Principal & interestInvestmentRefinance Only 20% min. deposit
6.29
%
p.a.
interest rate
6.20
%
p.a.
comp. rate
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 August:
These home loans have a Finder Score of at least 8/10 in each category.
Enjoy a discounted interest rate for staying below 80% of the property value
Make extra payments at any time
Withdraw excess funds from the mortgage via the redraw facility
No offset account for this product
Application fee of $449
Why we like it
You can get up to $4,000 in cashback depending on your loan size.
This loan comes with a free redraw facility, so you can use the cashback as an extra repayment towards the loan to reduce interest and then access it later if needed.e
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
Look for a loan that doesn't charge many fees. Ongoing annual fees can cost hundreds of dollars and one-off application or settlement fees can costs hundreds more.
While a low rate is more important, don't forget to add up the cost of fees. Take a look at our full guide on home loan fees so you know what to watch out for.
3. Get mortgage features you need
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.
Best Home Loan Awards winners for 2024
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.
"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."
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.[/faq_question]
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.
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 195 Finder guides across topics including:
can I obtain a home loan for a farm which is 42 ha which I intend to develop it has a home on it I am looking for 400;000 and I have 170,000
DanielleAugust 28, 2017
Hi Trent,
Thank you for contacting finder. We are a comparison website and general information service, we’re more than happy to offer general advice.
You are on the right page. You may customize, review, and compare the offers available on the table. Once you have selected one, you may proceed by clicking the green “Enquire Now” button.
I hope this helps.
Cheers,
Danielle
PatApril 17, 2017
Looking at Low Doc Loan max borrowing on my property current value around 1.1 million I am self employed what can you offer Pat
Finder
DeeApril 18, 2017Finder
Hi Pat,
Thanks for your question.
You may compare low doc home loans on our website to explore your options. The maximum amount that you can borrow depends on the LVR of the home loan product you are getting.
You may also check with a mortgage broker. A mortgage broker is a professional who compares and helps you apply for home loans on your behalf. A good mortgage broker will give you personalized service all the way through to settlement.
Cheers,
Anndy
JamilJune 26, 2016
If I am eligible to borrow 450k home loan for 30 years, what would be minimum repayment per week?
Finder
MarcJune 27, 2016Finder
Hi Jamil,
thanks for the question.
You can find out what your loan repayments would be for different loan rates using our repayment calculator.
I hope this helps,
Marc.
DegsyJanuary 22, 2016
What is the “advertised rate”? And “comparison rate”? And what is the difference?
Finder
MarcJanuary 22, 2016Finder
Hi Degsy,
Thanks for your inquiry.
The advertised rate is a interest rate charged for a home loan, and it’s decided by the lender. It’s used to work out what your loan repayments will be.
The comparison rate is the advertised rate including some of the fees of the home loan (The application fee and any ongoing monthly fees for example), and is accurate for the example of a $150,000 loan over 25 years. By law, comparison rates must be included on all home loan advertisements, as it gives you a way to see what the actual cost of a home loan is because of the inclusion of these fees.
Will I be able to borrow with my Income being from Income protection payments
BelindaAugust 21, 2015
Hi Tony,
Thanks for your enquiry.
Generally, income protection insurance is designed to help you cover expenses, such as mortgage repayments, in the event that you are unable to work due to injury or illness. Please note that your ability to service a mortgage using this benefit will depend on the type of cover that you have, but most policies provide up to 75% of your monthly income.
As lenders have different eligibility criteria to qualify for home loans, it would be best to contact the lender directly to see whether you can borrow using the benefit from your income payments.
Thanks,
Belinda
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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
can I obtain a home loan for a farm which is 42 ha which I intend to develop it has a home on it I am looking for 400;000 and I have 170,000
Hi Trent,
Thank you for contacting finder. We are a comparison website and general information service, we’re more than happy to offer general advice.
You are on the right page. You may customize, review, and compare the offers available on the table. Once you have selected one, you may proceed by clicking the green “Enquire Now” button.
I hope this helps.
Cheers,
Danielle
Looking at Low Doc Loan max borrowing on my property current value around 1.1 million I am self employed what can you offer Pat
Hi Pat,
Thanks for your question.
You may compare low doc home loans on our website to explore your options. The maximum amount that you can borrow depends on the LVR of the home loan product you are getting.
You may also check with a mortgage broker. A mortgage broker is a professional who compares and helps you apply for home loans on your behalf. A good mortgage broker will give you personalized service all the way through to settlement.
Cheers,
Anndy
If I am eligible to borrow 450k home loan for 30 years, what would be minimum repayment per week?
Hi Jamil,
thanks for the question.
You can find out what your loan repayments would be for different loan rates using our repayment calculator.
I hope this helps,
Marc.
What is the “advertised rate”? And “comparison rate”? And what is the difference?
Hi Degsy,
Thanks for your inquiry.
The advertised rate is a interest rate charged for a home loan, and it’s decided by the lender. It’s used to work out what your loan repayments will be.
The comparison rate is the advertised rate including some of the fees of the home loan (The application fee and any ongoing monthly fees for example), and is accurate for the example of a $150,000 loan over 25 years. By law, comparison rates must be included on all home loan advertisements, as it gives you a way to see what the actual cost of a home loan is because of the inclusion of these fees.
You can find out more about it in our home loan comparison rate guide.
I hope this helps,
Marc
Will I be able to borrow with my Income being from Income protection payments
Hi Tony,
Thanks for your enquiry.
Generally, income protection insurance is designed to help you cover expenses, such as mortgage repayments, in the event that you are unable to work due to injury or illness. Please note that your ability to service a mortgage using this benefit will depend on the type of cover that you have, but most policies provide up to 75% of your monthly income.
As lenders have different eligibility criteria to qualify for home loans, it would be best to contact the lender directly to see whether you can borrow using the benefit from your income payments.
Thanks,
Belinda