How to research and compare to find the best home loan

Taking out a home loan is likely one of the biggest financial commitments you’ll make in life, in most cases lasting upwards of 20 years. So, it makes sense to ensure you find the best home loan for you.

While there’s no such thing as a single best home loan on the market, it is possible to find the best home loan options for your individual needs. There are a few steps you can take that will help you figure out what you’re looking for and allow you to make an educated decision on what may work best for you.

Do your research

Before you get started on comparing your options, it’s important to have a good understanding of what options may be best suited to your needs. To do this, it’s worth researching the mortgage market in Australia, including catching up on the latest mortgage news, finding answers to home loan related questions you may have, and exploring the different types of home loans on the market.

It's also worth researching the different home loan features offered on certain products – such as extra repayments, redraw facilities and offset accounts – to decide whether they may be beneficial to you.

Make your calculations

Finding out what you may be eligible for is one of the first steps you may want to take in your homebuying journey. Calculating how much you may be eligible to borrow, how much your mortgage repayments could cost and what you could pay in extra fees can allow you to budget accordingly and search for home loans that meet your financial needs.

RateCity has a selection of home loan calculators that may make it easier for you to do the maths. Here’s what they can help you do:

• Home loan repayment calculator: Estimate the cost of your home loan repayments to work out how much you may pay on your mortgage.
• Borrowing power calculator: See how much you may be able to afford to borrow to buy a property.
• Stamp duty calculator: Calculate what you may pay in stamp duty based on your location and other factors.
• Refinance calculator: See how refinancing your mortgage could help you save money on interest charges, pay off your mortgage sooner, or access equity.
• Lender’s Mortgage Insurance calculator: Calculate how much you may pay for Lender’s Mortgage Insurance (LMI) if you have a deposit of less than 20 per cent.

Compare your options

Once you know what you’re looking for, it’s time to start comparing what may be available to you. RateCity has a number of tools that can make the comparison process easier for you:

• Comparison tables: RateCity’s home loan comparison tables allow you to compare a wide variety of home loans all at once. Simply use the filters to sort by interest rate or comparison rate and narrow down the results by selecting your preferred home loan features such as lender type, loan term, borrow amount and more.
• Real Time Ratings™: Our world-first rating system, Real Time Ratings™, ranks home loans based on your individual mortgage requirements. It gives each home loan a score out of five stars, based on loan costs and flexibility, while also factoring in your preferred loan size, deposit amount and borrowing type, so you don’t waste time looking at loans that aren’t applicable to you.
• Home loan leaderboards: Visit RateCity’s home loan leaderboards to see how we’ve ranked current Australian mortgages using Real Time Ratings™. Check out the top-rated home loans in a wide range of categories, such as variable home loans, refinance home loans, and interest only investor home loans. 

Reach out to a broker

If you’ve done your due diligence but still would like some expert guidance, consider reaching out to a local mortgage broker. Mortgage brokers are qualified industry experts who help homebuyers find and apply for suitable home loans.

They can use their specialised knowledge to assess your application and make recommendations for improvements, as well as find home loan options that best suit your financial situation and personal requirements.

Visit RateCity’s broker hub to find out more and connect with a mortgage broker today.

Compare home loans in Australia