Home loan interest Rates Comparison

While it is important to note that there is no one-size-fits-all mortgage, being able to determine your needs and match them to a product is what will help you find your own best mortgage. With the variety of home loans on offer, it is also highly likely that there will be several mortgages available that fit your purposes, so once you know what to compare and what you’re looking for, you will be able to identify some good options.

Using our rate table as a comparison tool will allow you to filter mortgages by many different features, to give you the best idea of which mortgages could be suitable for your needs.

How do I decide which is the best mortgage for me?

There are various aspects of a home loan you'll need to consider when weighing up whether it's the right one for you. Among the questions you should be asking yourself are:

• How long will I need to take out the loan for?
• Is it a fixed or variable rate product?
• What will my repayments be?
• Are there any restrictions I need to be aware of?
• Can I sustain a good lifestyle while paying off this mortgage?
• Are there any added fees that I need to factor into my calculations?
• Can I make any additional repayments if I want to?

Remember that while asking for advice from friends and family might be useful, it shouldn't form the basis of finding the best mortgage for your requirements. Everyone is different, which is why your mortgage comparison is so important.

Here is an explanation of some of the key factors that will assist you in determining what to look for when attempting to find the most suitable mortgage:

Interest rate

One of the first considerations to take into account before you look for a mortgage is whether you are looking for a variable or fixed interest rate. Most mortgages are based on a variable interest rate that will fluctuate over time with the Reserve Bank of Australia cash rate. There are, however, some mortgages available that will allow you to lock in a low interest rate for a period of time, which will assist you in planning for future repayments. Once you've decided on which type of loan you would like, it's time to start comparing interest rates.

During this process you will most likely notice that many of the lowest rates on the market are available only to borrowers with a large deposit, as they are considered to be less risky by lenders. For this reason, there is no best mortgage for all borrowers, as some borrowers will have access to lower rates depending on the size of their deposit and also whether they are an owner-occupier or investor. This is why using the customisable search function of our rate table will assist in revealing the ideal mortgages for your circumstances.

Fees

Another consideration in looking for a good home loan will be the fees that are charged. There are many different types of fees to be aware of when looking for a home loan. These can include:

• establishment fees;
• settlement fees;
• fees for using features such as an offset account of redraw facility, and;
• fees associated with making extra repayments.

Unfortunately, that doesn’t even cover the whole gamut of fees out there, so researching potential loan options thoroughly and enquiring about the fees they charge should be a must when looking for the best mortgage for your needs.

It is also possible to find loans that charge relatively little to no fees, so don’t think that you need to be locked into paying thousands in unnecessary costs. You can also negotiate with a lender when you are refinancing or taking out a new loan to waive some of the upfront costs. If they want your business, and they usually do, they will be willing to give you a discount to keep you happy. For this reason, the most suitable mortgage for your needs may not necessarily be exactly what’s advertised online, but perhaps a tailored loan arranged by contacting a lender.

Features

When trying to figure out what the best mortgage looks like for your needs, you should also consider the impact that different features can have on your home loan. For example, choosing a loan with an offset account can assist you in reducing the amount of interest you pay over the life of the loan. The account functions as a transaction account linked to your mortgage, and keeping your spare cash in there will minimise the principal amount you are charged interest on.