We currently don't have a partnership for that product, but we have other similar offers to choose from (how we picked these ):
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 comparing the best home loans for cashback, you can see how each home loan stacks up against other home loans with the same borrower type, rate type and repayment type. We also take into consideration the amount of cashback offered when calculating the Score so you can tell if it's really worth it.
Read the full Finder Score breakdown
You’d think it was as simple as looking at the lowest number in the table, right? Well, it can be. But there are some things to watch out for that could make your cheap home loan…not so cheap.
The starting point is to always look at the rate. The lower rate, the lower your repayments.
Some loans lure you in with a cheap attractive rate, but then you find it piles on a huge fee to apply and another fee to pay each month as well. Your cheap rate now costs you more per month than the slightly higher interest rate with no fees.
Comparison rates are normally based on loans of $150,000 so they’re not always helpful. But if the comparison rate is much higher than the actual interest rate, you can bet there are other costs driving your repayments up.
It’s all well and good getting a low interest rate but if you’re sacrificing access to features that could save you money in the long run, it’s not worth it. Take an offset account, for example. Using an offset account will mean you pay down the loan faster because it reduces the amount of interest you need to pay.
The number one factor in determining a cheaper home loan is a low interest rate.
Let's compare 2 otherwise identical home loans with slightly different interest rates.*
| Interest rate | 7.08% | 5.69% |
|---|---|---|
| Loan amount | $641,143 | $641,143 |
| Loan term | 30 years | 30 years |
| Monthly repayment | $4,301 | $3,718 |
| Monthly saving | N/A | $583 |
| Annual saving | N/A | $6,996 |
As you can see, with the lower interest rate, you save $583 a month – or $6,996 a year.
*We're using the average owner-occupier home loan size from the ABS, the average variable rate loan in Finder's database of the full market and the lowest variable rate.
Every month, we analyse the rates in our database to create a list of the market's cheapest loans.
The lowest variable interest rate in Finder’s database is 5.69%
The lowest fixed interest rate in Finder’s database is 4.99%
Interest rates can change depending on your circumstances, but as a guide, here are the cheapest home loans from the big 4.
| Bank | Cheapest Fixed Rate | Cheapest Variable Rate |
|---|---|---|
| ANZ | 5.74% | 6.09% |
| CBA | 6.04% | 6.15% |
| NAB | 5.89% | 6.44% |
| Westpac | 5.89% | 6.74% |
The Big 4 have joined other lenders in dropping their fixed rates, so they offer much more competitive rates than they did a few months ago. But it's important to remember you'd be locked into those rates, when it's widely predicted rates will start falling next year.
The lowest variable rates by the big 4 are from ANZ and CBA which are both from their digital loan offerings launched this year: ANZ Plus Home Loan and CBA's Digi Home Loan.
"I wanted to make sure I have one of the cheapest home loans on the market. So I found an online lender with a consistently low interest rate (I should know, I check rates every month). But I also made the sure the loan had an offset account. For me, being able to build up savings in the offset account speeds up my loan and cuts down my overall interest charges dramatically. This makes the loan much cheaper in the long run."
At a very basic level, the cheapest home loan is the one with the lowest rate. But every borrower has different needs. So beyond a low rate, you need to get a loan that actually helps you achieve your property goals and financial needs.
Home loans are normally taken out for 30 years, but the sooner you can repay the more you'll save! Most variable rate home loans allow you to make extra repayments and pay the loan early.
Fixed rate loans are less likely to allow extra repayments and will probably charge a break fee if you do repay early.
The cheapest loans are likely owner-occupier loans, but if you're buying an investment property they won't help you. You might also want an interest-only loan for the tax benefits if you're an investor.
The money you'll save by using an offset account may very well mean you end up paying less than if you went for a lower rate without an offset account. Check out our guide on offset accounts to see if it could help you.
If I had to credit just one thing with helping me repay my home loan in just 7 years, I'd say it was an offset account. This is a debt-busting secret weapon. You should keep every cent to your name in one of these – we're talking your savings for everything, your emergency cash stash and even your salary. You'll likely save tens of thousands of dollars and shave years off your time in debt.
Nicole Pedersen-McKinnon
Freelance finance journalist
Most borrowers choose 30-year loan terms.
If you picked a shorter loan term your monthly repayments would be higher, but you'd pay off your loan 5 years earlier, saving thousands in interest.
Let's look at 3 examples where the loan term changes:
| Loan term | 30 years | 25 years | 20 years |
|---|---|---|---|
| Interest rate | 6.00% | 6.00% | 6.00% |
| Loan amount | $600,000 | $600,000 | $600,000 |
| Monthly repayment | $3,598 | $3,866 | $4,299 |
| Total cost* | $1,295,030 | $1,159,743 | $1,031,611 |
*Total cost here refers to the amount of interest you pay over the life of the loan, plus the principal.
Some lenders charge multiple loan fees that can add up to hundreds of dollars. But other lenders charge basically no fees at all (you still have to pay government fees like a mortgage registration fee).
If 2 loans have identical interest rates and features, the one with fewer fees will be the cheapest home loan.
Easier said than done, of course. But saving a bigger deposit means borrowing less money. And that instantly makes your home loan cheaper.
It saves you money in other ways too:
Let us do the talking - we spoke to heaps of experts, brokers, banks and real humans to put 20+ hours into this guide. Our editors regularly talk to buyers, refinancers, investors and every one in-between to keep this information useful.
Rates obsessed - We track big banks, small banks, credit unions and digital banks because even 1 decimal place could save you big bucks (without getting annoying calls!).
Ready when you need it - Lending rates verified from 180+ products day and night. Whether you've remembered you need to refinance at 3am or live at an auction - our rates are up-to-date.
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.
We compile the average home loan interest rates in the market and update them monthly.
Compare the home loans from Teachers Mutual Bank for buying your first home, your next home, refinancing your existing loan or investing in property.
Compare current bank interest rates for home loans, credit cards, personal loans, savings accounts and term deposits to find the best deal for you.
You may be able to get a low deposit home loan with just a 5% cash deposit. Here are the lenders who are more likely to lend you a 95% loan.
The best investor home loan rates that have been offered in years have hit the market. Compare investment property loan rates today.
Find a great deal on a variable interest rate home loan from lenders large and small. Start comparing and saving today.
Learn how to compare rates to find the best home loan and start saving money on your mortgage today.
What is an offset account? It can save you thousands in interest and help you own your home sooner.
We have migrated to Sydney with 457 skilled migration 4 year visa and my wife working as a GP with 5 year contract.
please need to find what kind of and how much with LTV we can borrow for a mortgage.
Hi Mohammed,
Thank you for contacting Finder.
We have a page of information about loans about non-residents and how they are able to apply for a home loan within Australia.
You can also reach out to a mortgage broker who can assist you with the application process and let you know what is needed of you.
Good luck,
Jodie
What does comparison rate mean?
Hi Bill,
That’s a great question.
All Australian lenders are required to display the comparison rate as this reflects the true cost of the home loan. While the interest rate is the percentage of your loan that you will pay in additional to the original loan amount, the comparison rate is a percentage that is calculated by adding the interest rate, plus any additional fees and charges that may apply to the loan.
When comparing different home loans, always compare the comparison rate to ensure that you understand the total cost of the loan.
As a rule of thumb, you should be cautious about any home loan that has a 1-2% point difference between the interest rate and the comparison rate.
Kind regards,
Belinda
I want to apply for a house loan.our budget is 35lakhs.which bank is better
Hi Manu,
Thanks for your enquiry.
If you need personalised advice regarding your home loan options, you should consult a mortgage broker near you. A broker will be able to help you understand your borrowing capacity and they can leverage their network of lenders to find one that’s likely to review your application.
All the best,
Belinda
I am retired now and have been advised I cannot get a mortgage. Yet on capacity to pay I can afford up to $140K based on what I am currently paying in rent. So how is this fair? NB I don’t want $140K but $80K might be nice. I was unfortunate enough to get caught up in the GFC so have to start again from scratch.
Hi Hans,
Thanks for getting in touch, and I’m sorry to hear about your situation.
Many banks are conservative about lending to retired borrowers due to the risk involved. Your best course of action would be to speak to a licensed mortgage broker regarding your borrowing options.
A broker will be able to help you understand your borrowing capacity and they can also draw upon their panel of lenders to find one that may be more inclined to review your application. Additionally, a broker can negotiate for better terms (e.g. a competitive rate) on your behalf.
Your ability to qualify for a home loan during retirement will depend on your income, assets, credit history, and any existing debt that you have (e.g. personal loans or credit cards). Most lenders will treat these kinds of applications on a case-by-case basis.
Depending on your needs, you may want to consider a fixed rate home loan to offer security or otherwise you may want to find a home loan with minimal ongoing fees.
Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you.
All the best,
Belinda
Hi Jeffrey,
Thanks for reaching out.
Generally, applying for a home loan while on the pension can be difficult but there are still options available to you. Your best course of action would be to speak to a licensed mortgage broker as they’ll be able to draw upon their panel of lenders to find a specialist lender that may be more likely to review your application.
On our page for loans for people receiving Centrelink benefits, you can see which conditions may apply to your benefit type. Keep in mind that most lenders only accept a pension benefit as a secondary source of income when applying for a home loan.
Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you.
Kind regards,
Belinda