Compare low rate home loans for December

A home loan with a low interest rate could be the most effective way to keep your monthly mortgage repayments down and your long-term costs as low as possible. Start comparing now!

JP Pelosi
Managing editor
Evlin DuBose
Senior Money Writer
Fact Checked
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 426 home loans using the filters.
Last updated 13 December 2024 Important disclosures and comparison rate warning*
What are your home loan needs?

Your loan-to-value ratio (LVR): 50%

Loan amount and LVR will affect interest rates.

  • Promoted

    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.

  • Promoted

    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.

  • Promoted

    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.

  • Promoted

    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.

  • Promoted

    Optimum Fixed Rate Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <80%
    Interest rate
    5.89 % p.a.
    Fixed 1 year
    Comparison rate
    6.30 % p.a.
    Initial monthly repayment
    $2,867
    Go to site

    Lock in a competitive fixed interest rate and enjoy peace of mind for the fixed period with SWS Bank’s Optimum Fixed Rate Home Loan.There are no application, ongoing or banking fees to pay and first home buyers and refinancers can apply with a speedy online application. Get the flexibility of loan split options and redraw facility. No offset account available for fixed rate proportion of loan. Other fees may be applicable. T&Cs apply.

  • Optimum Fixed Rate Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <80%
    Interest rate
    5.89 % p.a.
    Fixed 1 year
    Comparison rate
    6.30 % p.a.
    Initial monthly repayment
    $2,867
    Go to site

    Lock in a competitive fixed interest rate and enjoy peace of mind for the fixed period with SWS Bank’s Optimum Fixed Rate Home Loan.There are no application, ongoing or banking fees to pay and first home buyers and refinancers can apply with a speedy online application. Get the flexibility of loan split options and redraw facility. No offset account available for fixed rate proportion of loan. Other fees may be applicable. T&Cs apply.

  • Fixed Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <95%
    Interest rate
    5.69 % p.a.
    Fixed 2 years
    Comparison rate
    6.34 % p.a.
    Initial monthly repayment
    $2,899
    Go to site

    Get the security of a competitive fixed rate home loan for 2 years with IMB. Get up to $4,000 cashback (T&Cs apply). Up to 12 months repayments in advance without penalties. Free Internet and Mobile Banking redraws (T&Cs apply). Up to a 30 year loan term. Split loan available. No offset account.

  • Flex Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    5.79 % p.a.
    Fixed 2 years
    Comparison rate
    6.27 % p.a.
    Initial monthly repayment
    $2,931
    Go to site

    Competitive Fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.

  • 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.

  • Flex Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.33 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    Competitive variable rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.

Showing 8 results from 426 home loans. Use the filters to see more
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Knowledge Hub

Finding the lowest rate home loan for your needs

Every home loan is different, and so are home loan interest rates. The rate you get with your mortgage is going to play a major role in determining how much you pay over the life of the loan.

That’s why, when it comes to comparing home loans, finding the lowest home loan interest rate possible will be right at the top of the priority list for many borrowers.

After all, if you can find a way to reduce the interest on your mortgage repayments, why wouldn’t you? 

Woman gasping at low home loan interest rate

Factors that influence your home loan rate 

Not every borrower is can snag the lowest home loan rate on the market, because there are a number of factors that banks and other lenders take into account when determining their rates.

Some of these include: 

  • Borrower type. Investors usually get higher rates than owner-occupiers. 
  • Repayment type. Principal & interest loans tend to have lower rates than interest-only loans. 
  • Interest rate type. Fixed vs variable rates can be higher or lower, depending on the loan. 
  • Loan-to-value ratio (LVR). Your LVR, i.e. the size of your deposit or your home equity, can affect your rate. Higher LVRs get higher rates, and vice versa. 

There are low rate home loans available for various types of borrowers. The key to finding them is to compare. 

Woman thinking about low home loan interest rates in Australia

What is a low-interest rate for a home loan in Australia?

Interest rates have changed a lot over the decades. In the 1980s they used to be over 15%! Nowadays, most home loans range from 5% to 7%, depending on the year. 

Interest rates reached a historic nadir in 2020-2022 due to pandemic-era economic stimulus policies. 

However, home loan interest rates have been rising recently thanks to a series of hikes made by the Reserve Bank of Australia. 

If you’re interested in keeping up to date with some of the latest home loan offers, it’s worth regularly checking in on the rates on this page, or visiting our other dedicated home loan pages for variable rates, fixed rates, refinancers and investors.

What types of home loans have low interest rates?

Different types of home loans come with higher and lower interest rates. This is largely a matter of risk (as calculated by lenders), which is why ‘less risky’ loans tend to come with lower rates. 

Interest rates differ from one lender to the next, but there are some broad generalisations that hold true between different types of home loans. Here are a few examples.

Owner occupiers vs investors 

On average, lenders offer lower rates to owner-occupiers than they do to investors because property investors are generally considered riskier. 

That’s not to say that there aren’t low home loan rates available to investors, but they may not be eligible for some of the very sharpest rates around.  

Principal and interest vs interest-only

Many mortgage lenders offer customers the choice between making principal and interest or interest-only repayments.

Some borrowers, particularly investors, elect to go interest-only on their loans for a limited amount of time (generally up to 5 years), as it’s a way to initially make lower repayments. 

However, interest-only home loans tend to come with higher interest rates than principal and interest home loans because interest-only borrowers are deemed to be at a higher risk of defaulting. 

High deposit vs low deposit 

The loan-to-value ratio (LVR) is a major factor in determining your interest rate. In short, LVR is the amount you’re borrowing versus the value of the property, which is then used to calculate your risk as a borrower. 

LVR (%) = Loan value / property value

Generally speaking, the more security you have in your home, the safer you're deemed to be. So, if your LVR is lower than 80% (either by having a large deposit or built up equity), you will often have access to lower rates.

On the flip side, low deposit home loans tend to come with higher rates. 

Fixed rates vs variable rates

You'll need to decide whether you want to lock in a fixed rate for a few years or go with a variable rate. There are positives and negatives for each option, including the features and loan flexibility on offer, but you’ll also need to weigh up the rates on offer. 

For instance, fixed rates shield you from rate hikes, but they also trap you out of savings if interest rates get cut.

At present though there’s not too much difference between some of the lowest home loan rates available on both fixed rate and variable rate loans, which means there’s plenty of choice.

What other things to consider besides a low interest rate home loan

Nabbing a low interest home loan is the major priority for many borrowers, but it won’t be the only consideration. There are plenty of other factors to weigh up in a home loan, too, such as:

Woman pointing to piggy bank
Woman thinking about low home loan rates

What will I need to qualify for the lowest interest rate?

Lenders take many factors into account when it comes to the rates they offer.

But whether you’re an owner occupier, investor, refinancer or first home buyer, there are some of the minimum requirements you’ll typically need to meet to get a low rate home loan: 

  • Have an LVR below 80%. Low LVRs get lower interest rate.
  • Make principal and interest repayments. Interest-only loans come with higher interest rates. 
  • Opt for a basic loan. Many packaged home loan options come with competitive interest rates, but "basic" loans tend to have the lowest home loan interest rates.

Which lenders offer the lowest rates?

In Australia the home loan market is dominated by the Big Four banks: ANZ, Commonwealth Bank, NAB, and Westpac.

While these major players have the most customers, they often don’t provide the lowest home loan interest rates around. So who does? 

If you are on the hunt for a sharper rate, comparing loans from a range of different lenders is a clever move. Some kinds of lenders to consider include:

  • Challenger banks. While not as large as Australia’s four major players, larger ‘challenger’ banks like BOQ, HSBC, ING, Macquarie and Suncorp often have many of the benefits of the big four (like big customer service operations or apps and online platforms) while also offering competitive mortgage rates. 
  • Credit unions and mutual banks. Australia is home to a large number of customer-owned banks, mutuals and credit unions, including the likes of Bank Australia, Great Southern Bank and Newcastle Permanent. In addition to their community and customer focus, these lenders often offer sharp rates with their home loans. 
  • Online lenders. If there’s one group of lenders synonymous with low rate home loans it’s online lenders. Because they predominantly operate online without the normal overheads of a bank, online lenders like Ubank, Athena, Unloan, Up, and loans.com.au.

Low rate home loan FAQs

What is a comparison rate?

Comparison rates are designed to provide borrowers with a better reflection of the true cost of the loan. That’s because the comparison rate not only takes into account the advertised or ‘headline’ interest rate, but also things like fees and charges plus the amount being borrowed, the loan term and the repayment frequency. 

What is an introductory home loan rate?

Some lenders offer variable rate home loans that come with an introductory rate, generally for 1 or 2 years. Introductory rates tend to be quite competitive as they’re used by lenders to draw in customers, but it’s always worth weighing any intro rate up against the ongoing variable rate attached to the loan. 

Is the lowest home loan rate always the cheapest?

In short, not always.

While finding a low home loan rate is a great starting point to reducing the amount you pay on your mortgage, you’ll also need to consider any ongoing or one-off fees that come with the loan as well as the revert rate (if it’s a fixed loan).

That’s because these costs will also contribute to the overall amount you'll earn, which is why it’s always worth looking at the comparison rate as well as the headline interest rate. 

Do banks have to pass on RBA rate cuts?

While home loan interest rates do tend to move in tandem with the Reserve Bank’s official cash rate, it’s a common misconception that mortgage lenders need to pass on any RBA rate cut in full to their customers.  

How can I calculate my home loan repayments?

Before you purchase a property you’ll want to know how much you’ll need to budget for in the way of home loan repayments.

Our home loan repayments calculator can help you work out how much your regular repayments will be and how much total interest you’ll end up paying on your loan. All you’ll need to do is plug in your loan amount, loan term and your interest rate to get started!

What grants and schemes are available to first home buyers?

If you're purchasing a property for the first time you may be eligible for a number of first home owner grants and deposit schemes in Australia.

These include the various state-based first home owners grants, as well as the First Home Loan Deposit Scheme, the First Home Super Saver Scheme and the Family Home Guarantee. 

Can I borrow with a 5% deposit?

Yes! In order to access some of the lowest home loan interest rates around borrowers will typically need a deposit of at least 20%, but that doesn’t mean that there aren’t plenty of low deposit home loans available to those with deposits as low as 10% or even 5%.

Bear in mind is that lenders mortgage insurance (LMI) may be required of anyone with a deposit under 20% though. 

What are the best home loans?

At the end of the day there’s no single best home loan: it all depends on your wants and needs as a borrower. That’s not to say that there aren’t loans which stand out above the pack though.

Every year our expert judges analyse hundreds of Australian home loans as part of our Mozo Experts Choice Awards, naming winners in a range of categories including best Low Cost Home Loans, best First Home Buyers Loans and best Investor Home Loans. 

To find out more, check out our run through of some of the best home loans in Australia or visit the Mozo Experts Choice Home Loan Awards page for a full list of winners and a copy of the award methodology report. 

How can I compare low interest home loans?

If you’re ready to compare a range of low rate home loans on rates, fees, features and more, then a great place to start is our comparison table at the top of this page.

Plug in your loan amount and loan term and you’ll be able to see your initial monthly repayment displayed next to each loan,  or to compare even more loans, head over to our main home loan comparison hub. 

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JP Pelosi
JP Pelosi
RG146
Managing editor

Managing Editor Jean-Paul (JP) Pelosi leads the editorial team, with over 20 years of experience writing for top outlets like The Guardian, The Sydney Morning Herald and News.com.au. JP's expertise in home loans and property is complemented by his rich background at major financial firms including CommBank, Suncorp and Amex. Holding a Master's in Communications and international experience in journalism, JP combines passion with skill and has a unique ability to apply this editorial experience and financial knowledge to advise the team on how to create engaging financial content for Australian consumers.

Evlin DuBose
Evlin DuBose
RG146
Senior Money Writer

Evlin is RG146 certified for Generic Knowledge 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.

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

Home loan customer reviews

Commonwealth Bank Home Loan
Overall 6/10
Commonwealth Bank Home loan Review

I’ve been using Commonwealth Bank for my home loan, and overall, it’s been a positive experience. One of the standout features is their exceptional customer service. They were incredibly helpful in structuring our loan for a removal house, which was more complex than a standard loan. The team took the time to guide us through the process and ensure we understood all the details, which made the whole experience much smoother. Additionally, their online and phone services are user-friendly and convenient, making it easy to manage our account and stay on top of things. However, one downside is that compared to other banks I’ve seen, Commonwealth Bank doesn’t offer many benefits or advantages to help with the cost of living. While their home loan services are great, there aren’t many extra perks that could make day-to-day banking more rewarding. Overall, I’m happy with their service but feel room for improvement exists.

Read full review

I’ve been using Commonwealth Bank for my home loan, and overall, it’s been a positive experience. One of the standout features is their exceptional customer service. They were incredibly helpful in structuring our loan for a removal house, which was more complex than a standard loan. The team took the time to guide us through the process and ensure we understood all the details, which made the whole experience much smoother. Additionally, their online and phone services are user-friendly and convenient, making it easy to manage our account and stay on top of things. However, one downside is that compared to other banks I’ve seen, Commonwealth Bank doesn’t offer many benefits or advantages to help with the cost of living. While their home loan services are great, there aren’t many extra perks that could make day-to-day banking more rewarding. Overall, I’m happy with their service but feel room for improvement exists.

Price
3/10
Features
6/10
Customer service
10/10
Convenience
9/10
Trust
7/10
Less
Caitlyn, Queensland, reviewed 2 days ago
Commonwealth Bank Standard Variable Rate (Wealth Package)
Overall 8/10
Meet expectations

They are ok. Similar rates ans perks to other banks. Quick customer service and reliable. Meet expectations.

Read full review

They are ok. Similar rates ans perks to other banks. Quick customer service and reliable. Meet expectations.

Price
7/10
Features
6/10
Customer service
9/10
Convenience
8/10
Trust
8/10
Less
Cass, Victoria, reviewed 2 days ago
St.George Standard Variable Home Loan
Overall 3/10
Would not recommend

There Rates are high and they outrightly refuse to give you a better Rate. The redraw is handy and you can put extra money in to pay down the Loan earlier. The charges are reasonable but due to the high Rates, I would not recommend them to anyone. Loyalty Tax is well and truly alive here.

Read full review

There Rates are high and they outrightly refuse to give you a better Rate. The redraw is handy and you can put extra money in to pay down the Loan earlier. The charges are reasonable but due to the high Rates, I would not recommend them to anyone. Loyalty Tax is well and truly alive here.

Price
2/10
Features
4/10
Customer service
5/10
Convenience
5/10
Trust
2/10
Less
Kevin, Queensland, reviewed 2 days ago

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