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“With over a 2.65% difference between the lowest & highest home loan comparison rates on our database, it could be a good time to review your loan.”
Canstar News - August 12th
Online-only home lender Athena launched dynamic pricing with its AcceleRates loan today, where customers' interest rates are lowered as they pay off more of their home loan. Athena notes it is the first lender in Australia...– Read more
Canstar News - August 10th
Auction clearance rates have been just one of the property market indicators influenced by pandemic lockdown conditions in 2020. Clearance rates experienced a downturn when on-site auctions and property inspections were paused at various periods and...– Read more
Canstar assesses over 4,000 home loans from more than 100 providers across Australia, to help you compare home loans and find an outstanding value loan to suit your needs.
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.
There are many different types of home loans on the market. How these loans are structured is typically based on:
A home loan is 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.
Canstar currently compares more than 4,000 home loans, to provide home buyers with certainty and confidence when they compare mortgages and interest rates.
Use our home loan comparison selector by inputting the 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 applicable interest rate. You can change the order of the listed results by adjusting the settings at the top of the list, and change what is in the list via the filter function.
Learn more about Canstar
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:
When you compare home loans with Canstar, you can easily view the advertised interest rate and comparison rate, as well as fees and features attached to each product. The product’s Star Rating is also displayed, to help you find a home loan that has been deemed to offer outstanding value by Canstar Research.
Home loan interest rates can vary significantly between home loan providers. Because home loans are a long-term debt, even small differences in interest rates can make a big difference to the total amount you will pay on your loan over its lifetime.
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.
A home loan comparison rate is designed to give borrowers a more accurate indication of the true cost of a loan and incorporates factors including the interest rate as well as most fees and charges.
You can use our website to compare the features of the home loans available for your situation.
Learn more about the features you may want to consider in our Canstar Home Loans Star Ratings report. A summary of the features that Canstar researches and rates in an outstanding value home loan are contained in the Methodology attached to the report.
Nina is the Editor-in-Chief of Canstar, Australia’s biggest financial comparison site. She is responsible for leading the editorial strategy, and works with a team of journalists and SEO specialists to drive traffic through delivering compelling and insightful content to consumers looking for support with their finances. You can follow her on Instagram or Twitter.
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 the part of any loan you may purchase.
Refer to the product disclosure statement (PDS) and Canstar’s Financial Services and Credit Guide (FSCG).
A comparison rate is an interest rate figure that represents the total annual cost of the loan, including the annual interest rate, monthly repayments, and most ongoing and upfront fees and charges. On the Canstar website, all comparison rates for home loans are based on a $150,000 loan over 25 years. Learn about comparison rates.
Home loan pre-approval is an initial approval process where the bank provides a borrower with an estimate of how much they could borrow, based on information they have provided to the bank. Find out how to get home loan pre-approval.
Lenders Mortgage Insurance is a type of insurance that the loaning institution takes out in case of default from the borrower, which the borrower must pay for. Usually applies to home loans with a higher LVR (more than 80%). Learn about LMI and how to avoid it.
A credit rating is an assessment of the credit-worthiness of individual borrowers, based on their borrowing and repayment history (credit report). Lenders consider your credit rating when deciding whether or not to give you a loan, how much to loan you, and what interest rate you will pay. Check your credit rating.
The Loan to Value Ratio (LVR) is the maximum proportion of the value of your home that can be loaned out to you. For example, a bank may approve your loan for 80% of the property value, in which you must pay the remaining 20% as your deposit. Find out how LVR affects your interest rate and LMI.
Equity is the residual claim to ownership that the purchaser holds. For example, when an owner has purchased a house with a loan for $100,000 and has made repayments of $40,000, the owner has equity on the house of $60,000.
The First Home Owner Grant (FHOG) is a government grant given to first home buyers. Learn what first home owner grants are available in your state or territory.
The First Home Loan Deposit Scheme (FHLDS) is a form of government assistance aimed at helping eligible home buyers get a leg up onto the property ladder for the first time.
The scheme allows some low- and middle-income earners 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).
Applications opened on 1 January, 2020 at Commonwealth Bank and National Australia Bank, while non-major lenders start accepting applications from 1 February.
A variable home loan interest rate fluctuates according to 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 allow for more flexibility and options. Learn about variable 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 1 year up to 5 years. The interest rate that the borrow pays will remain the same for that amount of time, regardless of changes in the RBA cash rate. Learn about fixed rate home loans.
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 also means they must be able to demonstrate their own capacity to repay your loan. Learn about guarantors on home loans.
Negative gearing is when the income from an investment property is not enough to pay the interest on the home loan for that property, negative gearing is currently available as a tax deduction against that income. Learn about negative gearing.
A mortgage offset account is a savings account linked to your loan to offset the interest charged on your loan. The money (or credit) in your account is offset daily against your loan balance, which reduces the daily mortgage interest charges. Learn about offset accounts.
A home loan redraw facility is a feature that enables the borrower to withdraw funds they have already paid, usually this is a condition based on if they are far enough ahead on loan payments. This is not available on all loans. Learn the pros and cons of redraw facilities.
Canstar’s Home Loan Calculators:
Below are some of our popular home loan providers or view more here:
Canstar’s^ highest rated Refinancing Home Loans with the Lowest Comparison Rates from referral partners
for an original home loan amount of $350,000 over a 30 year term
See some of the lowest comparison rate, 5-Star rated variable home loan products with principal and interest repayments on Canstar’s^ database. The table below displays a snapshot of some of the products from our referral partners sorted by Star Ratings, then comparison rate (lowest to highest), then by provider name (alphabetically).
Products displayed above that are not “Sponsored” are sorted as referenced in the introductory text and then alphabetically by company. Canstar may receive a fee for referral of leads from these products. See How We Get Paid for further information.
Canstar is an information provider and in giving you product information Canstar is not making any suggestion or recommendation about a particular product. If you decide to apply for a home loan, you will deal directly with a financial institution not with Canstar. Rates and product information should be confirmed with the relevant financial institution. Home Loans in the table include only products that are available for somebody borrowing 80% of the total loan amount. For product information, read our detailed disclosure, important notes and additional information. *Read the comparison rate warning. The results do not include all providers and may not compare all the features available to you.