Advertiser disclosure
Compare the best home loan interest rates in Australia
Search and compare across one of Australia’s biggest database of over 100 mortgage providers to help find a home loan interest rate that is best for you. There is no single best home loan rate as everyone’s needs are different.
Find and compare best home loans
Advertised Rate 2.34% Variable | Comparison Rate* 2.34% | Company ![]() | Repayment $1,322 monthly | Features Redraw facility Offset Account Borrow up to 80% Extra Repayments Interest Only Owner Occupied | Go to site | With a discounted variable interest rate and no upfront or ongoing fees, you may be able to minimise the cost of your owner-occupied home loan. | Winner of Best variable, RateCity Gold Awards 2021 More details | Highlighted | ||
Product | Advertised Rate 2.09% Fixed - 3 years | Comparison Rate* 2.43% | Company ![]() | Repayment $1,285 monthly | Features Redraw facility Offset Account Borrow up to 70% Extra Repayments Interest Only Owner Occupied | Go to site | Owner occupiers with deposits of 30% or more can lock in a low fixed rate for three years, with no ongoing fees. | Winner of Best 3 year fixed pi, RateCity Gold Awards 2021 More details | ||
Advertised Rate 2.19% Variable | Comparison Rate* 2.19% | Company ![]() | Repayment $1,299 monthly | Features Redraw facility Offset Account Borrow up to 60% Extra Repayments Interest Only Owner Occupied | Go to site | The more of your home you pay off, the lower your rate could be. This low rate is avialbe for borrowers with equity of 40% or more. | Winner of Best refinance home loan, RateCity Gold Awards 2021 More details | |||
Advertised Rate 2.54% Variable | Comparison Rate* 2.55% | Company ![]() | Repayment $1,352 monthly | Features Redraw facility Offset Account Borrow up to 80% Extra Repayments Interest Only Owner Occupied | Go to site | Bundle your home loan and transaction account for discounts on rates, fees, and insurance offers. More details | ||||
Advertised Rate 2.48% Variable | Comparison Rate* 2.50% | Company ![]() | Repayment $1,343 monthly | Features Redraw facility Offset Account Borrow up to 80% Extra Repayments Interest Only Owner Occupied | Go to site | More details | ||||
Advertised Rate 2.59% Variable | Comparison Rate* 2.60% | Company ![]() | Repayment $1,359 monthly | Features Redraw facility Offset Account Borrow up to 80% Extra Repayments Interest Only Owner Occupied | Go to site | More details | ||||
Advertised Rate 2.04% Fixed - 3 years | Comparison Rate* 2.73% | Company ![]() | Repayment $1,277 monthly | Features Redraw facility Offset Account Borrow up to 80% Extra Repayments Interest Only Owner Occupied | Go to site | More details | ||||
Advertised Rate 2.09% Variable | Comparison Rate* 2.12% | Company ![]() | Repayment $1,285 monthly | Features Redraw facility Offset Account Borrow up to 70% Extra Repayments Interest Only Owner Occupied | Go to site | Winner of Best refinance home loan, RateCity Gold Awards 2021 More details | ||||
Advertised Rate 2.29% Fixed - 3 years | Comparison Rate* 3.13% | Company ![]() | Repayment $1,314 monthly | Features Redraw facility Offset Account Borrow up to 95% Extra Repayments Interest Only Owner Occupied | Go to site | More details | ||||
Advertised Rate 1.94% Variable | Comparison Rate* 1.98% | Company ![]() | Repayment $1,263 monthly | Features Redraw facility Offset Account Borrow up to 60% Extra Repayments Interest Only Owner Occupied | Go to site | Winner of Best refinance home loan, RateCity Gold Awards 2021 More details | ||||
Advertised Rate 2.19% Fixed - 5 years | Comparison Rate* 3.09% | Company ![]() | Repayment $1,299 monthly | Features Redraw facility Offset Account Borrow up to 90% Extra Repayments Interest Only Owner Occupied | Go to site | More details | ||||
Advertised Rate 2.59% Variable | Comparison Rate* 2.63% | Company ![]() | Repayment $1,359 monthly | Features Redraw facility Offset Account Borrow up to 80% Extra Repayments Interest Only Owner Occupied | Go to site | Winner of Best home loans over 1m, Best variable, RateCity Gold Awards 2021 More details | ||||
Product | Advertised Rate 2.55% Fixed - 1 year | Comparison Rate* 3.21% | Company ![]() | Repayment $638 monthly | Features Redraw facility Offset Account Borrow up to 79.9999% Extra Repayments Interest Only Owner Occupied | Go to site | More details | |||
Product | Advertised Rate 2.55% Variable | Comparison Rate* 2.60% | Company ![]() | Repayment $1,353 monthly | Features Redraw facility Offset Account Borrow up to 90% Extra Repayments Interest Only Owner Occupied | Go to site | More details | |||
Advertised Rate 2.29% Variable | Comparison Rate* 2.23% | Company ![]() | Repayment $1,314 monthly | Features Redraw facility Offset Account Borrow up to 80% Extra Repayments Interest Only Owner Occupied | Go to site | More details | ||||
Advertised Rate 2.59% Variable | Comparison Rate* 2.60% | Company ![]() | Repayment $1,359 monthly | Features Redraw facility Offset Account Borrow up to 80% Extra Repayments Interest Only Owner Occupied | Go to site | More details | ||||
Product | Advertised Rate 2.05% Fixed - 2 years | Comparison Rate* 2.65% | Company ![]() | Repayment $1,279 monthly | Features Redraw facility Offset Account Borrow up to 94.9999% Extra Repayments Interest Only Owner Occupied | Go to site | More details | |||
Advertised Rate 1.99% Fixed - 5 years | Comparison Rate* 3.34% | Company ![]() | Repayment $1,270 monthly | Features Redraw facility Offset Account Borrow up to 95% Extra Repayments Interest Only Owner Occupied | Go to site | More details | ||||
Advertised Rate 1.89% Fixed - 1 year | Comparison Rate* 3.51% | Company ![]() | Repayment $1,256 monthly | Features Redraw facility Offset Account Borrow up to 80% Extra Repayments Interest Only Owner Occupied | Go to site | More details | ||||
Advertised Rate 2.54% Variable | Comparison Rate* 2.54% | Company ![]() | Repayment $1,352 monthly | Features Redraw facility Offset Account Borrow up to 60% Extra Repayments Interest Only Owner Occupied | Go to site | More details |
$1,161
Learn more about home loans
Learn with our guides
Find home loans from a wide range of Australian lenders that best suit your needs.
Home loans repayments
Calculate how much your loan repayments could be.
Talk to an expert
For discounts and special rates, speak to a broker today.
Latest news
Latest articles
Best home loan interest rates
To find the one of the best available rates on your home loan, there are a number of factors you’ll need to consider. The rate you can get will depend on your personal financial circumstances, so even if you can’t find the perfect loan straight away, there may be changes you can make that will improve the deals you’re offered.
Comparing rates
Interest rates on loans are often presented in different ways, and can be difficult to understand. When you’re making your choice, you should look at the comparison rate, which also takes fees into account and is designed to give you a straightforward way of working out what is the best home loan interest rate.
Your credit history
One major factor that will influence the rates available to you is your credit history. The better your credit rating, the lower the rate you will be able to negotiate, while if you have bad credit you may sadly find that you are ineligible for many of the cheaper loans. You can improve your credit by always paying bills on time and making sure any money you borrow is paid back as agreed.
LVR
The other major factor that can help you access lower interest rates is the LVR – or Loan to Value Ratio – that you are seeking. If you have a big deposit to put on the property you want, the LVR will be lower than if you only have a small deposit. This will mean your lender is taking less of a risk, so may be able to offer a lower rate.
Fixed rate loans
Fixed interest rates are usually slightly higher to begin with but because they won’t change, you don’t have to worry about having to pay more if the RBA cash rate goes up. You’ll always know what your payments will be, which can really help if you’re on a budget.
Variable rate loans
Variable rate loans usually offer the cheapest rates to begin with and they can be even cheaper if the national interest rate falls. The flip side of this is that they can also become more expensive if it rises. They often come with special features than can help you save money overall.
Split rate loans
Split rate loans allow you to fix a portion of the loan, giving you stability, but also allow you to take advantage of some of the flexibility of a variable rate loan. They can help you to balance saving money with minimising risk.
Introductory rates
Many lenders try to attract borrowers by offering introductory rates so you will pay less for the first few months of your loan. In some circumstances you may be able to switch lender partway through the duration of your loan so that you can take advantage of this kind of deal more than once.
Haggle
A lot of people whose job it is to sell home loans are not working according to a strict set of rules but have some flexibility in the deals they make. If you can persuade them you’re a responsible person and that their risk will be low, they may be willing to offer you cheaper interest rates.
Alex Ritchie
Personal Finance Writer
Alex is a personal finance writer and PR professional at RateCity, and has been writing about finance for over three years. She is passionate about closing the gender pay and superannuation gap, and aims to help young Aussies to overcome their financial apathy and better manage their finances. Alex has been published in numerous print and online outlets, including Money Magazine, Lifehacker Australia, and Business Insider.
Today's top home loans
Frequently asked questions
Who has the best home loan?
Determining who has the ‘best’ home loan really does depend on your own personal circumstances and requirements. It may be tempting to judge a loan merely on the interest rate but there can be added value in the extras on offer, such as offset and redraw facilities, that aren’t available with all low rate loans.
To determine which loan is the best for you, think about whether you would prefer the consistency of a fixed loan or the flexibility and potential benefits of a variable loan. Then determine which features will be necessary throughout the life of your loan. Thirdly, consider how much you are willing to pay in fees for the loan you want. Once you find the perfect combination of these three elements you are on your way to determining the best loan for you.
What happens to my home loan when interest rates rise?
If you are on a variable rate home loan, every so often your rate will be subject to increases and decreases. Rate changes are determined by your lender, not the Reserve Bank of Australia, however often when the RBA changes the cash rate, a number of banks will follow suit, at least to some extent. You can use RateCity cash rate to check how the latest interest rate change affected your mortgage interest rate.
When your rate rises, you will be required to pay your bank more each month in mortgage repayments. Similarly, if your interest rate is cut, then your monthly repayments will decrease. Your lender will notify you of what your new repayments will be, although you can do the calculations yourself, and compare other home loan rates using our mortgage calculator.
There is no way of conclusively predicting when interest rates will go up or down on home loans so if you prefer a more stable approach consider opting for a fixed rate loan.
What is the difference between fixed, variable and split rates?
A fixed rate home loan is a loan where the interest rate is set for a certain amount of time, usually between one and 15 years. The advantage of a fixed rate is that you know exactly how much your repayments will be for the duration of the fixed term. There are some disadvantages to fixing that you need to be aware of. Some products won’t let you make extra repayments, or offer tools such as an offset account to help you reduce your interest, while others will charge a significant break fee if you decide to terminate the loan before the fixed period finishes.
A variable rate home loan is one where the interest rate can and will change over the course of your loan. The rate is determined by your lender, not the Reserve Bank of Australia, so while the cash rate might go down, your bank may decide not to follow suit, although they do broadly follow market conditions. One of the upsides of variable rates is that they are typically more flexible than their fixed rate counterparts which means that a lot of these products will let you make extra repayments and offer features such as offset accounts.
Split rates home loans
A split loan lets you fix a portion of your loan, and leave the remainder on a variable rate so you get a bet each way on fixed and variable rates. A split loan is a good option for someone who wants the peace of mind that regular repayments can provide but still wants to retain some of the additional features variable loans typically provide such as an offset account. Of course, with most things in life, split loans are still a trade-off. If the variable rate goes down, for example, the lower interest rates will only apply to the section that you didn’t fix.
What is the best interest rate for a mortgage?
The fastest way to find out what the lowest interest rates on the market are is to use a comparison website.
While a low interest rate is highly preferable, it is not the only factor that will determine whether a particular loan is right for you.
Loans with low interest rates can often include hidden catches, such as high fees or a period of low rates which jumps up after the introductory period has ended.
To work out the best value for money, have a look at a loan’s comparison rate and read the fine print to get across all the fees and charges that you could be theoretically charged over the life of the loan.
What is a variable home loan?
A variable rate home loan is one where the interest rate can and will change over the course of your loan. The rate is determined by your lender, not the Reserve Bank of Australia, so while the cash rate might go down, your bank may decide not to follow suit, although they do broadly follow market conditions. One of the upsides of variable rates is that they are typically more flexible than their fixed rate counterparts which means that a lot of these products will let you make extra repayments and offer features such as offset accounts.
What is a standard variable rate (SVR)?
The standard variable rate (SVR) is the interest rate a lender applies to their standard home loan. It is a variable interest rate which is normally used as a benchmark from which they price their other variable rate home loan products.
A standard variable rate home loan typically includes most, if not all the features the lender has on offer, such as an offset account, but it often comes with a higher interest rate attached than their most ‘basic’ product on offer (usually referred to as their basic variable rate mortgage).
What is a fixed home loan?
A fixed rate home loan is a loan where the interest rate is set for a certain amount of time, usually between one and 15 years. The advantage of a fixed rate is that you know exactly how much your repayments will be for the duration of the fixed term. There are some disadvantages to fixing that you need to be aware of. Some products won’t let you make extra repayments, or offer tools such as an offset account to help you reduce your interest, while others will charge a significant break fee if you decide to terminate the loan before the fixed period finishes.
How do I refinance my home loan?
Refinancing your home loan can involve a bit of paperwork but if you are moving on to a lower rate, it can save you thousands of dollars in the long-run. The first step is finding another loan on the market that you think will save you money over time or offer features that your current loan does not have. Once you have selected a couple of loans you are interested in, compare them with your current loan to see if you will save money in the long term on interest rates and fees. Remember to factor in any break fees and set up fees when assessing the cost of switching.
Once you have decided on a new loan it is simply a matter of contacting your existing and future lender to get the new loan set up. Beware that some lenders will revert your loan back to a 25 or 30 year term when you refinance which may mean initial lower repayments but may cost you more in the long run.
What is a split home loan?
A split loan lets you fix a portion of your loan, and leave the remainder on a variable rate so you get a bet each way on fixed and variable rates. A split loan is a good option for someone who wants the peace of mind that regular repayments can provide but still wants to retain some of the additional features variable loans typically provide such as an offset account. Of course, with most things in life, split loans are still a trade-off. If the variable rate goes down, for example, the lower interest rates will only apply to the section that you didn’t fix.
Interest Rate
Your current home loan interest rate. To accurately calculate how much you could save, an accurate interest figure is required. If you are not certain, check your bank statement or log into your mortgage account.
Savings over
Select a number of years to see how much money you can save with different home loans over time.
e.g. To see how much you could save in two years by switching mortgages, set the slider to 2.
Monthly Repayment
Your current monthly home loan repayment. To accurately calculate how much you could save, an accurate payment figure is required. If you are not certain, check your bank statement.
Mortgage Balance
The amount you currently owe your mortgage lender. If you are not sure, enter your best estimate.
Remaining loan term
The length of time it will take to pay off your current home loan, based on the currently-entered mortgage balance, monthly repayment and interest rate.
How can I get ANZ home loan pre-approval?
Shopping for a new home is an exciting experience and getting a pre-approval on the loan may give you the peace of mind that you are looking at properties within your budget.
At the time of applying for the ANZ Bank home loan pre-approval, you will be required to provide proof of employment and income, along with records of your savings and debts.
An ANZ home loan pre-approval time frame is usually up to three months. However, being pre-approved doesn’t necessarily mean you will get your home loan. Other factors could lead to your home loan application being rejected, even with a prior pre-approval. Some factors include the property evaluation not meeting the bank’s criteria or a change in your financial circumstances.
You can make an application for ANZ home loan pre-approval online or call on 1800100641 Mon-Fri 8.00 am to 8.00 pm (AEST).
How personalised is my rating?
Real Time Ratings produces instant scores for loan products and updates them based what you tell us about what you’re looking for in a loan. In that sense, we believe the ratings are as close as you get to personalised; the more you tell us, the more we customise to ratings to your needs. Some borrowers value flexibility, while others want the lowest cost loan. Your preferences will be reflected in the rating.
We also take a shorter term, more realistic view of how long borrowers hold onto their loan, which gives you a better idea about the true borrowing costs. We take your loan details and calculate how much each of the relevent loans would cost you on average each month over the next five years. We assess the overall flexibility of each loan and give you an easy indication of which ones are likely to adjust to your needs over time.
Do other comparison sites offer the same service?
Real Time RatingsTM is the only online system that ranks the home loan market based on your personal borrowing preferences. Until now, home loans have been rated based on outdated data. Our system is unique because it reacts to changes as soon as we update our database.
How does Real Time Ratings work?
Real Time RatingsTM looks at your individual home loan requirements and uses this information to rank every applicable home loan in our database out of five.
This score is based on two main factors – cost and flexibility.
Cost is calculated by looking at the interest rates and fees over the first five years of the loan.
Flexibility is based on whether a loan offers features such as an offset account, redraw facility and extra repayments.
Real Time RatingsTM also includes the following assumptions:
- Costs are calculated on the current variable rate however they could change in the future.
- Loans are assumed to be principal and interest
- Fixed-rate loans with terms greater than five years are still assessed on a five-year basis, so 10-year fixed loans are assessed as being only five years’ long.
- Break costs are not included.
What fees are there when buying a house?
Buying a home comes with ‘hidden fees’ that should be factored in when considering how much the total cost of your new home will be. These can include stamp duty, title registration costs, building inspection fees, loan establishment fee, lenders mortgage insurance (LMI), legal fees and bank valuation costs.
Tip: you can calculate your stamp duty costs as well as LMI in Rate City mortgage repayments calculator
Some of these fees can be taken out of the mix, such as LMI, if you have a big enough deposit or by asking your lender to waive establishment fees for your loan. Even so, fees can run into the thousands of dollars on top of the purchase price.
Keep this in mind when deciding if you are ready to make the move in to the property market.
What is the flexibility score?
Today’s home loans often try to lure borrowers with a range of flexible features, including offset accounts, redraw facilities, repayment frequency options, repayment holidays, split loan options and portability. Real Time Ratings™ weights each of these features based on popularity and gives loans a ‘flexibility score’ based on how much they cater to borrowers’ needs over time. The aim is to give a higher score to loans which give borrowers more features and options.