mortgage rate? Find a broker who can.

What else affects your home loan rate?

The interest rate advertised by a mortgage lender isn’t always the rate you’ll get when you apply for a home loan. The interest rate you’ll pay on your mortgage may depend on a variety of factors, including:

Your application

Applying for a home loan involves proving to a lender that you can comfortably afford the repayments, and that the risk of you defaulting on your mortgage is low. You can do so by providing proof of your income and expenses, such as payslips and bank statements. If you can show a lender that you’re a reliable and low-risk borrower, you may be offered a lower interest rate. 

Your deposit

Paying a larger deposit on your property may lead to paying a lower interest rate on your home loan. The more money you can put towards a deposit on a property, the more you can lower the mortgage's loan to value ratio (LVR). This reduces the risk of the lender losing money if it was forced to sell the property after a mortgage default, which could lead to lower interest rates. 

Your credit history

When you apply for a mortgage, the lender will perform a credit check. Because a mortgage is secured by the value of the property being purchased, your credit score may not play as large a role in your home loan application as it might when you’re applying for a personal loan or car loan. That said, if you have an excellent credit score, a lender may be willing to offer a lower interest rate to help secure your business.

Your borrower type

If you’re buying a property to live in as an owner-occupier, you may be offered a lower interest rate than if you were buying a property to rent out as an investor. Most lenders consider owner occupiers to be less likely to default on their repayments, as they have an interest in keeping a roof over their head and making progress towards owning their owner occupied home outright.

Your rate repayment type

If you choose to make principal and interest home loan repayments, you may be offered a lower interest rate than if you were to opt for interest-only repayments for a limited time.

This is because switching to interest-only repayments carries with it the risk that the borrower may be unable to afford the loan once it reverts back to principal and interest repayments, putting them at higher risk of default.

Extra features and benefits

As the old saying goes, you get what you pay for.

Choosing a home loan with a lot of extra features and benefits, such as options for additional repayments, a redraw facility, and an offset account, could mean paying more in interest charges or fees.

Sometimes a low rate "no-frills" home loan can offer greater value than a mortgage with a higher rate and features that you may not end up using. 

How to compare mortgage rates from big banks and other lenders

When comparing interest rates for home loans from Australia’s big banks, it's important to also consider the value these mortgage offer. For example, some banks are able to bundle access to savings and transaction accounts, credit cards, and other features in with a home loan, which may provide extra value to certain customers. Additionally, having a home loan with a big bank may let you benefit from their network of branches and ATMs.

Of course, some banks have relatively strict mortgage lending criteria, offering less flexibility to borrowers in nonconforming financial situations.

It may also be worth comparing home loan deals from non-bank lenders. Some of these non-bank lenders offer competitive mortgage rates, as well as flexible lending terms to better suit households in different financial situations, such as low-doc home loans for self-employed borrowers.

However, these lenders may not be able to provide the same kind of home loan features and services that are available from certain banks. Several non-bank lenders operate online only, meaning they can offer lower interest rates and fees, but don’t offer access to networks of branches or ATMs for managing your home loan in person.

While it's important to compare mortgage rates when selecting a home loan, there's plenty more to consider when looking at mortgage offers from different lenders:

  1. Are you applying for a new home loan, or refinancing an existing mortgage?
  2. Are you an owner occupier or an investor?
  3. Would you prefer a variable, fixed, or split mortgage rate?
  4. What are the fees? Have you looked at the comparison rate?
  5. How long is your loan term? Can you afford the repayments on your income?
  6. What mortgage features do you want? Can you get these, plus an affordable mortgage rate, from a bank or non-bank lender?

RateCity puts information on a wide variety of home loans all in one place, so you can quickly and efficiently compare mortgage rates, features and benefits, and narrow down your shortlist of potential loans to only those that best fit your financial situation.

Compare mortgage rates from over 100 banks & lenders

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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.

What is a comparison rate?

The comparison rate is a more inclusive way of comparing home loans that factors in not only on the interest rate but also the majority of upfront and ongoing charges that add to the total cost of a home loan.

The rate is calculated using an industry-wide formula based on a $150,000 loan over a 25-year period and includes things like revert rates after an introductory or fixed rate period, application fees and monthly account keeping fees.

In Australia, all lenders are required by law to publish the comparison rate alongside their advertised rate so people can compare products easily.

What is the average annual percentage rate?

Also known as the comparison rate, or sometimes the ‘true rate’ of a loan, the average annual percentage rate (AAPR) is used to indicate the overall cost of a loan after considering all the fees, charges and other factors, such as introductory offers and honeymoon rates.

The AAPR is calculated based on a standardised loan amount and loan term, and doesn’t include any extra non-standard charges.

How do I find out my current interest rate and how much is owing on my loan?

Your bank statements and/or your internet banking should show these details. If you are not sure, call your bank or estimate.

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. 

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 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.

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 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 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.

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.

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 does a mortgage calculator work?

A mortgage calculator is an extremely helpful tool when planning to take out a home loan and working out the costs. Although each mortgage calculator you come across may be slightly different, most will help you estimate how much your repayments will be. The calculator will often also show you the difference in repayments if you repay weekly, monthly or fortnightly. 

To calculate these figures, you’ll be asked to enter a few details. These include the amount you plan to borrow, whether you’re an owner-occupier or an investor, the proposed interest rate and the home loan term. It will also often show you the total interest you’ll be charged and the total amount you’ll repay over the life of the loan.  

Understanding how the mortgage calculator works, helps you to use it to see how different loan amounts, interest rates and terms affect your repayments. This can then help you choose a home loan that you can repay comfortably and save on interest costs. The mortgage calculator lets you compare the benefits and costs of home loans from different lenders to help you make a more informed choice. Use a mortgage calculator to help identify which home loan is most suitable for your requirements and financial situation.

What is the Home Loan Rate Promise?

The Home Loan Rate Promise is RateCity putting its money where its mouth is. We believe that too many Australians are paying too much for their home loans. We’re so confident we can help Aussies save money, if we can’t beat your current rate, we’ll give you a $100 gift card.*

There are two reasons it pays to check your rate with the Home Loan Rate Promise:

  • You can find out how much you could save on your home loan by switching to a loan with a lower interest rate
  • If we can’t beat your current rate, you can claim a $100 gift card with our Home Loan Rate Promise*

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 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.

What are the responsibilities of a mortgage broker?

Mortgage brokers act as the go-between for borrowers looking for a home loan and the lenders offering the loan. They offer personalised advice to help borrowers choose the right home loan for their needs.

In Australia, mortgage brokers are required by law to carry an Australian Credit License (ACL) if they offer credit assistance services. Which is the legal term for guidance regarding the different kinds of credit offered by lenders, including home loan mortgages. They may not need this license if they are working for an aggregator, for instance, as a franchisee. In both these situations, they need to comply with the regulations laid down by the Australian Securities and Investments Commission (ASIC).

These regulations, which are stipulated by Australian legislation, require mortgage brokers to comply with what are called “responsible lending” and “best interest” obligations. Responsible lending obligations mean brokers have to suggest “suitable” home loans. This means loans that you can easily qualify for,  actually meet your needs, and don’t prove unnecessarily challenging for you.

Starting 1 January 2021, mortgage brokers must comply with best interest obligations in addition to responsible lending obligations. These require mortgage brokers to act in the best interest of their customers and also requires them to prioritise their customers’ interests over their own. For instance, a mortgage broker may not recommend a lender who gives them a commission if that lender’s home loan offer does not benefit that particular customer.

What is a standard variable rate (SVR)?

The standard variable rate (SVR) is the interest rate a lender applies to their standard home loan. It is a variable interest rate which is normally used as a benchmark from which they price their other variable rate home loan products.

A standard variable rate home loan typically includes most, if not all the features the lender has on offer, such as an offset account, but it often comes with a higher interest rate attached than their most ‘basic’ product on offer (usually referred to as their basic variable rate mortgage).

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. 

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.

Fact Check Verification

The information on this page was fact checked by Tony Harris, a broker in New South Wales specialising in home loans, go-between loans, and commercial property loans. For more information on how brokers like this can assist you, look for a broker near you