Home Loan Comparison

The RBA has begun cutting the cash rate after a series of hikes in recent years, so now is the time to compare home loans. It’s simple and quick, and you can find home loan rates as low as 4.99% (comparison rate^ 5.32%). Compare home loan rates from our Online Partners below.

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promoted
Fees & charges apply. Australian Credit Licence 237391.
5.54%
Variable
5.57%
$2,852
Principal & Interest
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Cashback up to $4,000*
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$0 application fees, monthly or annual fees
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Apply Online
Cashback
Owner occupied
20% min deposit
Redraw facility
Fees & charges apply. Australian Credit Licence 237391.
Fees & charges apply. Australian Credit Licence 237391.
promoted
Fees & charges apply. Australian Credit Licence 395219.
5.54%
Variable
5.58%
$2,852
Principal & Interest
dot
Available for purchase or refinance, min 10% deposit
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Fast turnaround times to meet tight settlement timeframes
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No application, ongoing or monthly fees.
Owner occupied
10% min deposit
Redraw facility
Fees & charges apply. Australian Credit Licence 395219.
Fees & charges apply. Australian Credit Licence 395219.
promoted
Fees & charges apply. Australian Credit Licence 234945.
5.49%
Variable
5.40%
$2,836
Principal & Interest
dot
A simple low rate with an increasing discount.
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Apply in minutes. No Unloan Fees.
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Fee-free extra repayments and redraw.
Owner occupied
20% min deposit
Redraw facility
Fees & charges apply. Australian Credit Licence 234945.
Fees & charges apply. Australian Credit Licence 234945.
promoted
Fees & charges apply. Australian Credit Licence 230686. Products issued by ubank, part of NAB.
5.69%
Variable
5.71%
$2,899
Principal & Interest
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Easy application. Fast approval. No annual fee.
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Unlimited additional repayments free of charge.
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Products issued by Ubank, part of NAB
Owner occupied
20% min deposit
Redraw facility
Fees & charges apply. Australian Credit Licence 230686. Products issued by ubank, part of NAB.
Fees & charges apply. Australian Credit Licence 230686. Products issued by ubank, part of NAB.
promoted
Fees & charges apply. Australian Credit Licence 240701.
5.63%
Variable
5.66%
$2,880
Principal & Interest
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Award-winning products and service. Fast approvals.
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Discover competitive rates, no ongoing fees & flexible options.
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P&N Bank is your local way home.
Owner occupied
40% min deposit
Redraw facility
Fees & charges apply. Australian Credit Licence 240701.
Fees & charges apply. Australian Credit Licence 240701.
promoted
Fees & charges apply. Australian Credit Licence 234945.
5.49%
Variable
5.40%
$2,836
Principal & Interest
Owner occupied
20% min deposit
Redraw facility
Fees & charges apply. Australian Credit Licence 234945. Star Rating for a $500k owner occupier variable rate P+I loan at 80% LVR
Fees & charges apply. Australian Credit Licence 234945. Star Rating for a $500k owner occupier variable rate P+I loan at 80% LVR
promoted
Fees & charges apply. Australian Credit Licence 237476.
5.49%
Variable
5.50%
$2,836
Principal & Interest
Cashback
Owner occupied
20% min deposit
Redraw facility
Fees & charges apply. Australian Credit Licence 237476. Star Rating for a $500k owner occupier variable rate P+I loan at 80% LVR
Fees & charges apply. Australian Credit Licence 237476. Star Rating for a $500k owner occupier variable rate P+I loan at 80% LVR
promoted
Fees & charges apply. Australian Credit Licence 238311.
5.49%
Variable
5.53%
$2,836
Principal & Interest
Owner occupied
40% min deposit
Redraw facility
Fees & charges apply. Australian Credit Licence 238311. Star Rating for a $500k owner occupier variable rate P+I loan at 80% LVR
Fees & charges apply. Australian Credit Licence 238311. Star Rating for a $500k owner occupier variable rate P+I loan at 80% LVR
promoted
Fees & charges apply. Australian Credit Licence 496431.
5.54%
Variable
5.55%
$2,852
Principal & Interest
Owner occupied
10% min deposit
Redraw facility
Fees & charges apply. Australian Credit Licence 496431. Star Rating for a $500k owner occupier variable rate P+I loan at 80% LVR
Fees & charges apply. Australian Credit Licence 496431. Star Rating for a $500k owner occupier variable rate P+I loan at 80% LVR
promoted
Fees & charges apply. Australian Credit Licence 237391.
5.54%
Variable
5.57%
$2,852
Principal & Interest
Cashback
Owner occupied
20% min deposit
Redraw facility
Fees & charges apply. Australian Credit Licence 237391. Star Rating for a $500k owner occupier variable rate P+I loan at 80% LVR
Fees & charges apply. Australian Credit Licence 237391. Star Rating for a $500k owner occupier variable rate P+I loan at 80% LVR
promoted
Fees & charges apply. Australian Credit Licence 395219.
5.54%
Variable
5.58%
$2,852
Principal & Interest
Owner occupied
10% min deposit
Redraw facility
Fees & charges apply. Australian Credit Licence 395219. Star Rating for a $500k owner occupier variable rate P+I loan at 80% LVR
Fees & charges apply. Australian Credit Licence 395219. Star Rating for a $500k owner occupier variable rate P+I loan at 80% LVR
promoted
Fees & charges apply. Australian Credit Licence 236476.
4.99%
3 year fixed
5.75%
$2,681
Principal & Interest
Owner occupied
5% min deposit
Redraw facility
Fees & charges apply. Australian Credit Licence 236476. Star Rating for a $500k owner occupier 3 year fixed rate P+I loan at 80% LVR
Fees & charges apply. Australian Credit Licence 236476. Star Rating for a $500k owner occupier 3 year fixed rate P+I loan at 80% LVR
promoted
Fees & charges apply. Australian Credit Licence 244533.
5.49%
Variable
5.85%
$2,836
Principal & Interest
Owner occupied
20% min deposit
Redraw facility
Fees & charges apply. Australian Credit Licence 244533. Star Rating for a $500k owner occupier variable rate P+I loan at 80% LVR
Fees & charges apply. Australian Credit Licence 244533. Star Rating for a $500k owner occupier variable rate P+I loan at 80% LVR
promoted
Fees & charges apply. Australian Credit Licence 231204.
4.99%
2 year fixed
5.86%
$2,681
Principal & Interest
Owner occupied
20% min deposit
Redraw facility
Fees & charges apply. Australian Credit Licence 231204. Star Rating for a $500k owner occupier 2 year fixed rate P+I loan at 80% LVR
Fees & charges apply. Australian Credit Licence 231204. Star Rating for a $500k owner occupier 2 year fixed rate P+I loan at 80% LVR
promoted
Fees & charges apply. Australian Credit Licence 238311.
5.30%
2 year fixed
5.38%
$2,777
Principal & Interest
Owner occupied
5% min deposit
Redraw facility
Fees & charges apply. Australian Credit Licence 238311. Star Rating for a $500k owner occupier 2 year fixed rate P+I loan at 80% LVR
Fees & charges apply. Australian Credit Licence 238311. Star Rating for a $500k owner occupier 2 year fixed rate P+I loan at 80% LVR
promoted
Fees & charges apply. Australian Credit Licence 236476.
5.39%
Variable
5.46%
$2,805
Principal & Interest
Owner occupied
40% min deposit
Redraw facility
Fees & charges apply. Australian Credit Licence 236476. Star Rating for a $500k owner occupier variable rate P+I loan at 80% LVR
Fees & charges apply. Australian Credit Licence 236476. Star Rating for a $500k owner occupier variable rate P+I loan at 80% LVR
promoted
Fees & charges apply. Australian Credit Licence 496431.
5.29%
2 year fixed
5.50%
$2,773
Principal & Interest
Cashback
Cashback
Owner occupied
10% min deposit
Redraw facility
Fees & charges apply. Australian Credit Licence 496431. Star Rating for a $500k owner occupier 2 year fixed rate P+I loan at 80% LVR
Fees & charges apply. Australian Credit Licence 496431. Star Rating for a $500k owner occupier 2 year fixed rate P+I loan at 80% LVR
promoted
Fees & charges apply. Australian Credit Licence 214077.
5.49%
Variable
5.52%
$2,836
Principal & Interest
Owner occupied
40% min deposit
Redraw facility
Fees & charges apply. Australian Credit Licence 214077. Star Rating for a $500k owner occupier variable rate P+I loan at 80% LVR
Fees & charges apply. Australian Credit Licence 214077. Star Rating for a $500k owner occupier variable rate P+I loan at 80% LVR
promoted
Fees & charges apply. Australian Credit Licence 238981.
5.49%
Variable
5.55%
$2,836
Principal & Interest
Owner occupied
40% min deposit
Redraw facility
Fees & charges apply. Australian Credit Licence 238981. Star Rating for a $500k owner occupier variable rate P+I loan at 80% LVR
Fees & charges apply. Australian Credit Licence 238981. Star Rating for a $500k owner occupier variable rate P+I loan at 80% LVR
promoted
Fees & charges apply. Australian Credit Licence 388053.
5.54%
Variable
5.59%
$2,852
Principal & Interest
Cashback
Owner occupied
40% min deposit
Redraw facility
Fees & charges apply. Australian Credit Licence 388053. Star Rating for a $500k owner occupier variable rate P+I loan at 80% LVR
Fees & charges apply. Australian Credit Licence 388053. Star Rating for a $500k owner occupier variable rate P+I loan at 80% LVR
promoted
Fees & charges apply. Australian Credit Licence 237391.
5.64%
Variable
5.76%
$2,883
Principal & Interest
Cashback
Owner occupied
20% min deposit
Redraw facility
Fees & charges apply. Australian Credit Licence 237391. Star Rating for a $500k owner occupier variable rate P+I loan at 80% LVR
Fees & charges apply. Australian Credit Licence 237391. Star Rating for a $500k owner occupier variable rate P+I loan at 80% LVR
promoted
Fees & charges apply. Australian Credit Licence 237502.
5.19%
3 year fixed
5.54%
$2,742
Principal & Interest
Owner occupied
30% min deposit
Fees & charges apply. Australian Credit Licence 237502. Star Rating for a $500k owner occupier 3 year fixed rate P+I loan at 80% LVR
Fees & charges apply. Australian Credit Licence 237502. Star Rating for a $500k owner occupier 3 year fixed rate P+I loan at 80% LVR
promoted
Fees & charges apply. Australian Credit Licence 237502.
5.19%
2 year fixed
5.58%
$2,742
Principal & Interest
Owner occupied
30% min deposit
Fees & charges apply. Australian Credit Licence 237502. Star Rating for a $500k owner occupier 2 year fixed rate P+I loan at 80% LVR
Fees & charges apply. Australian Credit Licence 237502. Star Rating for a $500k owner occupier 2 year fixed rate P+I loan at 80% LVR
promoted
Fees & charges apply. Australian Credit Licence 237502.
5.29%
2 year fixed
5.64%
$2,773
Principal & Interest
Owner occupied
20% min deposit
Fees & charges apply. Australian Credit Licence 237502. Star Rating for a $500k owner occupier 2 year fixed rate P+I loan at 80% LVR
Fees & charges apply. Australian Credit Licence 237502. Star Rating for a $500k owner occupier 2 year fixed rate P+I loan at 80% LVR
promoted
Fees & charges apply. Australian Credit Licence 240701.
5.63%
Variable
5.66%
$2,880
Principal & Interest
Owner occupied
40% min deposit
Redraw facility
Fees & charges apply. Australian Credit Licence 240701. Star Rating for a $500k owner occupier variable rate P+I loan at 80% LVR
Fees & charges apply. Australian Credit Licence 240701. Star Rating for a $500k owner occupier variable rate P+I loan at 80% LVR

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The initial results in the table above are sorted by Star Rating (High-Low) , then Comparison rate^ p.a. (Low-High) , then Provider Name (Alphabetical) . Additional filters may have been applied, which impact the results displayed in the table - filters can be applied or removed at any time.

promoted
Fees & charges apply. Australian Credit Licence 237391.
Interest rate p.a.
Comparison rate^ p.a.
Monthly repayment
5.54%
Variable
5.57%
$2,852
Principal & Interest
IMB Bank Budget Home Loan
Enjoy up to $4,000 cashback when you switch your eligible home loan to IMB Bank. Terms and Conditions Apply
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Fees & charges apply. Australian Credit Licence 237391. See Terms & Conditions. ^ Comparison Rate Warning. Star Rating for a $500k owner occupier variable rate P+I loan at 80% LVR
Fees & charges apply. Australian Credit Licence 237391. See Terms & Conditions. ^ Comparison Rate Warning. Star Rating for a $500k owner occupier variable rate P+I loan at 80% LVR

Why compare home loans with Canstar?

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No cost to you

Using our comparison tool to find a better deal is free. We may receive a commission from our online partners if you apply for a home loan you find on our site

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Expert research

Our team of home loan research experts crunch the numbers to rate home loans based on value (price as well as features) to help you compare. Read the home loans methodology.

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A wide range of lenders

We rate and review home loans from more than 105 brands which means you can compare and choose products from both large and challenger brands, established and new. and brands you might not have access to via a mortgage broker.

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Easy to compare & apply

Our home loan comparison tool allows you to filter your search results so it’s easy to find the right product for you. What’s more, you can click straight through to many of our online lenders, making it easy to apply instantly.

Compare home loan interest rates from 80+ lenders

We have all the major banks plus lots of other lenders too

Better deals are found when you compare

Canstar helps millions of Australians each year compare and find better deals

 

Home loan guides and resources

Canstar’s articles and guides can help you understand the steps involved in getting a home loan, whether you’re buying your first home or looking for a better deal on your current loan.

View all FAQs in the Home Loan Guide

Sally Tindall’s guide to comparing home loans

Home loan tips from our experts

Your rate is important

Rate isn’t the only factor to consider when selecting a home loan, but for many, it’s a critical one. Not only will a low rate give you bragging rights at your next BBQ, it will also see you pay less interest to your bank – money you can reinvest back into your loan to help you pay it off sooner.

If you’re on a variable rate, know that it’s negotiable. Check your rate against the competition at least twice a year and if it doesn’t stack up, call your bank and ask for a rate cut.

Offset accounts don’t have to be more expensive

Offset accounts can be a great way to reduce your daily interest bill, however, they sometimes come with higher rates. This doesn’t have to be the case. Plenty of lenders now offer the same rate regardless of whether you have this feature, which means you can have your cake and eat it too.

Loyalty doesn’t often pay

Banks can and do cut rates outside of the RBA, however, these discounts are often reserved for new customers, not existing ones. If you haven’t switched lenders in the last couple of years, now’s the time to check whether your loyalty is being taken for a ride.

A quick calculation on how much you could save, even after paying switch fees, is likely to be enough to spur you into action.

Sally Tindall, Canstar Director of Data Insights

One of Australia’s leading financial and political commentators, Sally Tindall serves as Canstar’s official spokesperson and Director of Data Insights. An advocate for national financial literacy, Sally regularly provides industry commentary and consumer insights within the banking, insurance, energy, and broader financial services industries, empowering Australians to make financially sound choices.

Sally has been a celebrated critic of the Australian housing market landscape for decades. Her straight-talking, industry insights seek to support home owners to make informed decisions when navigating the property ladder and when choosing a home loan. Her expert insights are frequently sought by leading Australian media outlets including The Australian, Herald Sun, Sydney Morning Herald, Brisbane Times, The Australian Financial Review, Canberra Times, ABC, Domain.com.au, realestate.com.au, 9news, and Yahoo! Finance. Sally’s extensive career includes working across all levels of Australian government, notably for the Hon. Julia Gillard, where she contributed to Federal Budgets focused on easing living costs and led communications at multinational finance forums like the G20 and APEC. Follow Sally on LinkedIn.

Latest in home loans

 

Compare Home Loan Interest Rates

Canstar assesses over 3,000 mortgage interest rates from more than 80 providers across Australia, to help you compare home loans and find a home loan to suit your needs.

What is a home loan or mortgage?

A home loan or mortgage is a loan from a bank or other financial institution to buy, build, refinance, or renovate a residential property. In Australia, a home loan typically has a 25-year or 30-year loan term, is repaid via regular payments and accrues interest. Interest is what a lender charges to let you borrow money, written as a percentage of the home loan amount.

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What are the different types of home loans in Australia?

There are a number of different types of home loans or mortgages available in Australia, and the type best-suited to you will depend largely on your personal circumstances and preferences, including why you are taking out a home loan.

Here is an explanation of some of the most common types of home loans you are likely to encounter. A single loan can potentially be a combination of two or three of these, based on its interest rate type, repayment type and loan purpose.

Variable rate home loans

A variable home loan interest rate can fluctuate according to the lender’s wishes, although banks are often influenced by economic factors such as the official cash rate set by the Reserve Bank of Australia.

The rate can go up or down over time, varying your repayments. These loans generally allow for greater flexibility and more features than fixed rate loans, though their interest rates can sometimes be higher as well.

Fixed rate home loans

A fixed rate home loan allows a borrower to lock in an interest rate for a particular period of time, typically from one year up to five years. The interest rate that the borrower pays will remain the same for that amount of time, regardless of any rises or falls in the RBA cash rate or the lender’s variable rates.

The home loan rate will then normally revert to variable, unless the lender and borrower agree to roll it over for another fixed term.

Split rate home loans

A split home loan refers to when a customer pays a fixed rate on part of their home loan and a variable rate on the rest of it.

Principal and interest home loans

If a loan has principal and interest repayments, this means the borrower has to pay back the loan amount alongside the interest throughout the life of the loan.

Interest-only home loans

An alternative to principal and interest, an interest-only home loan is where the borrower only has to pay back the interest on the loan for the first few years, before the loan reverts to principal and interest repayments.

This may suit some borrowers as it can lead to lower repayments in the short-term, but interest-only loans tend to work out more expensive in the long run.

Owner-occupier home loans

These are home loans where the borrower intends to live in the property rather than renting it out to make money. Interest rates on these mortgages tend to be slightly cheaper than on investor loans.

Owner-occupier loans can be further broken down based on the borrower’s intentions, including whether they are taking out the loan to buy their first home, to buy another home, to build a home on vacant land or to refinance an existing home loan.

These differences can affect the products or rates you can access in some cases. For example, you may be eligible for certain discounts or special offers if you are a first home buyer.

Investor home loans

These are loans for property investors who plan to rent or sell the property they’re buying for a profit rather than living in it.

Both owner-occupier and investor home loans can be fixed, variable or split, and may offer principal and interest or interest-only repayments, depending on the specific lender and loan.

Compare home loans for investment properties

 

Regardless of which type of home loan you choose, it’s important to bear in mind that a home loan is almost always secured against your property, so if you are unable to continue paying the loan, the lender may ultimately be able to evict you from the property and sell it to settle the debt.

If you have another person act as a guarantor for your home loan, that person may also have to pay back the debt if you can’t meet your repayments. 

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Why should I compare home loans?

With thousands of home loans on the market in Australia, the amount of choice available to you could seem overwhelming. Whether you are a first home buyer, looking for find a loan that’s suitable for you, or a refinancer, looking for a cheaper rate than the one you’re currently on, comparing home loans can allow you to find a loan that fits your needs and circumstances, and save hundreds if not thousands in fees and interest rates over the course of the loan.

In addition to saving money, comparing home loans can also help you find the best home loan that meets your needs and requirements. For example, if you want a home loan that will allow you to make additional repayments in order to pay down the balance faster, or even an interest only home loan that could help you save on repayments in the short term, then comparing home loans can help you find just the kind of loan you need.

How to compare home loans?

Canstar currently compares more than 3,000 home loans, providing home buyers with confidence when they compare mortgages and interest rates.

Use our home loan comparison selector by adding information that applies to you, and then hitting the “compare” button. You will be presented with a list of products, which will typically be ordered according to their Canstar Star Rating, or their applicable comparison rate.

To help you make a decision about what may be the best mortgage for your needs, you can change the order of the results by adjusting the settings at the top of the table, and change what you see in the table via the filter function.

When it comes to comparing home loans, the interest rate is an important consideration and can make a significant difference in the total cost of any loan. However, there are a number of other factors you may also want to consider. These factors include:

Compare home loan rates

Home loan interest rates can vary significantly between home loan providers. Home loans are a long-term debt, and even small differences in interest rates can make a big difference to the total amount you will pay on your loan over its lifetime. So, combining the best mortgage rate you can find with low fees and quality features can be important when looking for the best home loan rates.

You can use our Home Loan Calculator to help you work out what your interest rate could cost you, both in monthly repayments and over the life of the loan.

Looking for the cheapest or lowest home loan rate?

Whether you’re buying a new home, building or refinancing, you may be tempted to sign up for the cheapest home loan you can find. It’s worth keeping in mind that going with the lowest interest rate won’t necessarily mean you’re getting the cheapest home loan deal or the best home loan rates in the long run. Upfront and ongoing fees can cancel out some of the money you’d save in interest, while the features you get with the loan may boost the value you’re getting overall. For example, a home loan with a slightly higher interest rate but which allows you to make extra repayments and offset interest might better suit the needs of some homeowners and help them get ahead faster than the ‘cheapest’ advertised home loan rate.

About our home loan experts


Nina Rinella, Editor-in-Chief 

Author Nina Tovey

As Canstar’s Editor-in-Chief, Nina heads up a team of talented journalists committed to helping empower consumers to take greater control of their finances. Previously Nina founded her own agency where she provided content and communications support to clients around Australia for eight years. She also spent four years as the PR Manager for American Express Australia, and has worked at a Brisbane communications agency where she supported dozens of clients, including Sunsuper and Suncorp.

Nina has ghostwritten dozens of opinion pieces for publications including The Australian and has been interviewed on finance topics by the Herald Sun and the Sydney Morning Herald. When she’s not dreaming up ways to put a fresh spin on finance, she’s taking her own advice by trying to pay her house off as quickly as possible and raising two money-savvy kids.

Nina has a Bachelor of Journalism and a Bachelor of Arts with a double major in English Literature from the University of Queensland. She’s also an experienced presenter, and has hosted numerous events and YouTube series.

You can follow her on Linkedin or Canstar on Facebook.


Josh Sale, Home Loans Ratings Manager

Joshua Sale, Ratings ManagerAs Canstar’s Group Manager, Research, Ratings & Product Data, Josh Sale is responsible for the methodology and delivery of Canstar’s Home Loan Star Ratings and Awards. With tertiary qualifications in economics and finance, Josh has worked behind the scenes for the last five years to develop Star Ratings and Awards that help connect consumers with the right home loan for them.

Josh is passionate about helping consumers get hands-on with their home loans, always reminding home buyers that finding the right loan can be as important for your finances as negotiating a fair property purchase price. Josh has been interviewed by media outlets such as the Australian Financial Reviewnews.com.au and Money Magazine, discussing topics including home loan equity and wider finance trends.

When it comes to Josh’s own property journey, the home loans expert once bought two houses in the same transaction when he ensured the cubby house his daughter loved was listed on the purchase contract for his new home. You can follow Josh on LinkedIn, and Canstar on X and Facebook.

Got questions? We have answers...

Please note that these are a general explanation of the meaning of terms used in relation to home loans or mortgages.

The wording of loan terms and conditions may use different phrases or terms, and you should read the terms and conditions of the relevant loan to understand the features and cost of that loan. You cannot rely on these terms to be part of any loan you may take out.

Refer to the lender’s Key Facts Sheet, Target Market Determination and other applicable product documentation, and see Canstar’s Financial Services and Credit Guide (FSCG).

 

How to get a home loan?

Generally speaking, the process of getting a home loan involves comparing your options, working out how much you can afford to borrow for the property you want to buy, and then applying for a specific home loan – either directly to the lender of your choice or indirectly, via a mortgage broker.

If the lender approves your application and agrees to lend you the money you requested, it will offer this money to you in the form of a home loan.

You will then need to pay back the loan over time, in line with the lender’s terms and conditions.

How much can I borrow for a home loan?

The amount of money you are able to borrow for a home loan will depend on your personal financial circumstances, as well as the loan provider you choose and its lending policies.

You may be able to borrow more or less money depending on the lender’s assessment of your circumstances, which could include your credit score.

How much deposit do I need for a home loan?

As a general rule of thumb, it is often worth saving up a deposit of at least 20% of the value of the property you want to buy.

Lenders may also refer to this as a maximum loan-to-value ratio (LVR) of 80%, with your deposit being the other 20%.

The reason this number is important is that borrowers with smaller deposits often have to pay for lenders mortgage insurance (LMI), which we explain in more detail below.

Another advantage of saving up as big a deposit as you can is that it can reduce the total cost of your home loan, as interest is only charged on the money you borrow.

That said, there are some ways you may be able to reduce the amount of LMI you need to pay or avoid paying it altogether, even if you have a small deposit.

One example of this is the Federal Government’s First Home Guarantee scheme, which allows eligible participants to take out a loan with as little as a 5% deposit, without needing to pay LMI.

How do I calculate home loan interest?

When you’re comparing home loans, you will usually see products advertised with an interest rate and a comparison rate, each expressed as a percentage of the loan amount.

The interest rate is the proportion of the outstanding home loan amount that you have to pay in interest each year.

A common practice is for lenders to spread out the interest you pay throughout the full term of the loan.

Bear in mind that these advertised interest rates generally don’t include any fees and charges on the loan.

A comparison rate (explained in more detail below) is a government-mandated interest rate designed to give borrowers a fuller picture of the costs of a home loan, as it includes the effect of many of these fees and charges.

Canstar offers a mortgage repayment calculator that lets you estimate how much interest you might have to pay on a home loan, based on the amount you borrow and your interest rate.

Bear in mind that this calculator doesn’t include the effects of any upfront or ongoing fees, and for simplicity’s sake it assumes your interest rate remains the same throughout the loan.

What is a comparison rate?

A comparison rate is an interest rate figure designed to represent the total annual cost of the loan, including its annual interest rate and most ongoing and upfront fees and charges.

Under the law and on the Canstar website, all comparison rates for home loans in Australia are based on a $150,000 loan over 25 years.

What is the difference between a home loan and a mortgage?

The term ‘home loan’ refers to the money that someone borrows in order to purchase a property. The term ‘mortgage’, on the other hand, refers specifically to an agreement between a borrower and a lender, in which a property is used as security for a loan.

Simply put, a mortgage exists in order to protect a lender from default. If a borrower (mortgagor) falls behind in their home loan repayments, their lender (mortgagee) has the right to sell the property on which the loan is secured in order to recoup the balance of the loan.

How to refinance a home loan?

The process for refinancing a home loan is similar in many ways to applying for any other home loan.

Borrowers still have the choice of which home loan to apply for, and you don’t necessarily have to stick with the same lender who gave you your original loan.

In fact, a number of lenders offer incentives to people who refinance from a different bank.

Bear in mind, though, that these incentives aren’t the only factor to consider, and that you may have to pay certain application or switching fees if you do choose to change lenders.

Should I fix my home loan?

The decision of whether or not to fix your home loan is a personal one, and should be considered carefully in light of your financial needs.

For example, if you think variable interest rates will rise in the near future, getting a good deal on a fixed rate could be one way to lock in a rate you’re happy with for a few years, so the best home loan for you might be a fixed rate.

On the other hand, ASIC’s Moneysmart notes that fixed rate home loans often have fewer features than variable ones, and locking in now could mean you miss out on some savings if variable rates fall during your fixed term.

If you’re unsure, taking out a split loan could be one option to consider, though some lenders may charge a fee for this.

How long does home loan approval take?

The length of time it takes for a lender to approve or reject your home loan application may vary, depending on factors such as the particular lender you choose and your financial situation.

In some cases, obtaining home loan pre-approval or conditional approval beforehand may speed up the time it takes your chosen lender to assess your formal application.

What is home loan pre-approval?

Home loan pre-approval, also known as conditional approval, is an initial approval process where a bank provides a borrower with an estimate of how much they could borrow, based on information they have provided to the bank.

Pre-approval does not necessarily mean the bank will approve the borrower’s formal home loan application, but it can nonetheless give a borrower more confidence in working out how much they can realistically afford to spend on a property.

What is lenders mortgage insurance (LMI)?

Lenders mortgage insurance is a type of insurance that a lender takes out to protect itself in case of default from the borrower, but which the borrower must pay for.

It usually applies to home loans with a high LVR (more than 80%), or in other words when the borrower has a deposit of less than 20% of the property’s value.

What is LVR (loan-to-value ratio)?

The loan-to-value ratio (LVR) of a home loan is the amount you are borrowing under it, as a proportion of the lender’s valuation of the property you’re buying.

For example, a bank may approve your loan for 80% of the property value – an LVR of 80% – in which case you would need to pay the remaining 20% as your deposit. Many lenders’ best mortgage rates are reserved for borrowers with a low LVR.

What is a credit rating (credit score)?

A credit rating or credit score is an assessment of the creditworthiness of an individual borrower, based on their borrowing and repayment history (as shown on their credit report).

Lenders consider your credit rating when deciding whether or not to give you a loan, how much to lend you, and what interest rate you will pay.

What is equity?

Equity is the difference between the value of your property and the outstanding balance of the loan that was used to fund it. For example, if an owner has purchased a house valued at $400,000 and has paid the loan down by $100,000, the owner has equity in the property of $100,000.

Equity can potentially be negative, if your property’s value falls below the balance of your mortgage.

Some property investors may use their positive equity in properties they already own to help them access additional investment home loans.

What is the First Home Owner Grant (FHOG)?

The First Home Owner Grant (FHOG) is a government grant given to first home buyers.

What is the First Home Loan Deposit Scheme?

The First Home Guarantee (FHBG), formerly known as the First Home Loan Deposit Scheme (FHLDS), is an Australian Government program aimed at helping eligible home buyers get a leg up onto the property ladder for the first time.

The scheme allows up to 35,000 low- and middle-income earners a year to secure a partially government-guaranteed loan with a deposit of as little as 5% of a property’s value, without needing to pay for Lender’s Mortgage Insurance (LMI).

The first round of the scheme opened on 1 January 2020, and the most recent update came into effect on 1 July 2023. There are currently 35,000 paces available each year across the scheme.

In addition to this, there are 5,000 places available annually under the Family Home Guarantee scheme and 10,000 places per year under the Regional Home Guarantee scheme.

What is a home loan guarantor?

If someone “goes guarantor” on your loan, it means that they are promising (“guaranteeing”) that they will be liable for the loan if repayments are not made.

The guarantor must also be able to demonstrate their own capacity to repay your loan.

How does negative gearing work?

Negative gearing is when the income (such as rent) that an investor makes from an investment property is less than the interest and fees on the home loan and the maintenance costs for that property. Negative gearing is currently available as a tax deduction against that investor’s income.

What is a mortgage offset account?

A mortgage or home loan offset account is a savings account linked to your home loan to reduce the interest charged on the loan. The money (or credit) in your account is offset daily against your loan balance, which reduces the daily mortgage interest charges.

What is a redraw facility?

A home loan redraw facility is a feature that enables the borrower to withdraw funds they have already paid.

Usually, this is conditional based on if they are far enough ahead on their loan repayments. This is not available on all loans.

The ‘best’ home loan rate is a subjective concept, and will ultimately depend on your individual needs and circumstances. For example, if you are looking to refinance, then the best home loan may be one with a rate lower than you’re currently paying; if you are a first home buyer and are keen to pay your property off as soon as possible, then the ‘best’ loan may be one that allows you to make additional repayments, or one with an offset account, that you can use for everyday banking while lowering the balance of your home loan. Comparing home loans or speaking to a qualified mortgage broker can be ways to help find the best home loan rate for you in your particular situation.

  • At its May 2025 board meeting, the RBA’s board cut the cash rate to 3.85%, the second cut of the year, following an initial 25 basis point cut in June. The bank’s board is due to announce its next decision on Tuesday July 8, with two of the nation’s big four banks predicting cuts.
  • Economists at CommBank predict cash rate cuts in July and August, while Westpac predict cuts in August and November. NAB predicts cuts in July, August and November while ANZ predicts just one more cut for 2025, to take place in August.
  • The latest CPI report, for the first quarter of 2025, shows headline CPI unchanged at 2.4%, and trimmed mean CPI, which is the key core inflation indicator, down to 2.9%. This is within the RBA’s target band of 1-3%, and is potentially a positive sign pointing to further rate cuts in 2025.
  • When the RBA raises the cash rate, banks and lenders tend to raise their own home loan variable rates. Federal Treasurer Jim Chalmers has said that cash rate cuts in the second half of 2025 could mean savings of “hundreds of dollars” for households with variable rate mortgages.

Below is a list of the winning home loan providers from Canstar’s 2025 Outstanding Value – Home Lender Award:

  • Australian Mutual Bank
  • Community First Bank
  • Easy Street
  • G&C Mutual Bank
  • Newcastle Permanent
  • Pacific Mortgage Group
  • People’s Choice
  • Tiimely Home
  • Up

Canstar’s Home Loan Star Ratings and Awards compare pricing and features across home loan products and providers on our database. Browse the categories below to find out which products received a 5-Star Rating and who Canstar’s latest Award-winning home loan providers are.

We compare more than 5,800 products from over 90 providers.

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What is a Target Market Determination?

A Target Market Determination (‘TMD’) is a document that explains which people particular financial products may be suitable for (the target market) and sets out any conditions around how financial products can be distributed to consumers.

Why do product issuers provide Target Market Determinations?

From 5 October 2021, TMDs are compulsory for most financial products.

Issuers and distributors of financial products must take reasonable steps that are likely to result in financial products reaching consumers in the target market defined by the product issuer.

We recommend that you consider the TMD before making a purchase decision. Contact the product issuer directly for a copy of the TMD.

Any advice on this page is general and has not taken into account your objectives, financial situation or needs. Consider whether this general financial advice is right for your personal circumstances. Canstar provides information about credit products. We’re not suggesting or recommending a particular credit product for you. If you decide to apply for a loan, you will deal directly with the provider, not with Canstar. Consider the Target Market Determination (TMD) before making a purchase decision. Contact the product issuer directly for a copy of the TMD. It’s important you check rates and product information directly with the provider. For more information, read our Detailed Disclosure. ^Read the Comparison Rate Warning.

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Before you elect to terminate or modify existing lending arrangements, we recommend you consider (i) your personal circumstances, and (ii) any associated fees, exit costs and application costs that may be applicable as well as the impact these changes could have on you. We suggest you consider seeking independent advice from a qualified adviser.

“Interest-only loan” generally means a loan where you will only pay interest during the interest-only term. That means you won’t be making payments which reduce debt during the interest-only term.