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Australian Credit Licence 232595Fees & charges apply

5.99%

5.99%

$2,995

    2024 Award Winner

  • Owner Occupied
  • Variable
  • 40% min deposit
  • P&I
More detailsmore-details

Australian Credit Licence 232595Fees & charges apply

Australian Credit Licence 395219Fees & charges apply

5.99%

6.51%

$2,995

  • Owner Occupied
  • Variable
  • 10% min deposit
  • P&I
More detailsmore-details

Australian Credit Licence 395219Fees & charges apply

Australian Credit Licence 232595Fees & charges apply

6.04%

6.04%

$3,011

  • Owner Occupied
  • Variable
  • 30% min deposit
  • P&I
More detailsmore-details

Australian Credit Licence 232595Fees & charges apply

Australian Credit Licence 237879Fees & charges apply

5.97%

6.12%

$2,988

  • Special
  • Owner Occupied
  • Variable
  • 10% min deposit
  • P&I
More detailsmore-details

Australian Credit Licence 237879Fees & charges apply

Australian Credit Licence 496431Fees & charges apply

5.94%

5.95%

$2,978

  • Special
  • Owner Occupied
  • Variable
  • 10% min deposit
  • P&I
More detailsmore-details

Australian Credit Licence 496431Fees & charges apply

Australian Credit Licence 237879Fees & charges apply

5.85%

6.09%

$2,950

  • Special
  • Owner Occupied
  • Fixed undefined year
  • 10% min deposit
  • P&I
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Australian Credit Licence 237879Fees & charges apply

Australian Credit Licence 395219Fees & charges apply

6.04%

6.06%

$3,011

  • Owner Occupied
  • Variable
  • 10% min deposit
  • P&I
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Australian Credit Licence 395219Fees & charges apply

Australian Credit Licence 234945Fees & charges apply

5.99%

5.90%

$2,995

    2024 Award Winner

  • Special
  • Owner Occupied
  • Variable
  • 20% min deposit
  • P&I
More detailsmore-details

Australian Credit Licence 234945Fees & charges apply

Australian Credit Licence 237502Fees & charges apply

5.99%

6.13%

$2,995

  • Owner Occupied
  • Fixed undefined year
  • 30% min deposit
  • P&I
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Australian Credit Licence 237502Fees & charges apply

Australian Credit Licence 237502Fees & charges apply

6.15%

6.17%

$3,046

  • Owner Occupied
  • Variable
  • 40% min deposit
  • P&I
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Australian Credit Licence 237502Fees & charges apply

Australian Credit Licence 237879Fees & charges apply

6.15%

6.15%

$3,046

  • Special
  • Owner Occupied
  • Variable
  • 10% min deposit
  • P&I
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Australian Credit Licence 237879Fees & charges apply

Australian Credit Licence 233714Fees & charges apply

6.29%

6.30%

$3,092

  • Cashback
  • Owner Occupied
  • Variable
  • 20% min deposit
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Australian Credit Licence 233714Fees & charges apply

Find a local mortgage broker

Get expert home loan advice and assistance with your mortgage application.

Calculate your potential home loan savings

Calculate what your repayments could be on your home loan.

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What's new in home loans in March 2024?

Steady monthly inflation figures indicate that the RBA may keep the cash rate on hold at its next meeting, scheduled for 18-19 March on the new 2024 timeline. This could in turn signal cautious optimism as opposed to immediate fear of an economic downturn. 

If the RBA keeps rates untouched, borrowers hoping for a rate cut may need to do the work themselves. This could be as simple as calling your bank to ask for a discount, or comparing options to switch and save. 

Keep in mind that the rate you’re offered will depend on a wide range of factors, with the size of your deposit or home equity being a significant one. 

Low home loan rates for March

Some of the lowest 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. 

Updated by Mark Bristow on 1 March 2024. 

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, 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 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 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 take out a home loan, 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. 

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 multiple home loan options and comparing them 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 

Choosing the right interest rate type for your home loan is a crucial decision that can affect your financial flexibility and overall loan costs. 

  • 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 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.

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

6.54%

p.a

Comparison Rate*

7.1%

p.a

Principal and Interest

Lowest NAB home loan rate
Interest Rate

6.59%

p.a

Comparison Rate*

7.45%

p.a

Principal and Interest

Lowest CBA home loan rate
Interest Rate

6.49%

p.a

Comparison Rate*

6.87%

p.a

Principal and Interest

Lowest Westpac home loan rate
Interest Rate

6.49%

p.a

Comparison Rate*

7.57%

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 loans and looking at the rates, 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 another home loan with a lower interest rate or features and benefits that better suit your changing circumstances, you may have the option to refinance. 

Sally_author

“Keeping on top of your home loan is important, but it doesn’t have to be time consuming. Take five minutes every few months to check your rate is competitive and that you’ve got all the features you need to minimise the amount of interest you hand over to your bank, so you can knock down your debt as soon as possible.”

Sally Tindall

RateCity Research Director

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 

How to buy your first home

Read more

How to get a home loan pre-approval

Read more

Loan to value ratio: Explained

Read more

Lenders Mortgage Insurance (LMI)

Read more

Government assistance for home buyers 

What does the government offer for home buyers? 

Read more

Using Super for a house deposit 

Read more

First Home Owner Grant (FHOG) 

Read more

Home Guarantee Scheme (HGS) eligibility 

Read more

Home loan refinancing

Things to consider before you refinance 

Read more

Should you switch your home loan? 

Read more

How to refinance your home loan 

Read more

Benefits and risks of refinancing 

Read more

Investment home loans 

Getting started with property investment 

Read more

Guide to investing in multiple properties 

Read more

What is rentvesting? 

Read more

Owner-occupied vs investment home loan 

Read more

Frequently Asked Questions

What is Lender’s Mortgage Insurance (LMI)

Lender’s Mortgage Insurance (LMI) is an insurance policy, which protects your bank if you default on the loan (i.e. stop paying your loan). While the bank takes out the policy, you pay the premium. Generally you can ‘capitalise’ the premium – meaning that instead of paying it upfront in one hit, you roll it into the total amount you owe, and it becomes part of your regular mortgage repayments.

This additional cost is typically required when you have less than 20 per cent savings, or a loan with an LVR of 80 per cent or higher, and it can run into thousands of dollars. The policy is not transferrable, so if you sell and buy a new house with less than 20 per cent equity, then you’ll be required to foot the bill again, even if you borrow with the same lender.

Some lenders, such as the Commonwealth Bank, charge customers with a small deposit a Low Deposit Premium or LDP instead of LMI. The cost of the premium is included in your loan so you pay it off over time.

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 difference between fixed, variable and split rates?

Fixed rate

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.

Variable rate

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 a loan-to-value ratio (LVR)?

A loan-to-value ratio (otherwise known as a Loan to Valuation Ratio or LVR), is a calculation lenders make to work out the value of your loan versus the value of your property, expressed as a percentage.   Lenders use this calculation to help assess your suitability for a home loan, and whether you need to pay lender’s mortgage insurance (LMI). As a general rule, most banks will require you to pay LMI if your loan-to-value ratio is 80 per cent or more.   LVR is worked out by dividing the loan amount by the value of the property. If you are looking for a quick ball-park estimate of LVR, the size of your deposit is a good indicator as it is directly proportionate to your LVR. For instance, a loan with an LVR of 80 per cent requires a deposit of 20 per cent, while a 90 per cent LVR requires 10 per cent down payment. 

LOAN AMOUNT / PROPERTY VALUE = LVR%

While this all sounds simple enough, it is worth doing a more accurate calculation of LVR before you commit to buying a place as there are some traps to be aware of. Firstly, the ‘loan amount’ is the price you paid for the property plus additional costs such as stamp duty and legal fees, minus your deposit amount. Secondly, the ‘property value’ is determined by your lender’s valuation of the property, not the price you paid for it, and sometimes these can differ so where possible, try and get your bank to evaluate the property before you put in an offer.

What is a comparison rate?

The comparison rate is known as the ‘real’ interest rate you have to pay – unlike the advertised interest rate, which is often an artificially low number. That’s because the comparison rate includes both the advertised rate and the associated fees. According to the industry standard, comparison rate calculations are made on the assumption that the car loan will be for $30,000 over five years.

What happens to your mortgage when you die?

There is no hard and fast answer to what will happen to your mortgage when you die as it is largely dependent on what you have set out in your mortgage agreement, your will (if you have one), other assets you may have and if you have insurance. If you have co-signed the mortgage with another person that person will become responsible for the remaining debt when you die.

If the mortgage is in your name only the house will be sold by the bank to cover the remaining debt and your nominated air will receive the remaining sum if there is a difference. If there is a turn in the market and the sale of your house won’t cover the remaining debt the case may go to court and the difference may have to be covered by the sale of other assets.  

If you have a life insurance policy your family may be able to use some of the lump sum payment from this to pay down the remaining mortgage debt. Alternatively, your lender may provide some form of mortgage protection that could assist your family in making repayments following your passing.

What does ‘pre-approval’ mean?

Pre-approval for a home loan is an agreement between you and your lender that, subject to certain conditions, you will be able to borrow a set amount when you find the property you want to buy. This approach is useful if you are in the early stages of surveying the property market and need to know how much money you can spend to help guide your search.

It is also useful when you are heading into an auction and want to be able to bid with confidence. Once you have found the property you want to buy you will need to receive formal approval from your bank.

Can you remove a cosigner from a home loan?

Taking out a home loan is an act of financial responsibility and a cosigner on a home loan shares that responsibility. For this reason, removing a cosigner from a home loan may not be straightforward. Usually, you can add a cosigner, or become a cosigner, when applying for the home loan. In such a circumstance, the lender may ask you to stipulate the conditions for a cosigner release, which are the terms for removing a cosigner from the home loan. For instance, you may agree that you can remove a cosigner once half the loan amount has been repaid.

However, not stipulating such conditions doesn’t mean it’s impossible to remove a cosigner. If the primary home loan applicant has a sufficiently high credit score and has not delayed any repayments, the lender may be willing to remove the cosigner. You should confirm that doing so doesn’t affect the terms of the loan. If the lender doesn’t agree to remove the cosigner, the primary home loan applicant may have to refinance the loan in order to do so. If there were specific reasons for needing a cosigner and those reasons are still valid, then you may have some challenges with refinancing.

Can I salary sacrifice my home loan?

You can pay for your home loan straight from your pre-tax salary by salary sacrificing. Of course, this will depend on your employer’s policy. 

Salary sacrifice for home loans is offered exclusively for owner-occupied properties, so it cannot be used for investments.

Your employer may need to pay Fringe Benefits Tax (FBT), but non-profit organisations are exempt from this tax up to a certain limit. Some organisations may charge you an administrative fee to set this up. 

Keep in mind not all lenders accept salary sacrifice payments on your mortgage. Some lenders, like NAB, accept salary sacrificing for home loans.

Salary sacrificing won’t work for everyone, but in certain circumstances there are benefits to paying your home loan from your pre-tax income. These include reduced tax liability and potentially paying off your home loan quicker.

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Calculate what your repayments could be on your home loan.

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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.