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.
I would like to know anyond that would lend me a small loan to purches a home I pay $1660-00 rent and would half it by buying my place saving me $800-00 a month to do so but because I am a pensioner I cant get any where and the rent just goes up all the time need to move bad
i was hoping to find out when switching home loan providers to get a better interest rate home long do they require your employment status to be.
As im about to start a new job.
Hi Paul,
Thank you for your comment on finder.com.au, a financial comparison website.
Each lender has their own set of lending criteria that a borrower must meet before they can take out a loan but in general they prefer that you are outside of your probationary period but it would be best to contact a mortgage broker to discuss your specific situation.
Regards
Jodie
Hi there i see your example of the 30 year compared to the 20 year loan repayments you can save a lot but if you keep the 30 year loan and pay off more than your repayments this will have the same effect is that correct?
Cheers.
Hi do you know of any non major banks who do land and construction loans for people who have defaults on their credit file ?
Hi Anon,
Thank you for your question and for contacting Finder.
Generally, lenders who offer construction home loans require borrowers to have a good credit rating as this type of loan is some kind of different from a regular home loan. Though there are also specialist lenders in Australia who offer regular home loans to borrowers with unpaid defaults, you can find them listed on our page about bad credit home loans. Just in case you may want to verify or check if they also offer land and construction loans, I suggest you contact a lender featured on that page directly.
Cheers,
May
Hi Daniel,
Thanks for your enquiry.
If you keep the loan term to 30 years and commit to making additional monthly repayments, then you can potentially reduce both the interest payable and time taken to repay your debt.
You can use our extra loan repayment calculator to estimate the interest and time you can save by making extra monthly repayments on your mortgage.
Kind regards,
Belinda
Hi
I have a mortgage with one of the big 4 banks and am planning to request for refinancing with 80% LVR. However, the best rate they can offer is 4.64% and they cannot go any further.
Considering there are other lenders which offer lower rates at 80% LVR, can you please advise if it is safer to keep the loan with a big 4 compared to the non-bank lenders? I was given the impression that higher interest rate is because they are a more secure lender.
I am hesitant to change lender due to this but at the same time would like to pay lower interest rates.
Thanks
Hi Maggie,
Thanks for your question.
We have recently published an article about Big Four bank home loans and what it means for financial stability. The financial system in Australia is well regulated and all lenders are required to hold enough equity to absorb financial shocks.
Ultimately, the decision is up to you, I suggest that you consider speaking with a mortgage broker or a financial planner for a second opinion.
Cheers,
Shirley
Hi,
I have a current 340000 mortgage, property is currently valued approximately 500,000 to 580,000. outstanding 15000 debt. I’m considering best loan option to refinance, consolidate debt and include renovations. What do you suggest the best option to take?
Thanks.
Hi Sam,
Thanks for your question.
We have a few articles that may be able to help with your decision:
– Refinancing home loans guide
– Refinancing to renovate
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.
Hope this helps,
Shirley