Find out everything you need to know about home loans in Australia right here with Savvy today.
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If you’ve never had a home loan in Australia before, the choice of lenders and loans may seem overwhelming. Fortunately, you can find out everything there is to know about mortgages and the cheapest home loan interest rates in Australia with Savvy. Consider the options available to you by comparing a range of mortgage offers right here and find the information you need to help you make an informed home loan decision.
Choosing a home loan is a matter of understanding the options that are available to you and narrowing down your choices as you make decisions about each loan feature. In this way, you’ll get to understand your home loan needs and will be well on your way to finding the cheapest home loan interest rates in Australia.
Here’s a list of options and features you should consider to help you narrow down your choice:
First of all, decide what type of home you’d like to purchase. There are different loans for all these various scenarios:
Next, think about the type of interest rate you want on your home loan:
The choice between a variable or a fixed rate home loan in Australia depends not only on whether you want budgeting certainty but also on whether you’d like the additional loan features that often come with a variable rate loan. These additional features can help you pay off your loan more quickly, saving you money on interest payments, or provide added lifestyle convenience. Additional features available for variable rate loans can include:
You’ll also need to consider what type of financial service you’re after. These are the main types of lenders available to borrowers in Australia:
Savvy can help you choose between many different lenders and loan types, and help you find the best home loan rates in Australia. We present you with side-by-side comparison information so you have all the facts at your fingertips to help you decide which loan is best for you.
Most lenders will loan you 80% of the cost of the property you wish to purchase, so you will need to provide the additional 20% of the cost. This is known as an 80% loan-to-value ratio (LVR). In addition, you’ll need funds to pay stamp duty and legal costs when you purchase your first house in Australia. Find out how much your stamp duty will be with Savvy's Stamp Duty Calculator.
If you don’t have a 20% deposit, you have several options available to you:
The home loan application process involves several key steps:
You don't have to pay a cent to compare home loans with us, enabling you to do so at any time.
You can fill out a simple online quote via our form without having to worry about sorting through heaps of paperwork.
With a panel of reputable mortgage lenders behind us, you can rest assured you'll be comparing high-quality options.
Even a small difference in interest rates can make a huge difference over the life of your loan, so search for the lowest possible interest rate. However, you should make sure you compare a loan’s comparison rate, not just its base interest rate. The comparison rate takes a loan’s fees into account to give you a clear picture of the true cost of the loan so you can compare ‘apples with apples’.
You can use our comparison rate calculator to give a rough idea of what your loan might cost overall.
Most home loans in Australia are available for between 25 and 30 years. Choose the shortest possible term manageable for you to make sure you pay the least interest.
Use Savvy’s how long to repay your home loan calculator to work out how your repayments will increase as your loan term gets shorter.
Generally, the higher the deposit required for a loan, the lower the interest rate. When you’re comparing loans, look for one which matches the deposit you have available.
If you’re only able to put up a 15% deposit, you can look to apply with a lender who accepts sub-20% deposits.
Obviously, you should always aim for the lowest fees possible. There are many loans available now with low or no application fees and no ongoing monthly fees. If you’re applying for a fixed rate home loan in Australia, check the small print on your loan to see if there are early exit fees if you choose to pay off your home loan sooner.
You can save thousands on interest if you pay your loan weekly or fortnightly instead of monthly, so you should prioritise lenders who can enable you to pay more frequently.
Use Savvy’s fortnightly and weekly repayment calculator to see how much interest you’ll save if you make your loan repayments more frequently.
Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.
We’re partnered with lenders, insurers and other financial institutions who compensate us for business initiated through our website. We earn a commission each time a customer chooses or buys a product advertised on our site, which you can find out more about here, as well as in our credit guide for asset finance. It’s also crucial to read the terms and conditions, Product Disclosure Statement (PDS) or credit guide of our partners before signing up for your chosen product. However, the compensation we receive doesn’t impact the content written and published on our website, as our writing team exercises full editorial independence.
For more information about us and how we conduct our business, you can read our privacy policy and terms of use.
© Copyright 2024 Quantum Savvy Pty Ltd T/as Savvy. All Rights Reserved.
© Copyright 2024 Quantum Savvy Pty Ltd T/as Savvy. All Rights Reserved.
Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.
We’re partnered with lenders, insurers and other financial institutions who compensate us for business initiated through our website. We earn a commission each time a customer chooses or buys a product advertised on our site, which you can find out more about here, as well as in our credit guide for asset finance. It’s also crucial to read the terms and conditions, Product Disclosure Statement (PDS) or credit guide of our partners before signing up for your chosen product. However, the compensation we receive doesn’t impact the content written and published on our website, as our writing team exercises full editorial independence.
For more information about us and how we conduct our business, you can read our privacy policy and terms of use.
