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Real Time Rating™
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3.49%

Variable

3.45%

Athena Home Loans

$1.5k

Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied

3.53

/ 5
More details

3.59%

Variable

3.49%

Athena Home Loans

$898

Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied

3.10

/ 5
More details

3.49%

Variable

3.49%

UBank

$1.5k

Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied

3.65

/ 5
More details

3.49%

Fixed - 5 years

3.85%

UBank

$1.5k

Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied

3.17

/ 5
More details

4.19%

Fixed - 5 years

5.03%

Heritage Bank

$1.6k

Redraw facility
Offset Account
Borrow up to 90%
Extra Repayments
Interest Only
Owner Occupied

2.85

/ 5
More details

3.67%

Variable

3.72%

Heritage Bank

$1.5k

Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied

3.37

/ 5
More details

4.19%

Fixed - 5 years

4.35%

Heritage Bank

$1.6k

Redraw facility
Offset Account
Borrow up to 90%
Extra Repayments
Interest Only
Owner Occupied

2.82

/ 5
More details

3.77%

Variable

4.15%

Heritage Bank

$1.5k

Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied

3.41

/ 5
More details

3.69%

Variable

3.83%

Virgin Money

$1.5k

Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied

3.52

/ 5
More details

4.47%

Variable

4.66%

Pepper

$1.7k

Redraw facility
Offset Account
Borrow up to 65%
Extra Repayments
Interest Only
Owner Occupied

2.29

/ 5
More details

4.66%

Variable

4.85%

Pepper

$1.7k

Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied

2.00

/ 5
More details

3.99%

Fixed - 1 year

4.21%

Heritage Bank

$1.6k

Redraw facility
Offset Account
Borrow up to 90%
Extra Repayments
Interest Only
Owner Occupied

3.33

/ 5
More details

3.79%

Variable

3.79%

Hume Bank

$1.5k

Redraw facility
Offset Account
Borrow up to 85%
Extra Repayments
Interest Only
Owner Occupied

3.27

/ 5
More details

4.70%

Variable

4.72%

Heritage Bank

$1.2k

Redraw facility
Offset Account
Borrow up to 85%
Extra Repayments
Interest Only
Owner Occupied

1.82

/ 5
More details

3.99%

Fixed - 1 year

5.40%

Heritage Bank

$1.6k

Redraw facility
Offset Account
Borrow up to 90%
Extra Repayments
Interest Only
Owner Occupied

1.84

/ 5
More details

3.74%

Fixed - 2 years

3.84%

Virgin Money

$1.5k

Redraw facility
Offset Account
Borrow up to 90%
Extra Repayments
Interest Only
Owner Occupied

3.36

/ 5
More details

3.79%

Variable

3.79%

Hume Bank

$1.5k

Redraw facility
Offset Account
Borrow up to 85%
Extra Repayments
Interest Only
Owner Occupied

3.22

/ 5
More details

3.40%

Variable

3.42%

State Custodians

$1.5k

Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied

4.07

/ 5
More details

3.59%

Variable

3.64%

SCU

$1.5k

Redraw facility
Offset Account
Borrow up to 95%
Extra Repayments
Interest Only
Owner Occupied

3.94

/ 5
More details

3.70%

Variable

3.72%

State Custodians

$1.5k

Redraw facility
Offset Account
Borrow up to 90%
Extra Repayments
Interest Only
Owner Occupied

3.60

/ 5
More details

Learn more about home loans

Reasons to invest in property

Short term yields

Rent the property to tenants and enjoy an extra income stream

Long term capital growth

Renovate the property or wait for prices to rise in the area before you sell

Tax benefits

Use negative gearing to reduce your taxable income

Build equity

Use the value of one property to buy another, or to make other investments

Secure and transfer wealth

Put your money into bricks and mortar

Plan for retirement

Supplement your super with extra income

How to invest in property

  1. Identify goals
  2. Research properties
  3. Compare investment loans
  4. Calculate the costs and returns
  5. Consider the risks
  6. Make a decision

Property investment resources

Property investment glossary

Capital gain/loss

The money you make (or lose) when you sell a property for more (or less) than you paid for it. If you’re an investor, you may need to pay tax on your capital gains – contact the ATO to learn more.

Equity

The value of a property that you own outright, which can be used as security when borrowing money. Your equity equals the current value of your property, minus what’s currently owing on your mortgage.

Interest only

An option to pay only the interest charges on your home loan for a limited time. This can help lower the cost of your repayments for a limited time, but you won’t reduce the principal you owe. This means your mortgage may take longer to pay off and cost more in total interest.

Investment/Investor

If you buy a property to make money, either from rental income or capital growth, you’re an investor, and your property is an investment. Investor mortgages may have different interest rates, fees, and approval criteria than home loans for owner occupiers.

Negative gearing

When you pay more interest on an investment property than you make in income from the property. This may effectively lower your taxable income – contact the ATO to learn more. The opposite of positive gearing.

Offset account

A savings or transaction account linked to your home loan, which is included when calculating interest charges and may help you save money over time. For example, if you had a $300,000 home loan and a 100% offset account holding $20,000, you’d be charged interest as if you only owed $280,000 on your mortgage.

Positive gearing

When you make more money from rental income on an investment property than you pay in interest charges on the investment, your property is positively geared. The opposite of negative gearing.

Investment articles

Hints, tips and more for getting a loan to invest in property 

  • Refinancing your home loan to buy an investment property https://www.ratecity.com.au/home-loans/articles/refinancing-home-loan-buy-investment-property
  • How you can become a property investor in minutes https://www.ratecity.com.au/home-loans/articles/can-become-property-investor-minutes
  • How to minimise risk when buying an investment property https://www.ratecity.com.au/home-loans/articles/how-to-minimise-risk-when-buying-an-investment-property 
  • How to buy a home and become an investor (on a $40k salary) https://www.ratecity.com.au/home-loans/articles/how-to-buy-a-home-and-become-an-investor-on-a-40k-salary
  • Three unusual benefits to being a property investor https://www.ratecity.com.au/home-loans/articles/three-unusual-benefits-to-being-a-property-investor
  • Are holiday homes a good investment? https://www.ratecity.com.au/home-loans/articles/are-holiday-homes-a-good-investment
  • How to handle a bad tenant in your investment property https://www.ratecity.com.au/home-loans/articles/how-to-handle-a-bad-tenant-in-your-investment-property
  • How to choose where to invest in property https://www.ratecity.com.au/home-loans/articles/how-to-choose-where-to-invest-in-property
  • Are Australians missing investment opportunities? https://www.ratecity.com.au/home-loans/articles/are-australians-missing-investment-opportunities 
  • Three reasons to consider investing in property https://www.ratecity.com.au/home-loans/articles/three-reasons-to-consider-investing-in-property 
  • When property investment goes wrong https://www.ratecity.com.au/home-loans/articles/when-property-investment-goes-wrong 
  • Are you ready to buy an investment property? https://www.ratecity.com.au/home-loans/articles/are-you-ready-to-buy-an-investment-property
  • How to buy an investment property interstate https://www.ratecity.com.au/home-loans/articles/how-to-buy-an-investment-property-interstate
  • Property investment 101: how to get started https://www.ratecity.com.au/home-loans/articles/property-investment-101-how-to-get-started
  • Property investment myths https://www.ratecity.com.au/home-loans/articles/property-investment-myths
  • Property or shares: where should you invest? https://www.ratecity.com.au/home-loans/articles/property-or-shares-where-should-you-invest
  • Using equity to buy an investment property https://www.ratecity.com.au/home-loans/articles/using-equity-to-buy-an-investment-property
  • How to reduce risk when buying an investment property https://www.ratecity.com.au/home-loans/articles/how-to-reduce-risk-when-buying-an-investment-property
  • Top mistakes property investors make https://www.ratecity.com.au/home-loans/articles/top-mistakes-property-investors-make
  • Five common mistakes property investors make https://www.ratecity.com.au/home-loans/articles/five-common-mistakes-property-investors-make
  • Top 5 mistakes property investors make https://www.ratecity.com.au/home-loans/articles/top-5-mistakes-property-investors-make
  • Apartment v house: which is a better investment? https://www.ratecity.com.au/home-loans/articles/apartment-v-house-which-is-a-better-investment
  • Ten tips for investment property buyers https://www.ratecity.com.au/home-loans/articles/ten-tips-for-investment-property-buyers
  • Are you considering investing in property? https://www.ratecity.com.au/home-loans/articles/are-you-considering-investing-in-property
  • Should property investors keep away from mortgage season? https://www.ratecity.com.au/home-loans/articles/should-property-investors-keep-away-from-mortgage-season
  • The pros and cons of investment property https://www.ratecity.com.au/home-loans/articles/the-pros-and-cons-of-investment-property
  • Two reasons to fix your investment home loan rate https://www.ratecity.com.au/home-loans/articles/two-reasons-to-fix-your-investment-home-loan-rate

Frequently asked questions

How do you determine which home loan rates/products I’m shown?

When you check your home loan rate, you’ll supply some basic information about your current loan, including:

  • the amount owing on your mortgage
  • the value of your property
  • your current interest rate
  • name of existing lender
  • property address

We’ll compare this information to the home loan options in the RateCity database, and show you which home loan products you may be eligible to apply for.

What are the pros and cons of no-deposit home loans?

It’s no longer possible to get a no-deposit home loan in Australia. In some circumstances, you might be able to take out a mortgage with a 5 per cent deposit – but before you do so, it’s important to weigh up the pros and cons.

The big advantage of borrowing 95 per cent (also known as a 95 per cent home loan) is that you get to buy your property sooner. That may be particularly important if you plan to purchase in a rising market, where prices are increasing faster than you can accumulate savings.

But 95 per cent home loans also have disadvantages. First, the 95 per cent home loan market is relatively small, so you’ll have fewer options to choose from. Second, you’ll probably have to pay LMI (lender’s mortgage insurance). Third, you’ll probably be charged a higher interest rate. Fourth, the more you borrow, the more you’ll ultimately have to pay in interest. Fifth, if your property declines in value, your mortgage might end up being worth more than your home.

How common are low-deposit home loans?

Low-deposit home loans aren’t as common as they once were, because they’re regarded as relatively risky and the banking regulator (APRA) is trying to reduce risk from the mortgage market.

However, if you do your research, you’ll find there is still a fairly wide selection of banks, credit unions and non-bank lenders that offers low-deposit home loans.

What is bridging finance?

A loan of shorter duration taken to buy a new property before a borrower sells an existing property, usually taken to cover the financial gap that occurs while buying a new property without first selling an older one.

Usually, these loans have higher interest rates and a shorter repayment duration.

Are bad credit home loans dangerous?

Bad credit home loans can be dangerous if the borrower signs up for a loan they’ll struggle to repay. This might occur if the borrower takes out a mortgage at the limit of their financial capacity, especially if they have some combination of a low income, an insecure job and poor savings habits.

Bad credit home loans can also be dangerous if the borrower buys a home in a stagnant or falling market – because if the home has to be sold, they might be left with ‘negative equity’ (where the home is worth less than the mortgage).

That said, bad credit home loans can work out well if the borrower is able to repay the mortgage – for example, if they borrow conservatively, have a decent income, a secure job and good savings habits. Another good sign is if the borrower buys a property in a market that is likely to rise over the long term.

The fine print – what are the eligibility criteria?

This competition is only available to Australian residents who are over 18 and check their home loan interest rate at RateCity. However, you are not required to refinance your home loan or apply for any financial products.

You can still enter if you don’t have a home loan yet – enter how much you plan to borrow and the details of the property you’re considering, and we’ll compare mortgage offers that may suit your needs and estimate how much you could save compared to a loan with an average interest rate. 

Does Real Time Ratings' work for people who already have a home loan?

Yes. If you already have a mortgage you can use Real Time RatingsTM to compare your loan against the rest of the market. And if your rate changes, you can come back and check whether your loan is still competitive. If it isn’t, you’ll get the ammunition you need to negotiate a rate cut with your lender, or the resources to help you switch to a better lender.

How much debt is too much?

A home loan is considered to be too large when the monthly repayments exceed 30 per cent of your pre-tax income. Anything over this threshold is officially known as ‘mortgage stress’ – and for good reason – it can seriously affect your lifestyle and your actual stress levels.

The best way to avoid mortgage stress is by factoring in a sizeable buffer of at least 2 – 3 per cent. If this then tips you over into the mortgage stress category, then it’s likely you’re taking on too much debt.

If you’re wondering if this kind of buffer is really necessary, consider this: historically, the average interest rate is around 7 per cent, so the chances of your 30 year loan spending half of its time above this rate is entirely plausible – and that’s before you’ve even factored in any of life’s emergencies such as the loss of one income or the arrival of a new family member.

What is the difference between offset and redraw?

The difference between an offset and redraw account is that an offset account is intended to work as a transaction account that can be accessed whenever you need. A redraw facility on the other hand is more like an “emergency fund” of money that you can draw on if needed but isn’t used for everyday expenses.

Remuneration disclaimer

What is a building in course of erection loan?

Also known as a construction home loan, a building in course of erection (BICOE) loan loan allows you to draw down funds as a building project advances in order to pay the builders. This option is available on selected variable rate loans.

How much are repayments on a $250K mortgage?

The exact repayment amount for a $250,000 mortgage will be determined by several factors including your deposit size, interest rate and the type of loan. It is best to use a mortgage calculator to determine your actual repayment size.

For example, the monthly repayments on a $250,000 loan with a 5 per cent interest rate over 30 years will be $1342. For a loan of $300,000 on the same rate and loan term, the monthly repayments will be $1610 and for a $500,000 loan, the monthly repayments will be $2684.

Why is it important to get the most up-to-date information?

The mortgage market changes constantly. Every week, new products get launched and existing products get tweaked. Yet many ratings and awards systems rank products annually or biannually.

We update our product data as soon as possible when lenders make changes, so if a bank hikes its interest rates or changes its product, the system will quickly re-evaluate it.

Nobody wants to read a weather forecast that is six months old, and the same is true for home loan comparisons.

What does going guarantor' mean?

Going guarantor means a person offers up the equity in their home as security for your loan. This is a serious commitment which can have major repercussions if the person is not able to make their repayments and defaults on their loan. In this scenario, the bank will legally be able to the guarantor until the debt is settled.

Not everyone can be a guarantor. Lenders will generally only allow immediate family members to act as a guarantor but this can sometimes be stretched to include extended family depending on the circumstances.

What are exit and discharge fees?

The Federal Government banned exit fees in 2011, removing one of the biggest barriers to taking switching home loan providers. Lenders can still legally charge a discharge fee, which is payable when you come to the end of your home loan, however these fees are relatively small at an average of $304 while 134 products don’t have them at all.

How much deposit will I need to buy a house?

A deposit of 20 per cent or more is ideal as it’s typically the amount a lender sees as ‘safe’. Being a safe borrower is a good position to be in as you’ll have a range of lenders to pick from, with some likely to offer up a lower interest rate as a reward. Additionally, a deposit of over 20 per cent usually eliminates the need for lender’s mortgage insurance (LMI) which can add thousands to the cost of buying your home.

While you can get a loan with as little as 5 per cent deposit, it’s definitely not the most advisable way to enter the home loan market. Banks view people with low deposits as ‘high risk’ and often charge higher interest rates as a precaution. The smaller your deposit, the more you’ll also have to pay in LMI as it works on a sliding scale dependent on your deposit size.

What is the average annual percentage rate?

Also known as the comparison rate, or sometimes the ‘true rate’ of a loan, the average annual percentage rate (AAPR) is used to indicate the overall cost of a loan after considering all the fees, charges and other factors, such as introductory offers and honeymoon rates.

The AAPR is calculated based on a standardised loan amount and loan term, and doesn’t include any extra non-standard charges.

What is a cooling-off period?

Once a home loan’s contracts are exchanged between the borrower and the lender, a five-day cooling-off period follows, during which the contracts may be cancelled if needed.

How can I get a home loan with bad credit?

If you want to get a home loan with bad credit, you need to convince a lender that your problems are behind you and that you will, indeed, be able to repay a mortgage.

One step you might want to take is to visit a mortgage broker who specialises in bad credit home loans (also known as ‘non-conforming home loans’ or ‘sub-prime home loans’). An experienced broker will know which lenders to approach, and how to plead your case with each of them.

Two points to bear in mind are:

  • Many home loan lenders don’t provide bad credit mortgages
  • Each lender has its own policies, and therefore favours different things

If you’d prefer to directly approach the lender yourself, you’re more likely to find success with smaller non-bank lenders that specialise in bad credit home loans (as opposed to bigger banks that prefer ‘vanilla’ mortgages). That’s because these smaller lenders are more likely to treat you as a unique individual rather than judge you according to a one-size-fits-all policy.

Lenders try to minimise their risk, so if you want to get a home loan with bad credit, you need to do everything you can to convince lenders that you’re safer than your credit history might suggest. If possible, provide paperwork that shows:

  • You have a secure job
  • You have a steady income
  • You’ve been reducing your debts
  • You’ve been increasing your savings

Should I become a guarantor?

You should carefully weigh up the pros and cons before signing on as a guarantor – because while it can be very rewarding if everything goes according to plan, it can have serious consequences if the plan goes awry.

If the person you’re guaranteeing keeps up with their mortgage repayments, you’ll be able to take pleasure in helping them fulfil their dream of home ownership.

However if that person fails to meet their mortgage repayments, it might damage or destroy your relationship. Your finances might also be affected if the lender asks you to make the repayments or even seizes your home to settle the debt.