Expert advice on home loan tips (and traps)


As Australians rush to get into the property market and take advantage of the low interest rates currently on offer, it’s hardly a surprise that new home loans are being taken out at record levels.

But hold on a moment, because we’re not talking about a small loan here - we’re likely talking about a loan in the six figures that you’ll be paying off over multiple decades! That’s why a bit of research and some extra knowhow could really pay off.

So whether you’re a first home buyer, a budding investor or an existing home owner looking to refinance, here are a few tips and traps from the Mozo experts you’ll want to keep in mind when you’re comparing home loans.

Expert home loan tips

1. Take advantage of low rates: Home loan rates are currently at some of their lowest points in years, but not all lenders are offering the same deals. To score a super low rate, you may need to look beyond the major banks to an online lender or challenger bank.

2. Make the most of features: Many loans come with features like offset accounts, redraw facilities and extra repayments. If you like the idea of paying off your loan faster, reducing the interest you pay or just having some extra flexibility, these features may be worth utilising.

3. Weigh up a fixed vs variable rate: Looking for repayment certainty? A fixed home loan which allows you to lock in a rate for several years may be ideal. Conversely, a variable rate may give you added flexibility and a more extensive range of features. Otherwise for the best of both worlds, many lenders allow you to split your loan into fixed and variable portions.

Home loan traps to avoid

1. Beware revert rates: Plenty of borrowers are locking in fixed rates while they’re low, but one thing to watch out for is the revert rate you’ll pay after the fixed period. These are often far higher, so it may be worth comparing your options before the fixed period ends or renegotiating with your lender.

2. Watch out for ongoing fees: Most lenders charge one-off upfront or discharge fees, but there are also ongoing costs like annual services fees which can really add up over time. That’s why comparison rates (which take rates and fees into account) are a handy guide.

3. Loyalty doesn’t pay: If you’re aiming to keep your rate as low as possible, loyalty to your lender is unlikely to be your best tactic. Many lenders don’t pass on their best rates to existing customers, which means your rate could get less competitive over time. So make sure you regularly review your offer and, if you’re not happy, don’t be afraid to switch!

Compare home loans - last updated 13 August 2022

Search promoted home loans below or do a full Mozo database search . Advertiser disclosure
  • Variable Home Loan 70

    interest rate
    comparison rate
    Initial monthly repayment
    3.10% p.a. variable
    3.12% p.a.

    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 30% deposit required.

  • Unloan Variable

    Owner Occupier, Refinance Only

    interest rate
    comparison rate
    Initial monthly repayment
    3.14% p.a. variable
    3.06% p.a.

    For refinancers only. 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 in as little as 10 minutes.

  • PAYG Home Loan

    Owner Occupier, Principal & Interest, LVR<80%

    interest rate
    comparison rate
    Initial monthly repayment
    3.29% p.a. variable
    3.33% p.a.

    Low variable rate. Ideal for new home buyers or refinancers. Unlimited additional repayments. Unlimited free redraw. Application completely online. Optional 100% offset can be added for $120 p.a.. 20% deposit required.

  • Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    3.79% p.a. variable
    3.79% p.a.

    Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required.


* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate, loan amount and term entered. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

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