For most people, the best home loan typically has a low interest rate, no fees and an offset account.
But what makes the best home loan for one person won't necessarily make the best home loan for another.
Because of that, our experts have chosen top picks for different home loans that might be the best for different people, depending on what they want from their loan.
Our picks for the best home loans for May:
These home loans have a Finder Score of at least 8/10. The higher the score, the better the loan against others in its category. Scores above an 8 will have lower rates and fees than other loans of its type.
You can’t borrow more than 80% of the property value
Why we like it
This home loan offers a perk like no other. Not only does it consistently have great rates, but for every year that you have the loan, Unloan will knock 0.01% off your interest rate. This means your loan will get slightly cheaper every year (on top of being a consistently low rate compared to most home loans).
Unloan doesn't bump up the costs in other areas either, as this home loan has no fees. If you're not concerned about an offset account, it's hard to beat a loan this cheap.
This home loan has a Finder Score of 9.87.
Best home loan pick for first home buyers
G&C Mutual Bank First Home Buyer - (Owner Occupier, P&I)
With LMI you can take out this loan with as little as a 5% deposit
There are no establishment or ongoing fees
You can make unlimited extra repayments and redraw the funds
This product is only available if you’re a first home buyer
If you’d prefer to deal with a lender in person, G&C Mutual Bank only has 6 service centres in NSW and 1 in Melbourne
Why we like it
Rewarding first home buyers with a home loan packed with benefits, G&C Mutual scores a high Finder Score for this product. Not only can you take out this loan with only a 5% deposit, it offers you the flexibility to make unlimited extra repayments and the ability to redraw those funds if you need them. That's great for new buyers who are keen to get ahead on their home loan but with the option to access the cash in an emergency.
You can’t borrow more than 80% of the property value
Why we like it
Investors sometimes pull the short straw with their home loans, but Unloan rewards its investor borrowers with the same perk as its owner occupiers. For every year you hold the loan, Unloan will knock off 0.01% from the interest rate. Add that to no fees and unlimited redraw, this makes a great loan.
This home loan has a Finder Score of 9.69.
Best home loan pick for cashback
Greater Bank Ultimate Home Loan - Discounted Variable ($150K+ Owner Occupier) New Loans only
Offering a cashback is only really a perk if you've got a good home loan to back it up. Greater Bank manages to offer a competitive $2,500 cashback while also scoring highly with Finder Score, meaning it's a lower costing, competitive option compared to similar loans of its type.
This home loan has a Finder Score of 9.49.
Best home loan pick for redraw
ANZ Plus Home Loan Variable Rate - (Owner Occupier, P&I)
Track your loan repayments and progress with the app
This loan (and cash back offer) is only available for refinancers earning a PAYG income.
You cannot use ANZ branches or ANZ Internet Banking to apply for or manage an ANZ Plus home loan.
This loan is not available for borrowers in Tasmania and the Northern Territory.
Why we like it
ANZ’s digital offering with ANZ Plus offers one of the most competitive interest rates from a Big Four provider. Not only do you get the satisfaction of a Big Four name, but you benefit from no application fee, plus a 100% offset account.
This home loan has a Finder Score of 9.44.
Best home loan pick for offset
G&C Mutual Bank Momentum Home Loan (Owner Occupier, P&I)
The Momentum Home Loan charges no application fee which can often be hefty cost. It also doesn't charge any ongoing fees, keeping the costs low for borrowers. It has options for low deposits and it also includes an offset account so you can reduce the interest you'll pay on the loan and maybe even pay it off sooner.
This home loan has a Finder Score of 9.58.
How do I get the best deal on a home loan?
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 the 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."
The ideal home loan is one with the lowest interest rate - but that doesn't mean it's the best one for you!
The best home loan is unique to your own circumstances. It's about finding one that fits your life, your goals and your budget.
For example, the best home loan for a first home buyer won't be the best home loan for a seasoned investor.
And while many borrowers in today's market are choosing a variable interest rate, that's not necessarily the best for everyone.
Whatever the situation, the best home loan is the one that saves you money and gives you the tools to manage your mortgage on your terms.
Let's take a look at some scenarios:
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 first home buyer struggling to save a 20% deposit
Many aspiring first time property buyers find saving for their deposit the most difficult hurdle. In this case, the best home loan is not necessarily one with the lowest interest rate.
The best home loan may be one that allows for a higher loan-to-value ratio. This allows them to borrow with a lower deposit, usually as low as 5%. These loans typically come with slightly higher interest rates.
First home buyers may also want to take advantage of government first home buyer schemes. Not all lenders take part in these schemes so the best home loan here would be from a lender that does.
A homebuyer with extra money in savings
Whether you're buying your first home or refinancing your existing loan, ideally you're looking for a low interest rate. But sometimes the best home loan is a slightly higher interest rate in exchange for better features. Particularly if that feature is an offset account, which could actually save you more money than if you'd gone for a lower rate.
If you have money sitting in your savings account, and you don't want to invest it, a loan with a 100% offset account might be the best one for you.
Any money in your offset account is taken off your remaining loan value, reducing the amount of interest you'll pay. The more money you save in there, the more money you'll save on interest over the life of the loan.
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.
You're a young couple wanting to start a family
Whether you're a first home buyer or you're refinancing, you'll need to decide between a variable interest rate or a fixed interest rate. While for a lot of people choosing between the 2 might be more about the market, the best option for you may depend on other reasons.
Perhaps you're a couple planning to start a family in the next couple of years. A fixed rate might give you the confidence that your repayments aren't going to change as you navigate parental leave and the extra costs of a family. As such, this may give you the peace of mind that that makes it the best loan for you over a variable loan.
What are the best home loans in 2025?
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 2025 Finder Best Home Loan Awards. Like the loans with high Finder Scores, these loans will have lower costs than other loans in their category.
🏆 Best Customer-Owner Home Loan Lender – Easy Street
🏆 Best Owner Occupier Variable Home Loan – Tiimely Home – Own 10% deposit variable Rate - Principal and Interest (with offset)
🏆 Best Owner Occupier Fixed Home Loan - 1 year – Qantas Money – Fixed Rate Home Loan - 100% Offset 1 year Fixed (Owner Occupier, P&I)
🏆 Best First Home Buyer Home Loan – Tiimely Home - Own 10% deposit variable Rate - Principal and Interest (with offset)
🏆 Best Refinance Variable Home Loan – Tiimely Home – Own 10% deposit variable Rate - Principal and Interest (with offset)
🏆 Best Refinance Variable Home Loan - Large Bank – Bendigo Bank – Express Variable Home Loan (owner occupier, P&I)
🏆 Best Investor P&I Variable Home Loan – Easy Street - Smart Variable Home Loan (investor, P&I)
🏆 Best Investor IO Variable Home Loan – Queensland Country Bank – Ultimate Home Loan Package, Special Variable Rate, (Investor, IO)
🏆 Best Investor P&I Fixed Home Loan - 1 Year – Qantas Money – Fixed Home Loan, 100% offset, 1 year fixed (Investor, P&I)
🏆 Best Investor IO 1 year fixed home loan – Qantas Money – Fixed Home Loan, 100% offset, 1 year fixed (Investor, IO)
🏆 Best Fixed Home Loan Lender - Investor – Qantas Money
🏆 Best Value Home Loan – Unloan - Variable Home Loan (Owner Occupier)
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%
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 and rates are changing as lenders expect the cash rate to fall.
Typically, the lowest interest rates are offered by online lenders rather than larger banks like the Big Four. But there's not always a big gap, and this doesn't mean the Big Four don't offer the best loan for you.
Finding the best interest rate is still important though, because you can save thousands in the cost of repayments.
A $600,000 home loan with a 5.00% interest rate over 30 years would cost you $3,221 a month. But the same loan with an interest rate of 5.50% would cost you $3,407 a month. That's $2,232 more expensive in a year.
Rates vary based on the loan type and features. But as a general guide:
The average variable owner occupier interest rate for May 2025 is 6.93%. The lowest variable owner occupier interest rate for May 2025 is 5.59%
The average fixed owner occupier interest rate for May 2025 is 6.25%. The lowest fixed owner occupier interest rate for March 2025 is 4.99%
To get a wider sense of what's a competitive rate in the current market, take a look at our current home loan rates guide.
Most interest rates are closer to the 5.50% mark, with some fixed rate options even lower. 4.75% would be an incredible interest rate for this period, but the lowest rate on the market at the moment is a fixed rate of 4.99%.
The lowest rates at the moment typically have conditions attached (like green energy conditions) or have lower LVRs.
The rate you can get also 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. It is only a good interest rate if it delivers the home loan you need.
Package home loans offer you a combination of a home loan, bank account and a credit card, sometimes with other products too.
They can be a good offering if you are in the market for those other products, as they usually remove the normal fees for those additional products. The loans come with very competitive fees. In fact, many package loans score highly with our Finder Score, meaning they are competitive in cost with basic home loans.
Package home loans will come with an annual package fee though. This can cost a few hundred dollars a year and 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]
Explaining our top picks
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.
Rebecca Pike is Finder’s senior money writer, with over 10 years of experience in mortgages and personal finance. A frequent TV and radio commentator, she frequently appears on Sunrise, A Current Affair, 9News, and Sky News, and contributes expert analysis to publications like Yahoo Finance and The Latch. Rebecca previously served as Editor of Mortgage Professional Australia. She has a Master’s degree in Journalism as well as ASIC-recognised certifications in Tier 1 Generic Knowledge and Tier 2 General Advice Deposit Products, which comply with ASIC guidelines. See full bio
Rebecca's expertise
Rebecca has written 229 Finder guides across topics including:
What is the difference beteen the interest rate and the comparison rate?
BelindaJune 1, 2015
Hi Steve,
Thanks for your enquiry.
The interest rate is the percentage of your home loan that you’ll end up paying in addition to the original loan amount.
Whereas the comparison rate is a percentage amount calculated by adding together the interest rate plus any additional fees or charges associated with the loan. The figure is then converted into a percentage to reflect the true cost of the home loan.
If you compare home loans based on the comparison rate, you’ll get a more accurate idea of the true cost of the loan.
I hope this clarifies things for you.
Thanks,
Belinda
KMay 11, 2015
Are there any fees if you choose to pay out the Essentials home loan (on Interest only terms) earlier? If so, what are they? Thank you
JodieMay 12, 2015
Hi,
Thank you for contacting finder.com.au, we have followed up directly via email.
Regards
Jodie
raeleneMay 7, 2015
what is interest rate for fixed an varible.. and what charges are there?
Finder
MarcMay 7, 2015Finder
Hi Raelene,
thanks for the question.
The interest rates for fixed and variable rate home loans is different depending on the product. The table on this shows some of the different rates and fees for some home loans.
I hope this helps,
Marc.
JeffMay 1, 2015
Does it cost $ to ask a question of a 1300Home Loan broker through this website? I already have a home loan and want to compare rates to see if I am still getting the best deal. What if the broker decides that I am and so do not ned to change, will I have to pay them?
BelindaMay 5, 2015
Hi Jeff,
Thanks for your question.
It doesn’t cost anything to ask a question of a 1300 Home Loan broker through our website.
Please note that 1300 Home Loan consultants provide advice free of charge for all residential mortgages.
I hope this helps.
Thanks,
Belinda
derekApril 19, 2015
Hi was wondering if you can borrow money for a house and get extra to pay off your outstanding debts. I would be eligable for first home owners grant but have no deposit as pay 550 per week rent, thanks
JodieApril 28, 2015
Hi Derek,
Thanks for the question.
Home loans can be used to consolidate your debts through refinancing, please see our guide to refinancing your home loan to consolidate debt. To get any further advice on this type of borrowing you can also contact a lender or mortgage broker who can help your specific needs.
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.
Find a great deal on a variable interest rate home loan from lenders large and small. Start comparing and saving today.
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A property investor with a mortgage on the family home
A first home buyer struggling to save a 20% deposit
A homebuyer with extra money in savings
You've signed a contract to buy and you're running out of time
You're a young couple wanting to start a family
What are the best home loans in 2025?
What is the difference beteen the interest rate and the comparison rate?
Hi Steve,
Thanks for your enquiry.
The interest rate is the percentage of your home loan that you’ll end up paying in addition to the original loan amount.
Whereas the comparison rate is a percentage amount calculated by adding together the interest rate plus any additional fees or charges associated with the loan. The figure is then converted into a percentage to reflect the true cost of the home loan.
If you compare home loans based on the comparison rate, you’ll get a more accurate idea of the true cost of the loan.
I hope this clarifies things for you.
Thanks,
Belinda
Are there any fees if you choose to pay out the Essentials home loan (on Interest only terms) earlier? If so, what are they? Thank you
Hi,
Thank you for contacting finder.com.au, we have followed up directly via email.
Regards
Jodie
what is interest rate for fixed an varible.. and what charges are there?
Hi Raelene,
thanks for the question.
The interest rates for fixed and variable rate home loans is different depending on the product. The table on this shows some of the different rates and fees for some home loans.
I hope this helps,
Marc.
Does it cost $ to ask a question of a 1300Home Loan broker through this website? I already have a home loan and want to compare rates to see if I am still getting the best deal. What if the broker decides that I am and so do not ned to change, will I have to pay them?
Hi Jeff,
Thanks for your question.
It doesn’t cost anything to ask a question of a 1300 Home Loan broker through our website.
Please note that 1300 Home Loan consultants provide advice free of charge for all residential mortgages.
I hope this helps.
Thanks,
Belinda
Hi was wondering if you can borrow money for a house and get extra to pay off your outstanding debts. I would be eligable for first home owners grant but have no deposit as pay 550 per week rent, thanks
Hi Derek,
Thanks for the question.
Home loans can be used to consolidate your debts through refinancing, please see our guide to refinancing your home loan to consolidate debt. To get any further advice on this type of borrowing you can also contact a lender or mortgage broker who can help your specific needs.
Regards,
Jodie