Compare home loans for December

Buying a new home, refinancing, or investing? Find the best home loan for you by comparing 427 home loans from 96 Australian lenders here on Mozo.

Jack Dona
Money writer
Fact Checked

Did you know?

For the week of 2 December 2024, the average owner-occupier variable home loan rate in our database is 6.74% p.a., while the best rate is 5.85% p.a. (6.13% p.a. comparison rate*) for borrowers with 80% LVR. That’s an annual saving of $3,480 on a $500k mortgage over 30 years.

Mozo may receive payment if you click products on our site. We don’t compare the entire market, but you can search our database of 427 home loans using the filters.
Last updated 4 December 2024 Important disclosures and comparison rate warning*

Home loan comparisons on Mozo

Promoted

  • Offset Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR <70%
    Interest rate
    5.69 % p.a.
    Fixed 4 years
    Comparison rate
    6.23 % p.a.
    Initial monthly repayment
    $2,899
    Go to site

    Convenient offset account. No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $10,000,000.

  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

  • Variable Home Loan 90

    • Principal and Interest
    • LVR <90%
    Interest rate
    6.04 % p.a.
    Variable
    Comparison rate
    6.06 % p.a.
    Initial monthly repayment
    $3,011
    Go to site

    Affordable home loan rate for buyers or refinancers. No monthly or ongoing fees. Option to add an offset for 0.10%. Access to savings with unlimited redraws available. Minimum 10% deposit required.

  • Budget Home Loan

    • LVR <80%
    • Owner Occupier
    • Principal & Interest
    Interest rate
    6.04 % p.a.
    Variable
    Comparison rate
    6.07 % p.a.
    Initial monthly repayment
    $3,011
    Go to site

    Enjoy a discounted variable home loan from IMB. Get up to $4,000 cashback (T&Cs apply). Life-of-loan discount off IMB’s standard variable interest rate. Unrestricted additional repayments. Free Internet and Mobile Banking redraws (T&Cs apply). No monthly fees to pay. Up to a 30 year loan term. Split loan available. No offset account.

  • Neat Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.11 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.

  • Basic Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.

  • Basic Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR<70%
    Interest rate
    5.69 % p.a.
    Fixed 5 years
    Comparison rate
    5.97 % p.a.
    Initial monthly repayment
    $2,899
    Go to site

    No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $10,000,000.

  • Clean Energy Home Loan Eco Plus

    • Owner Occupier
    • LVR<90%
    Interest rate
    5.34 % p.a.
    Fixed 3 years
    Comparison rate
    6.05 % p.a.
    Initial monthly repayment
    $2,789
    Link not supplied

  • First Home Buyer Fixed Rate Loan

    • <80% LVR
    • Principal & Interest
    Interest rate
    5.39 % p.a.
    Fixed 3 years
    Comparison rate
    6.19 % p.a.
    Initial monthly repayment
    $2,805
    Link not supplied

  • Clean Energy Home Loan Eco/ Eco Upgrade

    • Owner Occupier
    • LVR<90%
    Interest rate
    5.44 % p.a.
    Fixed 3 years
    Comparison rate
    6.15 % p.a.
    Initial monthly repayment
    $2,820
    Link not supplied

  • Fixed Rate Home Loan

    • Owner Occupier
    Interest rate
    5.49 % p.a.
    Fixed 2 years
    Comparison rate
    6.03 % p.a.
    Initial monthly repayment
    $2,836
    Link not supplied

  • Fixed Rate Home Loan

    • LVR <80%
    • Owner Occupier
    • Principal & Interest
    Interest rate
    5.49 % p.a.
    Fixed 5 years
    Comparison rate
    6.14 % p.a.
    Initial monthly repayment
    $2,836
    Link not supplied

  • Fixed Rate Home Loan

    • Owner Occupier
    Interest rate
    5.49 % p.a.
    Fixed 3 years
    Comparison rate
    6.24 % p.a.
    Initial monthly repayment
    $2,836
    Link not supplied

  • 3 Year Accelerator Fixed Home Loan

    • Owner Occupier
    Interest rate
    5.49 % p.a.
    Fixed 3 years
    Comparison rate
    6.26 % p.a.
    Initial monthly repayment
    $2,836
    Link not supplied

  • Dream Value Fixed Home Loan

    Interest rate
    5.49 % p.a.
    Fixed 3 years
    Comparison rate
    6.48 % p.a.
    Initial monthly repayment
    $2,836
    Link not supplied

  • Special Fixed Rate Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <80%
    Interest rate
    5.49 % p.a.
    Fixed 3 years
    Comparison rate
    7.46 % p.a.
    Initial monthly repayment
    $2,836
    Link not supplied

  • First Home Buyers 2 Year Fixed Rate

    • Special Offer
    Interest rate
    5.49 % p.a.
    Fixed 2 years
    Comparison rate
    6.29 % p.a.
    Initial monthly repayment
    $2,836
    Link not supplied

  • 2 Year Fixed Home Loan

    • Principal & Interest
    Interest rate
    5.49 % p.a.
    Fixed 2 years
    Comparison rate
    6.02 % p.a.
    Initial monthly repayment
    $2,836
    Link not supplied

  • Fixed Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    5.53 % p.a.
    Fixed 3 years
    Comparison rate
    7.34 % p.a.
    Initial monthly repayment
    $2,848
    Link not supplied

  • Fixed Home Loan

    • Owner Occupier
    • Principal & Interest
    Interest rate
    5.54 % p.a.
    Fixed 2 years
    Comparison rate
    5.95 % p.a.
    Initial monthly repayment
    $2,852
    Link not supplied

  • Fixed Home Loan

    • Owner Occupier
    • Principal and Interest
    Interest rate
    5.54 % p.a.
    Fixed 2 years
    Comparison rate
    5.97 % p.a.
    Initial monthly repayment
    $2,852
    Link not supplied

  • Fixed Express Home Loan

    • Owner Occupier
    • Principal & Interest
    Interest rate
    5.54 % p.a.
    Fixed 2 years
    Comparison rate
    6.11 % p.a.
    Initial monthly repayment
    $2,852
    Link not supplied

  • Complete Home Loan

    • Owner Occupier
    • Principal & Interest
    Interest rate
    5.54 % p.a.
    Fixed 2 years
    Comparison rate
    6.32 % p.a.
    Initial monthly repayment
    $2,852
    Link not supplied

  • 3 Year Fixed Rate Home Loan Special Offer

    • Owner Occupier
    • Principal & Interest
    • LVR <80%
    Interest rate
    5.54 % p.a.
    Fixed 3 years
    Comparison rate
    6.63 % p.a.
    Initial monthly repayment
    $2,852
    Link not supplied

  • First Home Buyer Fixed Rate

    • Owner Occupier
    • Principal & Interest
    Interest rate
    5.54 % p.a.
    Fixed 3 years
    Comparison rate
    6.82 % p.a.
    Initial monthly repayment
    $2,852
    Link not supplied

  • 2 Year Fixed Home Loan Special Offe

    • Owner Occupier
    • Principal & Interest
    • LVR<60%
    Interest rate
    5.54 % p.a.
    Fixed 2 years
    Comparison rate
    6.36 % p.a.
    Initial monthly repayment
    $2,852
    Link not supplied

  • Home Fixed Rate

    • Owner Occupier
    • Principal & Interest
    Interest rate
    5.55 % p.a.
    Fixed 2 years
    Comparison rate
    5.91 % p.a.
    Initial monthly repayment
    $2,855
    Link not supplied

  • myBlue Fixed Rate Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    5.59 % p.a.
    Fixed 3 years
    Comparison rate
    5.95 % p.a.
    Initial monthly repayment
    $2,867
    Link not supplied

  • Police Value Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    5.59 % p.a.
    Fixed 3 years
    Comparison rate
    6.14 % p.a.
    Initial monthly repayment
    $2,867
    Link not supplied

  • Goldrate Home Loan

    • Fixed
    • Principal & Interest
    • LVR <60%
    Interest rate
    5.59 % p.a.
    Fixed 3 years
    Comparison rate
    6.21 % p.a.
    Initial monthly repayment
    $2,867
    Link not supplied

Showing 30 of 427 home loans
image of houses

Want free expert advice on your home loan?

Whether you're looking to purchase a new home or refinance your existing loan, our friends at Aussie can help!

Learn more

Interest rates change regularly - stay informed.

Subscribe to Newsletter

Why compare home loans with Mozo?

About us

Meet our home loan experts

Mozo’s team of home loan experts include data analysts, finance journalists and compliance professionals. Meet the team

Image of camera lens

December home loans snapshot

Updated by: Jack Dona, Senior Home Loans Writer, 01 December 2024

Australian home loan borrowers continue to wait with bated breath for inflation to ease, signalling the Reserve Bank of Australia (RBA) to provide some rate-relief. 

Inflation remains sticky – no home loan interest rate cuts in sight

High inflation led to the RBA increasing the official cash rate from 0.10% in April 2022 to 4.35% in November 2023, where it has stayed for over a year. This has pushed home loan interest rates up. 

The latest Consumer Price Index (CPI) data – a measure of Australia’s inflation rate – recorded trimmed mean inflation at 3.5% in the 12 months to October 2024. This is an increase from the previous month (3.2%) and close to where it was in August 2024. 

This means it is unlikely the RBA will be willing to cut interest rates this year. We may not even see a rate cut in February 2025, as was previously forecast. 

Comparison is key to finding low home loan rates 

With so many lenders to choose from, it can be difficult to find a low rate home loan that works for you. Whether you’re buying a new property, refinancing, or investing, compare home loans to make sure you’re getting the most competitive rate you can.

To get you started, we’ve curated a list of the lowest home loan rates that the Mozo database could find.  

Best home loan rates in December 2024 

As at 1 December 2024, the lowest home loan rates for an owner-occupier with <80% LVR, making principal and interest repayments over 25 years on a $400,000 home loan, according to the Mozo database, are:

Variable rates

  • Gateway Bank Green Plus Home Loan (Package) | 5.85% p.a. (6.13% p.a. comparison rate*) 
  • Homeloans360 Owner Variable Home Loan | 5.89% p.a. (5.89% p.a. comparison rate*)
  • Pacific Mortgage Group Standard Variable Home Loan | 5.89% p.a. (5.89% p.a. comparison rate*)
  • Police Credit Union Low Rate Home Loan Special Offer | 5.89% p.a. (5.95% p.a. comparison rate*).
  • The Mutual Bank Special Budget Home Loan | 5.89% p.a. (5.90% p.a. comparison rate*). 

Fixed rates 

  • 1 year: Community First Bank Accelerator Fixed Home Loan | 5.74% p.a. (6.39% p.a. comparison rate*) 
  • 2 years: BankVic Fixed Rate Home Loan | 5.49% p.a. (6.03% p.a. comparison rate*)
  • 3 years: Bank Australia Clean Energy Home Loan Eco Plus | 5.34% p.a. (6.05% p.a. comparison rate*) 
  • 4 years: People's Choice Fixed Rate Home Loan | 5.49% p.a. (6.17% p.a. comparison rate*)
  • 5 years: Heritage Bank Fixed Loan | 5.49% p.a. (7.42% p.a. comparison rate*).

If you like the sound of consistent repayments, make sure you compare fixed rate home loans to see more options.

Home loan knowledge hub

Why understanding home loan rates matters  

Small interest rate differences can amount to huge savings over time.

The graph below illustrates how lower rates can translate to interest savings, using the example of an $800,000 mortgage, with a 25-year term. 

At 6.50% p.a., you would end up paying $820,497 in interest alone. In other words, you'd pay back your principal loan amount of $800,000 and pay an additional $820,497 in interest – that's over $1.6 million all up. 

Comparing the 6.00% and 6.50% interest rate examples above, a difference of just 0.50% could save you almost $250 per month, or over $74,000 over the span of 25 years.

Big Four vs alternative lenders

In Australia, home loans are available from a wide range of lenders including the Big Four, customer-owned banks, credit unions and non-bank lenders.

The Big Four banks (ANZ, CommBank, NAB, and Westpac) however dominate the home loan market. Despite their popularity, Big Four home loans tend to have higher rates than the competition.

Compared to the average variable rate in the Mozo database, a borrower with an $800,000 home loan could spend an extra $225 per month, or over $67,000 over 25 years with a Big Four, as illustrated below. This is why it’s important to shop around and compare home loans before you commit to any one lender. 

Type
Average interest rate
Monthly repayment
Total repayment (25 years)
Big Four variable 
7.15% p.a.
$5,731
$919,304
All variable rates
6.74% p.a. 
$5,522
$856,672
Source: Mozo database, 1 December 2024. Interest rates based on a $400,000 owner-occupier variable home loan, with principal and interest repayments and <80% LVR over 25 years. Calculations based on a loan of $800,000. 

The RBA’s relationship with home loan rates 

There are several factors that influence home loan rates in Australia. Competition between lenders and inflation are among the culprits, but recently the biggest influence on interest rates has come from the Reserve Bank of Australia (RBA). 

To control inflation, the RBA manipulates the cash rate. When the cash rate is raised, interest rates tend to increase in response. This usually results in less spending by consumers and the eventual easing of inflation. 

Over the past few years, the RBA cash rate has increased by 4.25% and this has pushed up interest rates on home loans as banks and lenders responded. 

In April 2022, the cash rate was at just 0.10%, and the average variable home loan was 3.03% p.a. By November 2023, the cash rate had risen to 4.35%. 

While the RBA hasn’t raised rates since then, the average variable rate has doubled which has put a lot of pressure on mortgage holders. As at 1 December 2024, the average variable home loan rate is now 6.74% p.a. according to the Mozo Database (based on OO, P&I, $400k, <80% LVR loan).

A logo cloud of various Mozo Experts Choice Award winners for the best home loans in 2024

Best of 2024: Award-winning home loans

Each year we conduct a review of all home loans in our database for the Mozo Experts Choice Home Loan Awards.

We run a number of scenarios across 11 categories to find the home loans that deliver the best value for Australian borrowers. Out of 475 home loans from 99 lenders we compared for this year’s awards, here’s some of the award winners: 

To view the full list of winners, click the button below, or read the awards criteria in the methodology report found here.

Popular home loan topics and how-tos

Our expert guides will give you the knowledge you need to manage your mortgage from search to settlement. See all

Latest home loan news

Get the latest on property market trends, interest rates, and lending news from Mozo's expert writers. See all

Lost in the jargon?

Financial jargon can be confusing. Check out our home loan glossary to familiarise yourself with common terms and compare home loans with confidence.

What is a home loan?

A home loan is an amount of money that you borrow to finance the purchase of a property.

How do home loans work?

A home loan works in a similar way to any other loan. You borrow an amount of money to fund the purchase of a property or land and you pay that money back (principal), plus interest, over a period of time.  

There are a range of different factors that determine the repayment amount.

  1. Loan term. In Australia the typical loan term for a mortgage is 25 to 30 years but you can have a loan term for less than this.  
  2. Interest rates: borrowers have a choice between fixed and variable interest rates for home loans or a split home loan where a portion of the loan is fixed and the other portion is variable. Fixed rate loans are usually available for terms between 1-5 years.   
  3. Repayment frequency. The standard home loan repayment is made monthly, but many lenders also offer weekly and fortnightly options.   
  4. Type of repayment. For owner occupier home loans the standard repayment type is principal and interest (P&I). There is also an interest-only (IO) repayment structure, where you only pay back the interest you are charged. This is a popular option for investment loans.  

What are the different types of home loans in Australia?

There are two types of home loans: owner-occupied and investment home loans. 

  • Owner-occupied home loans are for borrowers who intend to live in the home they are buying (in other words, a property occupied by the owner). 
  • Investment home loans are tailored towards property investors who intend to rent out the properties they purchase to tenants. 

Compare more home loan options

Looking to see if you can switch and save, fix your rate, or finance an investment property purchase?

Refinance home loans Fixed-rate home loans Investment home loans First home buyer loans

How much can I borrow for a home loan? 

How much a home loan lender lets you borrow will depend on several factors, including: 

You can use a borrowing power calculator to estimate the amount of money a lender may let you borrow based on your income, your expenses, and other debts you might have. 

Home loan calculators

Crunch the numbers with our range of handy home loan calculators! See all calculators

Rate change calculator icon Home loan rate change calculator Borrowing calculator icon Home loan borrowing calculator Repayment calculator icon Mortgage repayment calculator Stamp duty calculator icon Stamp duty calculator Budget calculator icon Budget calculator See all calculators icon See all calculators

How to compare home loans 

Using a home loan comparison service like Mozo means you can compare a wide variety of options quickly, easily, and for free. 

When you compare home loans, ask yourself the following questions: 

  • Is this interest rate competitive or are there comparable loans with a lower rate?
  • Do I want to fix my interest rate or am I comfortable with a variable rate? 
  • Does this loan charge higher fees than the others on my shortlist? 
  • Is there a monthly fee to use certain features of this home loan (e.g. an offset account)? 
  • Am I getting the features I want with this home loan? 
  • Do I meet the eligibility requirements to get this loan, including minimum deposit or LVR restrictions? 

These questions can help point you in the right direction and make it easier for you to decide on the right home loan for you. 

Home loan basics FAQs

How much deposit will I need for a home loan?

The standard deposit in Australia is 20% of the value of a property. Although, it is possible to buy a home with a deposit of less than 20% by using government schemes, such as the First Home Guarantee scheme, and by opting for a low-deposit home loan. 

How is home loan interest calculated?

The interest on your home loan is calculated daily, based on your outstanding balance. 

Your lender will multiply your loan balance by your interest rate, then divide that number by 365 days to find your daily interest amount. They will then add all of your daily interest charges together for the month, which you will pay for as part of your mortgage repayment. 

If you make weekly or fortnightly payments, it follows that you’ll pay the accumulated daily interest for the week or fortnight.

Read our guide on calculating interest on a loan for more information.

Is home loan interest tax deductible?

Home loan interest is not tax-deductible for owner-occupiers. However, property investors can claim interest as a tax deduction if they have an investment home loan. 

Home loan comparison FAQs

What is an offset account?

An offset account is a transaction account that allows you to reduce how much interest you’re charged. You won’t pay interest on your loan balance equal to the amount of money you hold in your offset account. 

For example, if you have a $500,000 home loan debt and $50,000 in your offset account, your home loan interest will be calculated on just $450,000. 

Read our guide on how offset accounts work for more information.

When should I refinance my home loan?

The right time to refinance will be different for each individual’s circumstance but we recommend that you review home loan offers at least every two years to make sure that your home loan remains competitive. 

If you stand to save money by refinancing, it’s a good idea. This means weighing up the risks and the costs of refinancing compared to sticking with your current home loan, and judging for yourself if it’s the right move. 

Home loan application FAQs

How do I apply for a home loan?

The process of applying for a home loan involves working out how much you can borrow, saving up for a deposit, comparing home loan options, getting pre-approval from a lender, and gathering all of your documents to submit as part of your application.

What is LVR?

LVR stands for loan-to-value ratio. This is the amount you borrow, expressed as a percentage of the value of the property you buy. 

When you first apply for a loan, your LVR is determined by your deposit size. The higher your deposit is, the lower your LVR will be. 

But your LVR can also change over time, as you pay off more of your home loan, or as your property value goes up and down.

What is Lenders Mortgage Insurance?

Lenders Mortgage Insurance (LMI) is an insurance product designed to protect your lender financially if you default on your home loan. You are usually required to pay for LMI if you apply for a home loan with a loan-to-value ratio (LVR) over 80%. This is because borrowers with high LVRs present more risk to the bank.

Will a HECS debt affect getting a home loan?

Having student loan debt won’t stop you from getting a home loan. However, as with any liability you have, a HECS-HELP debt will diminish your borrowing power and mortgage serviceability.

This is because the income you would otherwise have to spend on mortgage repayments is being taken up by your other financial obligations. This is a potential red flag for lenders when assessing if you’re a good fit for their product.

What home loan can I afford

To work out what home loan you can afford, plug your income and expenses into a borrowing power calculator. You’ll get an estimate how much you might be able to borrow from a lender at different interest rates and how much your borrowing power changes by eliminating other expenses.

Jack Dona
Jack Dona
RG146
Money writer

Jack is RG146 Generic Knowledge certified, with a Bachelor of Communications in Creative Writing from UTS, and uses his creative flair to cut through the financial jargon and make home loans, insurance and banking interesting. His reader-first approach to creating content and his passion for financial literacy means he always looks for innovative ways to explain personal finance. Jack's research and explanations have been featured in government publications, and his work is regularly featured alongside major publications in Google's Top Stories for Insurance.

Brands we compare

We compare home loans from the following well-known providers and many more... See more home loan providers

  • IMB Bank brand logo
  • Macquarie brand logo
  • ubank brand logo
  • Unloan brand logo
  • loans.com.au brand logo
  • SWSbank brand logo
  • IMB Bank brand logo
  • Macquarie brand logo
  • ubank brand logo
  • Unloan brand logo
  • loans.com.au brand logo
  • SWSbank brand logo
  • IMB Bank brand logo
  • Macquarie brand logo
  • ubank brand logo
  • Unloan brand logo
  • loans.com.au brand logo
  • SWSbank brand logo
  • IMB Bank brand logo
  • Macquarie brand logo
  • ubank brand logo
  • Unloan brand logo
  • loans.com.au brand logo
  • SWSbank brand logo

Home loan customer reviews

Bank Australia Basic Home Loan
Overall 7/10
better than other banks

I've had positive experiences with Bank Australia since 2022. the process for applying was able to happen in my local branch, staff were really helpful. My only gripe is the app which I have had problems with (but to be honest, that may be a me thing!!!).

Read full review

I've had positive experiences with Bank Australia since 2022. the process for applying was able to happen in my local branch, staff were really helpful. My only gripe is the app which I have had problems with (but to be honest, that may be a me thing!!!).

Price
9/10
Features
9/10
Customer service
9/10
Convenience
5/10
Trust
8/10
Less
Sal, Victoria, reviewed 7 days ago
Bankwest Home Loan
Overall 8/10
A reasonable home loan

Bankwest has a good home loan with reasonable interest rate,

Read full review

Bankwest has a good home loan with reasonable interest rate,

Price
8/10
Features
7/10
Customer service
7/10
Convenience
8/10
Trust
7/10
Less
Robert, Western Australia, reviewed 7 days ago
Macquarie Home Loan
Overall 2/10
Macquarie’s Limited Hours Leave Customers Stranded

Macquarie Bank's service is frustratingly inaccessible. Limited to 9-5, they're unreachable when you need help outside these times. Issues don’t adhere to business hours, and neither should they.

Read full review

Macquarie Bank's service is frustratingly inaccessible. Limited to 9-5, they're unreachable when you need help outside these times. Issues don’t adhere to business hours, and neither should they.

Price
3/10
Features
1/10
Customer service
3/10
Convenience
1/10
Trust
1/10
Less
Fiona, New South Wales, reviewed 7 days ago

More home loan reviews