Your selected home loans
For the week of 28 October 2024, the average owner-occupier variable home loan rate in our database is 6.75% p.a., while the best rate is 5.88% p.a. (6.20% p.a. comparison rate*) for borrowers with 80% LVR. That’s an annual saving of $3,400+ on a $500k mortgage over 30 years.
Competitive fixed rate on up to a 30 year loan term. No application fees to pay. Additional repayments up to $20,000 per year without penalty. Free online redraw. Optional 100% offset feature ($10/month) 10% minimum deposit. Fees & charges apply, Australian Credit Licence 237879 is held by Bendigo and Adelaide Bank Limited, the credit provider.
Read reviews and learn more about NRMA Insurance home loans
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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.
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Lock in a low 2 year fixed rate with the Mozo award winning Home Lender of the Year. Available for live-in borrowers with just a 10% deposit required. Free extra repayments (up to 20% in fixed period), free redraw and partial offset available. $10 monthly service fee. Aussie support centre. Fast approvals. Up to 6 free offset accounts (T&Cs apply).
Read reviews and learn more about Bendigo Bank home loans
Go to siteCompetitive fixed rate on up to a 30 year loan term. No application fees to pay. Additional repayments up to $20,000 per year without penalty. Free online redraw. Optional 100% offset feature ($10/month) 10% minimum deposit. Fees & charges apply, Australian Credit Licence 237879 is held by Bendigo and Adelaide Bank Limited, the credit provider.
Read reviews and learn more about NRMA Insurance home loans
Go to siteLock in a low 2 year fixed rate with the Mozo award winning Home Lender of the Year. Available for live-in borrowers with just a 10% deposit required. Free extra repayments (up to 20% in fixed period), free redraw and partial offset available. $10 monthly service fee. Aussie support centre. Fast approvals. Up to 6 free offset accounts (T&Cs apply).
Read reviews and learn more about Bendigo Bank home loans
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Get repayment certainty with HSBC’s low 2 Year Fixed Rate Home Loan. Make up to $10,000 of extra repayments a year. The option to split your home loan between fixed and variable. Plus, score $3,288 cashback when you refinance an existing home loan of $250,000. Must apply by 28 February 2023 and settle by 30 April 2023.
Read reviews and learn more about HSBC home loans
Compare 25+ lenders with our trusted partner, Lendi.
Talk to one of their experienced home loan specialists by answering a few questions online.
Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.
Read reviews and learn more about ANZ home loans
Compare 25+ lenders with our trusted partner, Lendi.
Talk to one of their experienced home loan specialists by answering a few questions online.
Competitive variable rate on up to a 30 year loan term. No application fees to pay. Unlimited additional repayments. Free online redraw. Optional 100% offset feature ($10/month) 10% minimum deposit. Fees & charges apply, Australian Credit Licence 237879 is held by Bendigo and Adelaide Bank Limited, the credit provider.
Read reviews and learn more about NRMA Insurance home loans
Go to siteBuilt 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.
Read reviews and learn more about Unloan home loans
Go to siteEnjoy competitive rates for owner occupiers. Enjoy unlimited free extra repayments. Flexibility to redraw additional payments for free. No ongoing monthly service fee. Receive $3,288 cashback when you refinance an existing home loan. Minimum loan amount of $250,000, settle within 120 days from applying.
Read reviews and learn more about HSBC home loans
Compare 25+ lenders with our trusted partner, Lendi.
Talk to one of their experienced home loan specialists by answering a few questions online.
Get online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.
Read reviews and learn more about Bendigo Bank home loans
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Get a competitive variable rate with ING’s Mortgage Simplifier. Free extra repayments, no monthly or annual fees. Freedom to make free extra repayments or redraws.
Read reviews and learn more about ING home loans
Compare 25+ lenders with our trusted partner, Lendi.
Talk to one of their experienced home loan specialists by answering a few questions online.
Get competitive rates on loan terms of 5 to 30 years with the Aussie Elevate Home Loan. Structure your loan with up to five splits. Make additional repayments (T&Cs apply). Offset accounts available. Unlimited redraw using your online banking account. Choose from weekly, fortnightly or monthly payments For loan amounts from $10,000 to $5 million.
Read reviews and learn more about Aussie home loans
Compare 25+ lenders with our trusted partner, Lendi.
Talk to one of their experienced home loan specialists by answering a few questions online.
Your selected home loans
The Mozo database tracks 461 home loans from 96 Australian lenders, so you can compare rates, fees and home loan features side-by-side.
We have spent our days keeping tabs on rates, crunching numbers, and breaking down bank jargon to provide you with practical tips, breaking news and expert analysis since 2008.
We’re regulated by ASIC and are committed to bringing you a free service. You can search all providers in our database regardless of whether we get paid or not.
Mozo’s team of home loan experts include data analysts, finance journalists and compliance professionals. Meet the team
Inflation in Australia continues to ease, bringing us closer to home loan rate cuts in the coming months. However, consensus is split on whether the Reserve Bank of Australia (RBA) will cut interest rates in December 2024, or if borrowers will have to hold out for a cash rate cut until early 2025.
What the RBA wants to see is annual inflation fall within the 2-3% range. When the September quarter Consumer Price Index (CPI) is released at the end of this month, we’ll have a better idea of how inflation is tracking and whether the economy is ready for a cash rate cut in December.
Lenders sure seem ready for it, however, as the Mozo database recorded 200 fixed rate cuts last month alone. Lenders set their fixed rates based on where they predict interest rates are headed. So, this is a good sign.
The average variable rate† in the Mozo database is 6.75% p.a., while the lowest is Bank Australia’s Clean Energy Home Loan Eco Plus, at 5.88% p.a. (6.20% p.a. comparison rate*)†† for the first 60 months.
As at 24 October 2024, the lowest variable rates†† among lenders we track are:
†Average owner-occupied variable rate for a $400,000 loan with principal and interest repayments and <80% LVR in the Mozo database at 24 October 2024.
††Lowest variable home loan rates for a $400,000 loan with principal and interest repayments and <80% LVR in the Mozo database at 24 October 2024.
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.
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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 | 7.19% p.a. | $5,752 | $925,470 |
| All variable rates | 6.75% p.a. | $5,527 | $858,188 |
| Source: Mozo database, 24 October 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. | |||
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 24 October 2024, the average variable home loan rate is now 6.75% according to the Mozo Database (based on OO, P&I, $400k, <80% LVR loan).
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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.
Our expert guides will give you the knowledge you need to manage your mortgage from search to settlement. See all
Get the latest on property market trends, interest rates, and lending news from Mozo's expert writers. See all
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A home loan is an amount of money that you borrow to finance the purchase of a property.
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 (principle), plus interest, over a period of time.
There are a range of different factors that determine the repayment amount.
There are two types of home loans: owner-occupied and investment home loans.
Looking to see if you can switch and save, fix your rate, or finance an investment property purchase?
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.
Crunch the numbers with our range of handy home loan calculators! See all calculators
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:
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
We compare home loans from the following well-known providers and many more... See more home loan providers
When my husband sold his business he got a large cash transfer and Bendigo bank couldn’t track the money The man said we should wait 24hours We were like we are not leaving till you find out where in your system it is They found it within the hour Also they have a lot of online banking outages which can be frustrating when you are shopping We are actually going to open another account with another bank and put some money in for when they go down
Read full reviewWhen my husband sold his business he got a large cash transfer and Bendigo bank couldn’t track the money The man said we should wait 24hours We were like we are not leaving till you find out where in your system it is They found it within the hour Also they have a lot of online banking outages which can be frustrating when you are shopping We are actually going to open another account with another bank and put some money in for when they go down
Great for Qantas points, you get 100,000 Qantas points on the anniversary of your home loan. The interest rates are also very good too and competitive.
Read full reviewGreat for Qantas points, you get 100,000 Qantas points on the anniversary of your home loan. The interest rates are also very good too and competitive.
Easy to deal with Local branches Supportive service
Read full reviewEasy to deal with Local branches Supportive service
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