Compare Home Loans from 30+ Australian Lenders

A comparison rate is a single percentage that includes the interest rate plus most fees and charges associated with a home loan. It gives a more accurate picture of the true cost of a loan than the advertised rate alone. Comparison rates are calculated on a $150,000 loan over 25 years, as required by Australian law.

Comparison rates combine the interest rate with most fees into a single percentage. They are a legal requirement in Australia under the National Consumer Credit Protection Act. Always compare loans using the comparison rate rather than the advertised headline rate to understand the true cost.

Most Australian lenders require a minimum 5% deposit, but a 20% deposit avoids Lenders Mortgage Insurance (LMI). For a $600,000 property, that means $30,000 minimum or $120,000 to avoid LMI. First home buyers may qualify for government schemes allowing 2-5% deposits without LMI.

Loan-to-Value Ratio (LVR) is your loan amount divided by the property value. Lower LVR means better rates. Below 60% LVR typically gets the best rates. Above 80% LVR triggers LMI. Above 90% LVR attracts significantly higher rates and stricter lending criteria from most Australian lenders.

In 2026, fixed rates on our panel sit around 5.84%-7.89% and variable rates around 5.69%-8.00% (live CDR data). Fix if you want certainty. Choose variable if you want offset accounts and flexibility. A split loan offers both. Historical data shows variable has been cheaper over 70% of the time over 20 years.

A split loan divides your mortgage into a fixed portion and a variable portion. For example, 60% of the balance fixed and 40% variable. This provides partial certainty on repayments while maintaining flexibility for offset accounts and extra repayments on the variable portion.

APRA requires lenders to assess your ability to repay at the loan rate plus a 3% buffer. If you apply at, say, an illustrative 6.5%, the lender tests whether you can afford repayments at 9.5%. This reduces maximum borrowing capacity but protects borrowers from rate rises. The buffer has been 3% since October 2021.

On a $600,000 variable loan over 30 years, a 0.25% rate increase adds approximately $95/month ($1,140/year). A 1% increase adds approximately $375/month ($4,500/year). Fixed rate borrowers are unaffected until their fixed term expires. Budget for potential 1-2% increases above your current rate.

An offset account is a transaction account linked to your home loan. Your balance reduces the loan amount that interest is calculated on. With $50,000 in offset on a $600,000 loan at 6.2%, you only pay interest on $550,000, saving approximately $3,100 per year in interest.

An offset account is a separate transaction account that reduces interest daily. A redraw facility lets you withdraw extra repayments you have made on the loan itself. Offset accounts offer more flexibility for daily banking, while redraw may have restrictions on minimum withdrawal amounts ($500-$1,000).

Lenders Mortgage Insurance (LMI) protects the lender if you default. It applies when your deposit is less than 20% and costs $8,000-$35,000 depending on the loan amount. Avoid it by saving a 20% deposit, using a guarantor, or applying through the First Home Guarantee (10,000 places per year).

Common fees include application/establishment ($0-$600), valuation ($0-$300), settlement ($200-$500), ongoing monthly ($0-$15/month), and discharge ($150-$400). Many online lenders now offer fee-free loans. Always check the comparison rate which factors in most fees.

You need 100 points of ID (passport, driver's licence), 2-3 recent payslips, 2 years of tax returns (if self-employed), 3 months of bank statements, details of existing debts, and a signed contract of sale. Digital lenders may auto-verify income via Open Banking.

Pre-approval takes 1-3 business days for digital lenders and 3-7 days for major banks. Full unconditional approval takes 2-4 weeks on average, depending on property valuation, documentation completeness, and lender processing times. Digital lenders like Athena and Unloan are typically faster.

Yes, specialist lenders in Australia offer home loans for borrowers with adverse credit history. Expect higher rates (1-3% above standard), larger deposit requirements (20%+), and stricter conditions. Improving your credit score before applying will significantly reduce your costs.

Yes, but it is more difficult. Lenders need proof you are returning to work and will assess you on your returning salary. Some lenders require a letter from your employer confirming return date and role. Government parental leave payments are generally not counted as income.

Switching (refinancing) involves applying with a new lender, who pays out your existing loan. The process takes 4-8 weeks. Costs include discharge fees ($150-$400), valuation fees ($0-$300), and potential new application fees. Most borrowers save $2,000-$5,000 per year by refinancing to a lower rate.

A guarantor loan uses a family member's property as additional security, allowing you to borrow up to 100% of the purchase price without LMI. The guarantor does not make repayments but is liable if you default. Once your LVR drops below 80%, the guarantor can be released.

Negative gearing occurs when the costs of owning an investment property (interest, expenses) exceed the rental income. The loss reduces your taxable income. On a $500,000 investment loan at 6.5%, annual interest is $32,500. If rent is $25,000, the $7,500 loss offsets your income tax.

Missing one repayment incurs a late fee ($10-$20) and a 14-day notice. Multiple missed payments trigger default proceedings, a negative credit report entry, and potentially property repossession after 3-6 months. Contact your lender immediately if you are struggling - hardship provisions are available.