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Home loan comparison
Whether buying, refinancing, or investing, search and compare home loans quickly and easily on RateCity. Rates starting at 4.99% (comparison rate* 6.15%)
110+ home loan providers in RateCity’s database
7000+ home loan products in RateCity’s database
Updated on
Loan amount
Minimum deposit
Loan type & Term
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5.99%
5.90%
$2,995
Australian Credit Licence 234945
Fees & charges apply
- 2024 Award Winner
- Special
- Owner Occupied
- Variable
- 20% min deposit
- P&I
6.39%
6.40%
$3,124
Australian Credit Licence 233714
Fees & charges apply
- Cashback
- Owner Occupied
- Variable
- 20% min deposit
- P&I
6.29%
6.20%
$3,092
Australian Credit Licence 234945
Fees & charges apply
- Special
- Investor
- Variable
- 20% min deposit
- P&I
6.84%
7.16%
$3,407
Australian Credit Licence 233714
Fees & charges apply
- Owner Occupied
- Variable
- 5% min deposit
- P&I
7.09%
7.09%
$3,357
Australian Credit Licence 234527
Fees & charges apply
- Cashback
- Owner Occupied
- Variable
- 10% min deposit
- P&I
6.95%
7.15%
$2,896
Australian Credit Licence 234945
Fees & charges apply
- Investor
- Variable
- 20% min deposit
- Interest Only
7.20%
6.90%
$3,000
Australian Credit Licence 234945
Fees & charges apply
- Investor
- Variable
- 40% min deposit
- Interest Only
6.49%
7.25%
$2,704
Australian Credit Licence 234527
Fees & charges apply
- Cashback
- Owner Occupied
- Fixed 2 years
- 10% min deposit
- Interest Only
7.24%
7.56%
$3,183
Australian Credit Licence 233714
Fees & charges apply
- Investor
- Variable
- 30% min deposit
- Interest Only
Why search and compare at RateCity?
- No cost to you
Using our comparison tool to help find a home loan is free. However, we might receive a commission from partners if you apply through our site.
- Expert research
Our team of home loan research experts evaluates home loans for value (including price and features), offering detailed ratings to aid your comparison.
- Dedicated experts
Our seasoned editorial team has extensive experience in financial comparisons, aiming to simplify complex terms into useful information for Australians.
- A variety of providers
We review and rate home loans from over a hundred providers, offering a wide selection of home loans for informed decision making.
Home loan expert tips
 | If you've had your home loan for more than a year, chances are you're on a higher rate than someone who has refinanced. |
| There are a few simple ways you can save thousands of dollars on your mortgage, and it might be easier than you think. | |
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| Plenty of people think refinancing is not worth the effort, until they actually take the plunge and then kick themselves for not having done it earlier. | |
| Laine Gordon - Money Editor at RateCity |
Home loan calculators
Use our tools and calculators to crunch the numbers on your home loan. Find out how much money you might be able to borrow, your potential repayments, and much more.
Borrowing Capacity Calculator
Discover how much you could afford to borrow for your dream home.
Home Loan Repayment Calculator
A tool to calculate your monthly repayments and help you better manage your budget.
Stamp Duty Calculator
Enter your property’s purchase price and location to receive an instant stamp duty estimate.
Refinance Calculator
Compare your current mortgage with potential new options, identifying possible savings.
LMI Calculator
Enter your property value and loan amount to calculate how much LMI you may need to pay.
What's new in home loans in December 2024?
Home loan interest rates may stay higher for longer, with Australia’s big banks pushing back their forecasts of when the Reserve Bank of Australia (RBA) is likely to cut the national cash rate. Previously, most of the big banks were picking a February 2025 cut, but now three of Australia’s big four banks are calling a May 2025 cut instead.
Inflation has fallen significantly from the high of 7.8% in December 2022, with headline inflation falling back into the RBA’s target band in September 2024. However, trimmed mean inflation was up in the November 2024 monthly CPI data from the Australian Bureau of Statistics ABS). If this is an indicator that inflation could be sticking around for longer than expected, the RBA could choose to keep the cash rate on hold for longer.
If you’re keen to prepare for the new year by giving yourself a rate cut rather than waiting on the banks, you can consider comparing some alternative home loan options today. If you call up to negotiate with your bank and they aren’t willing to give you a discount, you could consider switching to another lender that could help you save more money on your mortgage. Just keep in mind that there’s more to finding the best home loan than just looking at the interest rate – compare the fees, features and benefits too.
Low home loan rates for December
Some of the lowest comparison rates* on RateCity at the time of writing include:
*This is the comparison rate published by the lender and is on a per annum basis. The comparison rate is calculated for a secured loan for an amount of $150,000 over a 25 year term. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
- Credit Union SA Ltd Fixed Home Loan Package (Principal and Interest) 3 Years (LVR < 97%) at 5.69% (comparison rate 5.59%)
- G&C Mutual Bank Limited Fixed Rate Home Loan 3 Years at 5.70% (comparison rate 5.76%)
- Easy Street Financial Services Fixed Home Loan (Principal and Interest) 3 Years at 5.64% (comparison rate 5.79%)
- G&C Mutual Bank Limited Fixed Rate Home Loan 2 Years at 5.75% (comparison rate 5.81%)
- Bank of Heritage Isle First Home Loan Fixed (Principal and Interest) 3 Years (LVR 80%-95%) at 5.59% (comparison rate 5.85%)
What is a home loan?
A home loan is a significant sum of money that you borrow from a bank or other lender to purchase property. When you take out a home loan, you use your home as security, giving the lender the right to take the property back if you fail to repay the loan. In legal terms, this is known as "mortgaging" your home, which is why a home loan is sometimes called a mortgage.
Repaying a home loan involves making regular instalments over the life of the loan, which include both the borrowed amount and an extra charge known as "interest."
The interest you're charged on each mortgage repayment is based on your remaining loan amount, also known as your loan principal. The rate at which interest is charged on your home loan principal is expressed as a percentage. Your home loan’s interest rate is effectively the cost of “buying” the money you use to purchase property.
As home loans are secured by the value of the property, most lenders consider them less risky than most personal loans or business loans, so their interest rates are usually much lower. You can use a mortgage repayment calculator to determine how much your monthly repayments are likely to be for various loan sizes at different rates of interest.
In addition to the interest rate, lenders commonly impose various fees, such as home loan application fees, annual fees, late payment fees, extra repayment fees, etc. These fees can significantly contribute to the overall cost of your loan.
If you choose a loan with additional features, like a redraw facility or an offset account, you may need to pay an additional fee or a higher interest rate. However, these features could be highly beneficial for some borrowers in effectively managing their home loan.
It's crucial to weigh the costs and benefits before committing to a specific loan. While a higher fee or interest rate may seem daunting, the added features could potentially save you money in the long run or offer valuable flexibility. Carefully assess your financial situation and goals to make an informed decision that aligns with your needs.
What are the different types of home loans in Australia
There is no one-size-fits-all best home loan type. Selecting the right home loan involves considering the diverse range of options available, as there is no universally perfect choice. There are different types of home loans on the market tailored to the varying needs of borrowers. These include construction loans, bridging loans, low doc loans designed for the self-employed, reverse mortgages, and more.
By understanding your requirements from a home loan, you can choose the ideal mortgage type for your unique situation and needs. For instance, if you plan to construct or substantially renovate a house, a construction loan may be better suited for your situation.
Spend some time to understand and compare the various home loan options on the market to choose a mortgage that best suits your needs. Consider speaking to a mortgage broker to learn more about your options.
What type of interest rate works best for you?
When you compare home loans, one your first choices will be deciding between a fixed or variable interest rate. But what does that mean?
Are you buying your first home or an investment property?
You can purchase a property to make it your home or use it as a rental to supplement your income. Depending on how you intend to use the property, you can choose between an owner-occupied or investor loan, both of which come with different sets of features and rates.
Planning to construct or substantially renovate a house?
Building your dream home or undertaking significant renovations requires not just vision, but also specialised financing that caters to the unique needs of construction projects.
Looking for a better rate or features on an existing mortgage?
If your current mortgage no longer fits your financial situation or the market has evolved, refinancing can offer a pathway to better interest rates, lower monthly payments, or improved loan features.
Other home loan types
The mortgage market serves a broad array of borrowers, including self-employed individuals and those seeking unique financing options like bridging or SMSF loans. Familiarising yourself with the variety of home loan types can help you find the most suitable option for your specific needs.
- Self-employed home loans
- Bridging home loans
- SMSF home loans
- Low deposit home loans
- Guarantor home loans
What is a good interest rate on a home loan?
While it's difficult to define a ‘good’ interest rate universally for every borrower, a good interest rate generally means a lower rate that could reduce the amount you pay on your mortgage repayments. However, a lower interest rate may not necessarily translate into a ‘good’ home loan, since you also need to consider the loan's fees and charges. When comparing home loans, it’s crucial to evaluate the fees and features of each loan to identify the most appropriate mortgage for your needs.
How to compare home loans
You can use RateCity’s rate tables to compare apples with apples. Using filters, you can enter details of how much you’d like to borrow, your preferred loan term and any other features and benefits you’re interested in. This can help narrow your home loan shortlist down to only those best-suited to your needs.
You can also look at the Real Time Ratings™ on RateCity to get a better idea of each loan’s overall value. These star ratings are calculated as you use the site to help ensure they’re up to date, and combine the cost and flexibility of each mortgage deal.
Choosing a home loan isn't just about picking the lowest interest rate. Remember, the cheapest rate doesn't always mean you're getting the best deal for your situation. There’s no single best home loan that will work for every borrower, but reviewing and comparing multiple home loan options can increase your chances of finding a loan that’s the best fit for your situation and budget.
Here are some things to consider when comparing home loans:
Interest Rates
Comparing interest rates on home loans is often the starting point for many home borrowers. Interest rates directly affect your monthly repayments and the total cost of the loan over time.
- Fixed vs. Variable: Decide whether you want the predictability of fixed interest rates or the potential savings of variable rates.
- Comparison Rate: Look beyond the headline rate to the comparison rate, which includes the interest rate plus most fees and charges, giving a truer cost of the loan. But remember, this rate is based on a set loan amount and term, so it might not fit your exact situation perfectly. To really understand what you'll pay, calculate your monthly loan repayments and add any fees to see the full picture.
Fees
Buying a property often means paying for more than just the house itself. While your deposit plus your loan amount should cover the property’s purchase price, you’ll also need to have enough money saved to cover other upfront costs, such as:
These costs can vary, and you can use online calculators to estimate how much extra you may need to budget for.
Loan Features
Some of the common and useful home loan features to look out for during a home loan comparison include:
Extra repayments
Additional repayments can help to lower your outstanding mortgage principal, potentially lowering your interest charges and helping you pay off your property sooner.
Redraw facility
Access the extra repayments you’ve previously made onto your home loan, putting the cash back in your bank account when you need it. A redraw facility can be useful if you are paying for renovations, paying for a family holiday or just have an emergency payment you need to make.
Home loan portability
Portability is a home loan feature that allows you to transfer your existing home loan to a new property without the need to refinance. So, if you plan to change homes, you can keep your current loan without going through all the paperwork and processes of getting a new one.
Mortgage holiday
Some lenders allow you to pause repayments on your home loan for a limited time period in the event of financial hardship. This is also known as a mortgage repayment holiday or a mortgage freeze.
Offset account
A 100% offset account is a linked transaction account to your mortgage, in which funds deposited in the account are included when calculating your home loan’s interest charges. The funds help to ‘offset’ or reduce the amount of interest you pay.
Repayment type
Some lenders let you choose between principal and interest repayments or interest-only repayments. The latter could lead to more affordable mortgage repayments in the short term (such as a period of 1-5 years), but it also means that you won’t reduce your principal. When the interest-only period ends, your repayments may thus be significantly higher, as the total time to repay the loan remains fixed. This option is often popular among investors looking to maximise returns on their investment property.
Loan term
The length of the loan term will affect your repayments and the total interest paid. Shorter loan terms may lead to higher monthly repayments but less interest in the long run.
Type of Lender
When you're in the market for a home loan, comparing interest rates is a crucial step, but it's equally important to consider the type of lender you choose to borrow from. Consider whether you want to borrow from a bank, credit union, or an online lender. Each has its pros and cons regarding interest rates, loan products, customer service, and flexibility.
How do the big four banks compare?
One starting point for many home buyers will be Australia's biggest banks, also known as "the big four". Responsible for the largest amount of mortgages in Australia, the big four banks include ANZ, Commonwealth Bank, NAB, and Westpac, and are a clear starting point for many home buyers whether they're buying for the first time, second, refinancing, or investing.
Lowest ANZ home loan rate
Interest Rate
5.74%
p.a.
Comparison Rate*
6.94%
p.a.
Principal and Interest
Lowest NAB home loan rate
Interest Rate
5.89%
p.a.
Comparison Rate*
6.62%
p.a.
Principal and Interest
Lowest CBA home loan rate
Interest Rate
5.89%
p.a.
Comparison Rate*
7.8%
p.a.
Principal and Interest
Lowest Westpac home loan rate
Interest Rate
5.89%
p.a.
Comparison Rate*
7.45%
p.a.
Principal and Interest
Does the government help home buyers?
Both the state and federal governments offer a variety of grants and incentives to help home buyers, especially first home buyers. Most state and territory governments offer a First Home Owners Grant (FHOG) or similar incentives (such as discounted or waived stamp duty) to assist borrowers buying their first property.
The federal government’s Home Guarantee Scheme (HGS), previously known as the First Home Loan Deposit Scheme (FHLDS) is a program that allows borrowers to apply for a mortgage with a deposit of just 5% and pay no LMI, as the government will step in to guarantee the remainder of the deposit.
Keep in mind that there are a limited number of places available in this program each financial year, and only a limited number of lenders are participating in the program. Also, both the borrower(s) and the property being bought will need to satisfy a number of terms and conditions to be eligible.
Another government program that may be useful to home buyers is the First Home Super Saver (FHSS) scheme. This allows borrowers to make extra contributions into their superannuation fund, where you can’t easily access your cash for everyday spending. These contributions can later be withdrawn from your super fund to help cover the cost of your deposit – up to $15,000 of voluntary contributions per financial year, up to a total of $30,000 in contributions across all years.
Why is home loan comparison important?
Your home loan is one of the largest and most significant financial commitments of your life. Just as you wouldn't buy the first car you saw at a dealership, you should never apply for the first home loan you see.
It’s important to choose the home loan that best suits your lifestyle, financial needs and personal goals. Finding the best home loan involves more than just hunting for the lowest interest rates. Comparing interest rates and looking at the fees, features and benefits of home loans from a variety of different banks and other mortgage lenders can help you work out which mortgage offers are the best for you, and not just the cheapest.
Even after successfully taking out a home loan, it’s often a good idea to conduct home loan comparisons at regular intervals, to make sure that your mortgage still suits your needs. If you find a new home loan with a lower interest rate or features and benefits that better suit your changing circumstances, you may have the option to refinance.
How to find the cheapest home loan rate
If you’re comparing home loan options, you may be looking for the cheapest home loan rate to get the best possible deal on your mortgage. However, comparing home loan interest rates is just one step towards finding the most suitable home loan option for your requirements. You also need to consider the fees and features associated with a loan to understand its overall cost to you. That being said, understanding the various factors that may affect your home loan interest rate could help you qualify for a lower interest rate on your mortgage. Some of these factors include:
Your credit rating
Lenders view your credit score as a measure of your reliability as a borrower. A higher credit score indicates to lenders that you're a low risk borrower, which may lead to lower interest rates.
The size of your deposit
The larger your home loan deposit, the less risk you pose to the lender. A substantial deposit covering at least 20% of the property’s price can result in a lower Loan to Value Ratio (LVR), which may help you qualify for lower interest rates.
Your profession
Some lenders may advertise special offers or lower rates for professionals in certain fields, such as doctors, lawyers, and accountants, due to the perceived stability and earning potential of these careers. If you work in one of these professions, you might qualify for a lower interest rate on your home loan or be eligible to borrow with a low deposit without having to pay for Lenders Mortgage Insurance.
The term of your loan
When conducting a home loan comparison, it's essential to consider the term of your loan and whether you opt for a fixed or variable rate, as these choices can significantly influence your interest rate.
Your debt-to-income ratio (DTI)
Your debt-to-income ratio refers to the amount of debt you have compared to your income. This number can affect your home loan interest rate and whether you qualify for one. A lower ratio suggests to lenders that you're more capable of managing your loan repayments.
Fact Checked
The information on this page was fact checked by Matthew Tinson, a broker in Queensland specialising in home loans, car financing, personal loans, debt consolidation, and asset financing. For more information on how brokers like this can assist you, look for a broker near you.
Guides and resources
First-time home buyers
Government assistance for home buyers
Home loan refinancing
Investment home loans
Frequently Asked Questions
Compare home loan options
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^Words such as "top", "best", "cheapest" or "lowest" are not a recommendation or rating of products. This page compares a range of products from selected providers and not all products or providers are included in the comparison. There is no such thing as a 'one- size-fits-all' financial product. The best loan, credit card, superannuation account or bank account for you might not be the best choice for someone else. Before selecting any financial product you should read the fine print carefully, including the product disclosure statement, target market determination fact sheet or terms and conditions document and obtain professional financial advice on whether a product is right for you and your finances.