How to search for a low-rate home loan online

There are many ways you can shop for competitive home loan offers online, but the challenge can be knowing where to start.

Whether you’re interested in applying for a fixed rate or variable rate home loan, it pays to shop around. Ensuring you consider products outside of what the big four banks are offering can be beneficial, because smaller lenders often have competitive rates available. It will ultimately come down to what you’re looking for in a home loan. 

What to consider when searching for a low-rate home loan

A low interest rate shouldn’t be the only factor considered when shopping for the right home loan for your circumstances. Other factors to take into account include fees, charges and extra features. 

Looking at a home loan’s comparison rate, as opposed to the advertised rate, should give you a better idea of a home loan’s overall cost. That’s because the comparison rate takes into account most major fees, unlike the advertised rate.

It’s also important to consider a product’s features when comparing your options. For example, some home loans allow for a split loan option, additional repayments and/or have an offset account. For many borrowers, these features could be beneficial. But it’s worth noting that you’ll generally pay more for a home loan that has all the bells and whistles compared to one without.

Choosing a home loan is a big financial decision that can often last over 25 years, so it’s important to make a comprehensive comparison and weigh up all your options. 

Tools that can help you compare low-rate home loans online

Making the most of online tools can take the hassle out of your home loan search. RateCity offers a selection of tools to get you started.

Home loan calculators

A handy place to start when beginning your home loan search is by using different home loan calculators to understand your budget. Here are some of the calculators available at RateCity, and how they might help you:

• Borrowing power calculator – Allows you to calculate how much you may be eligible to borrow to buy a property.
• Home loan repayment calculator – Gives you an estimate of what your home loan repayments could cost.
• Stamp duty calculator – Provides an estimate of what you might pay in stamp duty and other government fees.
• Refinance calculator – Allows you to see how much you could potentially save by switching from an existing home loan to a new one.
• Lender’s Mortgage Insurance (LMI) calculator – Provides an estimate of how much you may need to pay for LMI if you are planning to purchase a property with a deposit of less than 20 per cent. 

Home loan comparison tables

To compare a wide range of home loan products side by side, consider using a home loan comparison table. Simply select the filters that match what you are looking for to narrow down the results to only the products that best suit your needs.

Some of the selections you can choose between include:

• Fixed or variable interest rate
• Principal & interest or interest only repayments
• Investor or owner occupier
• No offset, partial offset or 100% offset account

Once you’ve applied the appropriate filters and narrowed down your short list, you can easily compare interest rates, comparison rates and more.

Home loan leaderboards

RateCity’s home loan leaderboards use Real Time Ratings™ to rank home loans based on costs, features and flexibility. The leaderboards are separated into a range of different categories, with the top five home loans ranked under each one.

Credit score check

Your credit score will have a significant impact on the interest rate a lender may be willing to offer you. So, while you’re shopping for a home loan, it might be worth visiting RateCity’s credit score hub for a free credit score check to ensure yours is in good shape.

And if you find it has room for improvement, consider putting the effort in to increase it before applying for a home loan.

Compare home loans in Australia