Compare home loans for February 2024

Mozo’s home loan comparison tools, calculators, and expert tips are here to help, from your first home loan to your latest investment property. Ready to move in? Compare home loans below.

Fact Checked
Young couple comparing home loans

Look. Learn. Compare.

Home loan comparisons on Mozo - last updated 25 February 2024

Search promoted home loans below or do a full Mozo database search. Important disclosures
image of houses

Need help with refinancing?

You might have questions that need personal answers. We’ve teamed up with the mortgage brokers at Lendi to get you the answers you need, and a home loan deal you deserve.

Learn more

Interest rates change regularly - stay informed.

Compare more home loan options

Home loans come in many shapes and sizes, start comparing here based on your needs. 

Search the Mozo Database

Browse all 463 home loans in Mozo's comparison database

Meet our home loan experts

Our experts track home loan interest rates, product changes and help you stay informed of industry trends. read more

Small rate differences can amount to huge savings so it pays to compare.

Peter Marshall

Home loans & rates expert

Image of camera lens

February Home Loans Monthly Snapshot

The tide is shifting, ever so slightly. For the first time in months, the average home loan interest rate dipped – by 1 basis point. Now, it’s 6.84% p.a. in the Mozo database, instead of 6.85% p.a. We’ll take the victories as they come.

This slow trend is mostly thanks to the Reserve Bank of Australia (RBA) leaving interest rates on hold in February. Their next meeting won’t come until March, and at the moment, things are looking for an extended hold.

So home loans may finally have peaked. Indeed, the way fixed rates are dropping, the peak may have actually passed. Rate cuts, here we come!

For home buyers, an interest rate hold offers stability when comparing properties and home loans. However, it’s important to remember that a large part of your mortgage is your principal (i.e., the original loan amount), so opting for an affordable property is more important than an affordable interest rate.

Currently, the Mozo database average interest rate for variable home loans is 6.84% p.a. (OO, P&I, LVR < 80%). For fixed rate terms on similar loans, the averages are:

  • 1-year: 6.51% p.a.
  • 2-year: 6.41% p.a.
  • 3-year: 6.38% p.a.
  • 4-year: 6.54% p.a.
  • 5-year: 6.59% p.a.

As always, comparison is key to finding the right home loan for you.

 Lowest variable home loan rates in February 2024

At the time of writing, these are some of the cheapest variable interest rate offers from lenders in the Mozo database. 

  • Gateway Bank | 5.79% p.a. (6.07% p.a. comparison rate*)
  • Police Bank | 5.84% p.a. (5.92% p.a. comparison rate*)
  • Homeloans360 | 5.89% p.a. (5.89% p.a. comparison rate*)
  • Pacific Mortgage Group| 5.89% p.a. (5.89% p.a. comparison rate*)

Rates are for a $400,000 loan (OO, P&I, LVR < 80%).

Home Loans Knowledge Hub

How to choose the right home loan for you

Every buyer is different, so no single home loan is best for everyone. Instead, choosing the right home loan is about matching your property aims and budget.

In general, the best home loan will:

  • Lend you enough money to buy the property you want. (See borrowing power). 
  • Come with useful features that save you money and time. 
  • Have a low interest rate compared to similar home loans.

Once you choose the right home loan, all you have to do is check the eligibility criteria, prepare your finances, and apply. 

Person excited about choosing the right home loan for them

Why compare?

Home loans help millions of Australians get on the property ladder. Comparing mortages can help you save costs.

Comparing types of home loans

The type of home loan you choose will depend on your budget and plans. The two main types of home loans are:

  • Owner-occupier. You plan to live in the property as a home.
  • Investor. You do not plan to live in the property.

Owner-occupied and investment home loans also vary by features and repayment types (principal & interest vs. interest-only). Buyers should choose a home loan that serves their goals.

Related content: 

Features to compare in a home loan

Home loan features impact your long and short-term costs. Comparing home loan features lets you see which could fit your needs and budget.

Interest rate

An interest rate is a lending fee charged on your mortgage repayments

The three main types of home loan interest rates are: 

  • Fixed interest rates. Your rate stays the same for a period of time, called a fixed term.
  • Variable interest rates. Your rate changes at the lender’s discretion. 
  • Split loan interest rates. Your rate is a mixture of fixed and variable interest.

Each interest rate type has pros and cons to compare.

Calculator interest rate
Piggy bank deposit size

Deposit size

A home loan deposit is a downpayment you give the lender to use as security. 

The deposit also establishes your loan-to-value ratio (LVR) and home equity.

Usually, large deposits give you lower interest rates. A standard deposit size is 20% of the property's purchase price.

Other home loan features

Many home loans come with features that help save you money, too, such as:

  • Offset accounts. An offset account is a savings account attached to your home loan that lowers your interest. 
  • Free extra repayments. Making extra repayments reduces the size of your home loan, saving you time and money.
  • Redraw facilities. A home loan redraw lets you take back extra repayments you made.

Expert tip: Features like offset accounts and free extra repayments are more common with variable home loans.

Woman excited about other home loan features

Why compare home loans

Here at Mozo, we believe comparison makes your money count for more. For most Australians, taking out a home loan is a necessary but expensive step to purchasing a dream home. 

So how can buyers save time and money? Compare!

Home loans vary in cost and features. Comparing home loans lets you see which offers suit you best. After all, spotting the right home loan is easier if you’ve spot-checked plenty of others.

Rates and fees

Compare rates & fees

How much could you save by switching home loans? Comparing rates and fees lets you see your money in action.

Features

Compare features

Home loan features act as money-saving tools. Comparing home loans shows which give you more value.

Lenders

Compare lenders

Which lenders have great track records? Comparing lenders tells you who’s here to help.

Best home loans

What are the best home loans? That’s tricky, but Mozo’s Experts Choice Awards are a great place to start. 

Every year, Mozo’s expert judges compare hundreds of home loan offers to find the best value, quality, features, rates, fees, and more. 

Only the top 10% of home loans get an award – and we look at hundreds of deals from 99 lenders.

Check out the winners at the 2024 Mozo Experts Choice Home Loan Awards page, or click below. 

For more top deals, including editor picks, head to our best home loans hub.

Mozo Experts Choice Home Loans Awards Badge 2024

Home loan basics

What is a home loan?

A home loan is money borrowed from a bank or a lender to buy property. The debt is repaid in instalments, called mortgage repayments, with interest, over 20 to 30 years.

What is the typical length of a mortgage?

Mortgages are usually repaid over a 20 to 30-year period. This period of time is called the “loan term”. The standard loan term in Australia is  25 years, though some can go as long as 40 years.

What type of home loan do I need?

Different types of home loans suit different types of buyers. First home buyers should look for first home loans with lower interest rates, while investors should use investment home loans. See our home loan types guide for more information.

What’s the difference between a mortgage vs. home loan?

A home loan is a financial product sold by a bank or lender. A mortgage is a home loan that’s in progress, meaning the borrower is already making repayments.

Comparing home loans

Comparing home loan rates: Should I pick a fixed or variable rate?

Home loan interest rates come in a few varieties. Fixed interest rates stay the same for a fixed term (usually 1-5 years), while variable interest rates can change at the lender’s discretion. 

Each type of interest rate has pros and cons. Fixed rates give borrowers consistent repayments for a time, but variable home loans have greater features and flexibility. Compare fixed vs. variable home loans in our guide.

What home loan features are available in Australia?

Five main home loan features are available in Australia: offset accounts, flexible repayments, extra repayments, redraw facilities, and split loan interest rates.

What is a comparison rate?

A comparison rate is an interest rate that includes any charges like lending fees. A comparison rate is a more accurate estimation of how much a home loan costs over time.

How do I choose the best home loan?

The best home loan for you will depend on your needs, preferences, and budget, so it’s vital to compare options to see what could work.

Many home loan lenders have won awards for their incredible offers. Check out Mozo’s top picks at our best home loans hub.

Applying for a home loan

How do I apply for a home loan?

To apply for a home loan, assemble your paperwork, choose a property to buy, and compare lenders to find the right home loan for you. 

When your documents are in order, fill out the home loan application form, pay any applicable fees, and submit your application.

What home loan paperwork do I need?

The home loan paperwork you need to have includes:

  • Three months of bank statements (to show your income, spending habits, and living costs).
  • Employment records.
  • Debts and assets.
  • Primary and secondary identity documents like passports and driver’s licences
  • Details on the property you intend to buy, if relevant.
How long does it take to apply for a home loan?

How long it takes to apply for a home loan varies. Lodging the application itself could take anywhere from a few minutes to a few hours, depending on the application and lender. 

It will also depend on how prepared you are. Your paperwork and information must be ready to apply, including at least three months of consistent income, spending, and savings. Preparation to apply could take weeks or months.

Picture of evlin-dubose

Evlin DuBose

RG146
Senior Money Writer

Evlin is RG146 certified for general advice (Tier 2) and has become a leading voice in finance news since joining Mozo two years ago. She is regularly featured in Google's Top Stories alongside major publications like News.com.au and Yahoo Finance, and seasoned journalists. Despite being in the industry for just two years, she is Mozo's go-to writer for all things RBA and her research has been referenced by the Victorian Government. With a Bachelor of Communications degree from UTS, where she won the Dean's Merit Award and acted as the Director of Student Publications.

Picture of jp-pelosi

JP Pelosi

RG146
Managing editor

Jean-Paul (JP) Pelosi is an experienced journalist and editor who has contributed to many of Australia's leading media outlets including The Guardian, News.com.au, Domain.com.au, Investment Magazine and ANZ's Bluenotes. He has also edited news and communications for large financial services companies such as CommBank, Suncorp, Allianz and Amex. He likes a well told story and applying his editorial experience to content that readers both care about and enjoy. JP heads up our writing team.

Brands we compare

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

Home loan customer reviews

Westpac Home Loan
Overall 1/10
Avoid Westpac at all costs

Westpac have proven to be completely incompetent, lied and their customer service is as poor as I've ever experienced. Even a complaint direct to the Managing Director proved a total waste of effort, as she never had the courtesy to even respond. Australia's worst bank.

Read full review

Westpac have proven to be completely incompetent, lied and their customer service is as poor as I've ever experienced. Even a complaint direct to the Managing Director proved a total waste of effort, as she never had the courtesy to even respond. Australia's worst bank.

Price
2/10
Features
3/10
Customer service
1/10
Convenience
7/10
Trust
1/10
Less
Ian, Victoria, reviewed 5 days ago
Macquarie Offset Home Loan (Package)
Overall 10/10
Great service and comparable rates

We have been with Macquarie for over a year and a half. We have our mortgage with them and combined offset bank accounts. They are very competitive in terms of their interest rate. They have great customer service and good services. We like the fact that we can have up to 7 separate offset accounts which we use to put separate savings aside for. We haven’t had any issues however I know their customer service is great.

Read full review

We have been with Macquarie for over a year and a half. We have our mortgage with them and combined offset bank accounts. They are very competitive in terms of their interest rate. They have great customer service and good services. We like the fact that we can have up to 7 separate offset accounts which we use to put separate savings aside for. We haven’t had any issues however I know their customer service is great.

Price
10/10
Features
10/10
Customer service
10/10
Convenience
10/10
Trust
10/10
Less
Tanya, Western Australia, reviewed 5 days ago
Westpac Rocket Repay Home Loan
Overall 10/10
Where else but Westpac..

Was going to leave the bank for better rates. Retention office made contact with us and provided interest rates much lower than all other banks. Now, I make contact annually direct to the retention office to try and get a better deal. Easy to deal with, contact was immediate by either phone or email. Initial set up of homeloan in branch was easy and Westpac employee was extremely helpful and genuinely wanting to help.

Read full review

Was going to leave the bank for better rates. Retention office made contact with us and provided interest rates much lower than all other banks. Now, I make contact annually direct to the retention office to try and get a better deal. Easy to deal with, contact was immediate by either phone or email. Initial set up of homeloan in branch was easy and Westpac employee was extremely helpful and genuinely wanting to help.

Price
10/10
Features
10/10
Customer service
10/10
Convenience
10/10
Trust
10/10
Less
Renee, Victoria, reviewed 5 days ago

More home loan reviews