There isn't one best home loan on the market. And all home loans can't be compared equally. So our experts have chosen a top pick for each type of home loan offer that appeals to a wide variety of people in Australia.
Our picks for the best home loans for December:
These home loans have a Finder Score of at least 8/10 in each category.
Every month, our home loan experts take a look at the top scoring products in our Finder Score data to find the best home loan picks from our partner lenders.
Our home loan picks showcase the best loans for:
First home buyers
Refinancers
Investors
Redraw
Offset accounts
Cashback offers
What is Finder Score?
The Finder Score crunches 7,000 home loans across 120+ lenders. It takes into account the product's interest rate, fees and features, as well as the type of loan eg investor, variable, fixed rate - this gives you a simple score out of 10.
To provide a Score, we compare like-for-like loans. So if you're trying to find the best home loan for you, you can see how each product stacks up against other home loans with the same borrower type, rate type and repayment type. In the case of fixed loans, we also split them up into short term and long term fixed rates.
There are 3 things every borrower needs to look at when hunting for the perfect home loan:
Find a lower rate
Avoid big fees
Get mortgage features you need
1. Find a lower rate
The interest rate determines your borrowing costs. The lower the rate, the less interest you pay each month.
Let's say your loan amount is $500,000 with a 30-year loan term. Here's how different rates change the repayments.
Interest rate
Monthly repayment
5.75%
$2,918
6.00%
$2,998
6.25%
$3,079
6.50%
$3,161
6.75%
$3,243
7.00%
$3,327
7.25%
$3,411
The best home loan will always have a low interest rate compared to most loans on the market.
2. Avoid big fees
While a low rate is more important, don't forget to add up the cost of fees. Ongoing annual fees can cost hundreds of dollars and one-off application or settlement fees can costs hundreds more.
Home loans with added features can offer you more flexibility in how you repay and manage your loan:
Offset accounts can help you cut down your interest repayments.
Redraw facilities let you take out extra money you've paid into your mortgage to use in emergencies.
Loan portability lets you move your home loan from one property to another without refinancing.
43% of Australians think an offset account is one of the most important features when considering a home loan, according to a Finder survey.
"For me, the best home loan needs to have an offset account along with a low interest rate. My home loan offset account is now my primary savings account. Instead of earning interest, I offset the interest my lender charges every day. This works for me because the rate on my home loan is higher than a savings account, and the debt is large. I'm saving thousands of dollars and will pay the loan off much faster this way."
Every year Finder runs awards to find the best home loans from the previous 12 months. These are the loans which came out on top in the 2024 Finder Awards.
🏆 Best Owner Occupier Variable Home Loan – Tiimely – Live in 10% deposit variable Rate - Principal and Interest (with offset)
🏆 Best Owner Occupier Fixed Home Loan - 1 year – BCU – Fixed Rate Home Loan, 1 year (Owner Occupier, P&I)
🏆 Best Owner Occupier Fixed Home Loan - 2 year – Australian Mutual Bank – Fixed Home Loan, 2 year fixed (Owner Occupier)
🏆 Best Owner Occupier Fixed Home Loan - 3 year – The Capricornian – Premium Choice Home Loan - Fixed 3 Year LVR ≤90% (Owner Occupier)
🏆 Best First Home Buyer Home Loan – Tiimely - Live in 10% deposit variable Rate - Principal and Interest (with offset)
🏆 Best Owner Occupier Refinance Variable – Tiimely – Live in 10% deposit variable Rate - Principal and Interest (with offset)
🏆 Best Owner Occupier Refinance Fixed – Pacific Mortgage Group - Fixed Home Loan - 1 Year (Owner Occupier, P&I)
🏆 Best Investor P&I Variable Home Loan – Bendigo Bank – Live in Express Variable Home Loan (Investor, P&I)
🏆 Best Investor IO Variable Home Loan – G&C Mutual Bank – Momentum Home Loan - LVR 60 to 80% Special Offer (Investor, IO)
🏆 Best Investor Fixed Home Loan - 1 Year – BCU – Fixed Rate Home Loan, 1 year (Investor, IO)
🏆 Best Investor Fixed Home Loan - 2 Year – Greater Bank – Great Rate Home Loan, 2 year fixed (Investor, IO)
🏆 Best Investor Fixed Home Loan - 3 Year – Greater Bank – Great Rate Home Loan, 3 year fixed (Investor, IO)
Check out the full awards page to learn more about how we chose the winners.
Top 5 home loan providers for customer satisfaction in 2024
Want to know what people actually feel about their home loan provider? Each year, thousands of Australians rate brands they've used as part of Finder's Customer Satisfaction Awards program. Aussies rate brands within a product category across a range of metrics, including 'value for money' and 'customer service'. Here are the results:
Lender
Overall satisfaction
Trustworthy/reliable
★★★★★ 4.23/5
91.5%
★★★★★ 4.17/5
92.5%
★★★★★ 4.16/5
94%
★★★★★ 4.09/5
92%
★★★★★ 3.97/5
92.5%
Why the best home loan is different for every borrower
Low rates and fees always matter. But every borrower's needs are slightly different. The best home loan for each borrower depends on their short- and long-term plans.
Here are some examples of specific borrowers with very different needs.
A property investor with a mortgage on the family home
Plenty of property investors haven't paid their own home loans off yet. For this type of borrower, one approach could be as follows:
Make sure your owner-occupier loan has a low interest rate. Focus on repaying this debt as fast as possible. The interest you pay on your home loan is not tax deductible. But it is on your investment loan.
Choose interest-only repayments on your investment loan. This allows you to minimise your investment loan repayments while focusing on your own home loan first. This makes sense because the interest is tax deductible too.
This is just one approach for a property investor to take. In a complex scenario like this, getting personal advice from a mortgage broker and an accountant is a really good idea.
A cautious homebuyer with plenty of extra money in savings
Let's say you have a 20% deposit and you're looking for a home loan. Obviously, the best loan for you has a low interest rate. But let's say you also have a lot of extra money sitting in your bank account earning very little interest.
Assuming you don't want to invest this money and want access to it in an emergency. In this scenario the best home loan for you will come with a 100% offset account.
The offset account means you can park your savings in the home loan. By saving the money there, you're cutting down the amount of interest your lender charges you.
You've signed a contract to buy and you're running out of time
If settlement day is fast approaching and you haven't got a home loan approved, the best home loan is the one that a lender will approve quickly.
This could mean a few things. You might abandon the hunt for a better deal and just talk to your own bank. Or you might try an online lender with a fast approval process.
Need more help finding the best home loan for you? Talk to a mortgage broker
Mortgage brokers are professionals who have access to a panel of lenders. They can find you a product that matches your financial needs and also help with your application.
There's no one best home loan for every borrower. And there is certainly isn't one bank that consistently has the best home loan in Australia.
Online lenders tend to offer the lowest interest rates. For many borrowers that's enough. But it's worth comparing a wide range of lenders to make sure you really find the bank or lender with the best loan for you.
At the moment, the home loan market is incredibly competitive. Lenders big and small are offering very competitive rates. In the past, you could usually find the lowest interest rates by looking at online lenders rather than the Big Four. But now the gap between the various lenders is much smaller.
And it's important to look at loan features too. A lender may have the market's lowest rate, but if the loan doesn't allow extra repayments or doesn't have an offset account (and you want one), then it's not the best loan for you.
There are many different home loan rates on the market, with different types of loans having higher or lower rates. To get a good sense of what's a competitive rate in the current market, take a look at our current home loan rates guide.
Right now, it's basically impossible to get a home loan below 5%. The best rates start around 5.8% for a fixed rate loan and are around and higher 6% for a variable rate loan. The rate you can get depends on each lender but also whether it is P&I or interest only; whether it is investment or owner occupied; and what your LVR is.
Many lenders offer very low interest rates on package home loans, especially fixed rate package loans. There is nothing wrong with a package loan. It just means you can combine the home loan with a bank account (that usually offsets your loan interest, saving you money) and a credit card or other products.
The package usually means you can avoid fees on some of the products. But you pay an annual package fee instead. This can cost a few hundred dollars a year. But you pay it every year of the loan.
To work out if a package loan is right for you, be sure to factor in the cost of the package fee. And decide if you really need the other products in the package. It could be a convenient option to have all your banking and loan products in one place. Or you might be better off finding a low rate loan elsewhere and avoiding the package aspect altogether.
It never hurts to ask for a discount. The worst your lender can do is say no. Some mortgage brokers claim they can get discounts for their clients, but you can always ask your lender yourself. It helps to be in a good financial position before asking for a lower rate, of course. [/fin_accordion]
Rebecca Pike is Finder's senior writer for money. She joined Finder after almost four years writing for business publications in the mortgage and finance industry, including three years as editor of Mortgage Professional Australia. She regularly appears as a money expert on programs like Sunrise and Today, as well as across radio and newspapers. She also holds ASIC-recognised certifications in Tier 1 Generic Knowledge and Tier 2 General Advice Deposit Products. See full bio
Rebecca's expertise
Rebecca has written 201 Finder guides across topics including:
Home loan cashback deals can help you refinance to a cheaper interest rate and get a lump sum cash payment. Compare the latest deals and check your eligibility today.
With a strong employment history and enough money in the bank, a temporary resident will be given almost the same opportunities as a citizen when it comes to home loans.
What is the best home loan rate for refinancing a $1.1m loan?
Finder
RebeccaNovember 22, 2022Finder
Hi Frederick,
The best home loan interest rate can vary depending on borrower circumstances and what you’re looking for in a home loan.
You can use our comparison tool to help you find the most competitive rates in the market. Consider your borrowing needs and shop around to look for loans with low fees and other loan features you might need.
You can also look into speaking with a mortgage broker to assist you in finding the loan that best fits your interest-rate needs and financial situation.
All the best,
Rebecca
SueMarch 4, 2020
I have a home loan for my current property around 300k. If i rent out that home rental income enough for pay capital& interest. If i want to buy another property, is it for borrowing power calculation is it total income alone
Used or bank use only % of my current income?
NikkiMarch 5, 2020
Hi Sue,
If the property has tenants and regular income the lender will probably take it into consideration when looking at borrowing power, but it’s worth checking with a lender before applying with them. Some lenders may only take 80% of your rental income as part of your borrowing power.
Best,
Nikki
angelesApril 24, 2019
hi,im looking for a low deposit home loan asap
Finder
JohnApril 25, 2019Finder
Hi Angeles,
If you are looking for low deposit home loan providers, look at the “Max LVR” portion of the comparison table we are on. The higher the Max LVR, the lower your deposit would be. An example is: For a Max LVR of 80%, you provide 20% deposit on it. Hope this helps!
Cheers,
Reggie
MarkJuly 1, 2018
I am 20 yrs old trying to go for my first house I work full time and I don’t have too much saved up yet in my opinion so where do I get started?
Finder
JoshuaJuly 1, 2018Finder
Hi Mark,
As a general rule, you need to save at least 10% of the property value. This can give a 5% buffer (for a maximum 95% LVR loan) to pay costs such as stamp duty and LMI onto the principal of the loan.
Ensure that there is a high likelihood that you’ll qualify for a home loan before you apply. The way the credit system works, each application for credit is recorded against your name. Multiple entries in a short space will more than likely lead to rejection. Other factors that lenders may consider to assess your eligibility are your income, assets, liabilities, employment and credit history.
Moreover, you mentioned that you are a first-time homebuyer. In this case, you may want to read our guide about the First Home Owners Grant.”
Finally, if you want to know more about the things you need in a loan when buying your first home.
Cheers,
Joshua
HelenNovember 23, 2017
I am 48. Never had a loan for anything as I believe you don’t get unless you have. I am entitled to the first home owners grant. Currently I’m on a sickness benefit but looking for work down the track. I’ve been looking at rentals but if I can buy my own home rather than pay someone elses off I don’t see why not to go for it. Where do I stand ?
Finder
JudithNovember 24, 2017Finder
Hi Helen,
Thanks for reaching out to us. I hope all is well with you today.
At the moment, we do not have a specific list of home loan lenders that accept sickness benefits as your main source of income. Finding a lender may require you to do some research or you may contact a mortgage broker who can take your personal circumstance into account and offer you a range of borrowing options. Once you’ve found a lender who is willing to help, you may proceed with the regular application process. Please note that you will need to provide extra information about your income.
Before applying, please ensure that you meet the eligibility criteria and requirements of the loan option or lender and make sure to read the details, as well as the relevant Product Disclosure Statements / Terms & Conditions of the loan option before making a decision and consider whether the product or option is right for you.
I hope this helps.
Cheers,
Judith
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Best Home Loan Awards winners for 2024
A property investor with a mortgage on the family home
A cautious homebuyer with plenty of extra money in savings
You've signed a contract to buy and you're running out of time
What is the best home loan rate for refinancing a $1.1m loan?
Hi Frederick,
The best home loan interest rate can vary depending on borrower circumstances and what you’re looking for in a home loan.
You can use our comparison tool to help you find the most competitive rates in the market. Consider your borrowing needs and shop around to look for loans with low fees and other loan features you might need.
You can also look into speaking with a mortgage broker to assist you in finding the loan that best fits your interest-rate needs and financial situation.
All the best,
Rebecca
I have a home loan for my current property around 300k. If i rent out that home rental income enough for pay capital& interest. If i want to buy another property, is it for borrowing power calculation is it total income alone
Used or bank use only % of my current income?
Hi Sue,
If the property has tenants and regular income the lender will probably take it into consideration when looking at borrowing power, but it’s worth checking with a lender before applying with them. Some lenders may only take 80% of your rental income as part of your borrowing power.
Best,
Nikki
hi,im looking for a low deposit home loan asap
Hi Angeles,
If you are looking for low deposit home loan providers, look at the “Max LVR” portion of the comparison table we are on. The higher the Max LVR, the lower your deposit would be. An example is: For a Max LVR of 80%, you provide 20% deposit on it. Hope this helps!
Cheers,
Reggie
I am 20 yrs old trying to go for my first house I work full time and I don’t have too much saved up yet in my opinion so where do I get started?
Hi Mark,
As a general rule, you need to save at least 10% of the property value. This can give a 5% buffer (for a maximum 95% LVR loan) to pay costs such as stamp duty and LMI onto the principal of the loan.
Ensure that there is a high likelihood that you’ll qualify for a home loan before you apply. The way the credit system works, each application for credit is recorded against your name. Multiple entries in a short space will more than likely lead to rejection. Other factors that lenders may consider to assess your eligibility are your income, assets, liabilities, employment and credit history.
Moreover, you mentioned that you are a first-time homebuyer. In this case, you may want to read our guide about the First Home Owners Grant.”
Finally, if you want to know more about the things you need in a loan when buying your first home.
Cheers,
Joshua
I am 48. Never had a loan for anything as I believe you don’t get unless you have. I am entitled to the first home owners grant. Currently I’m on a sickness benefit but looking for work down the track. I’ve been looking at rentals but if I can buy my own home rather than pay someone elses off I don’t see why not to go for it. Where do I stand ?
Hi Helen,
Thanks for reaching out to us. I hope all is well with you today.
At the moment, we do not have a specific list of home loan lenders that accept sickness benefits as your main source of income. Finding a lender may require you to do some research or you may contact a mortgage broker who can take your personal circumstance into account and offer you a range of borrowing options. Once you’ve found a lender who is willing to help, you may proceed with the regular application process. Please note that you will need to provide extra information about your income.
Before applying, please ensure that you meet the eligibility criteria and requirements of the loan option or lender and make sure to read the details, as well as the relevant Product Disclosure Statements / Terms & Conditions of the loan option before making a decision and consider whether the product or option is right for you.
I hope this helps.
Cheers,
Judith