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Home Loans Melbourne

Compare interest rates and home loans in Melbourne to ensure you get the best home loan interest rate deal available.

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, updated on August 7th, 2023       

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Being able to afford your dream home can feel a lifetime away if you live in Melbourne, as house prices in Australia’s ‘cultural capital’ are traditionally quite high.  The average house price in Melbourne in 2021 sat at $1.23M, which is still less than Sydney’s average $1.41M cost. 

However, if you find a suitable low interest rate home loan and have a reasonable deposit, buying your dream home could become a reality much sooner.  Read all about the top home loans on the market and compare lenders right here with Savvy to help you find the best home loan deal in Melbourne.

Home Loans

Features and benefits of home loans in Melbourne

Lowest interest rates available

Save thousands on your mortgage by finding a loan that suits you with the lowest interest rate on offer for your situation.

Borrow as much or as little as you need

There’s no upper or lower limit to the loan amount you can apply for, so get the home loan that suits your particular lifestyle needs.

Get pre-approved for your loan

Receive conditional approval for your home loan before formally applying to give you an idea of what sorts of properties you’ll be able to buy.

Home loans up to 30 years

Select a loan term that best suits your borrowing capacity, with home loan terms up to 30 years available.

Choose your own repayment schedule

Make your loan repayments weekly, fortnightly or monthly – it's now your choice to make repayments more frequently to fit in with your wage cycle.

Pay no fees

Nobody likes paying additional fees. Fortunately, you’ll be able to compare no-fee home loan options to further reduce the overall cost of your home loan.

How to compare home loans in Melbourne

Frequently asked questions about home loans in Melbourne

Will I have to pay stamp duty on my new home in Melbourne?

Not necessarily – the Victorian Government abolished stamp duty for first home buyers purchasing property or land for $600,000 or less in 2017. For first home buyers purchasing property between $600,000 and $750,000, you may be eligible for a stamp duty concession.

How much is the First Home Owner Grant worth?

Provided you meet the eligibility criteria for the First Home Owner Grant, you can qualify for up to $10,000 to put towards your first home purchase if you live in Melbourne.  After this, you can qualify for the land transfer duty waiver of 50% for new properties or 25% for existing properties or vacant plots, provided your home is worth less than $1 million.

Is there any assistance available to me as a low-income earner in Melbourne?

Yes – the Victorian Homebuyer Fund (VHF) is designed to help low-income earners gat a home loan with a smaller deposit. Eligible participants only require a 5 per cent deposit, and the Government provides up to 25 per cent of the purchase price in exchange for an equivalent share in the property.

How much does my credit score affect the home loan I’m able to get?

Not hugely – because mortgages are backed by a significant appreciating asset in the form of property, your credit score won’t usually be a major factor in your home loan. If you have a bad credit score, or defaults or bankruptcies on your file, you may not be approved for financing.

Can I refinance my mortgage to get a loan with a lower interest rate?

Yes – by continually comparing home loan offers and rates with a view to refinancing, you can save yourself a significant amount of money. This involves taking out a new home loan, which you use to pay off your existing mortgage and repay your home loan on updated terms. However, you may incur fees if your current loan doesn’t permit early exits.  Even if you have to pay these fees, though, the benefit of refinancing might outweigh its cost.

How long does the home loan process take?

Unlike smaller loans, the home loan application and approval processes are typically longer with more moving parts. However, they’re not always hugely long and can be processed and approved within seven days, with pre-approvals available within just 60 minutes. This is dependent on several factors, such as the complexity of your financial situation and whether all of your documentation has been submitted correctly. Settlement on your home purchase is likely to take several further weeks, however.

What happens at the end of a fixed rate home loan term?

Once your fixed term ends on your home loan, your home loan will switch to a variable rate. This is known as the revert rate and is often higher than the standard variable rates you’d find with your lender. Because of this, you may find it best to refinance to a lower rate or simply refix your rate once again.

Are there any fees related to paying out my mortgage early?

No – fees charged for paying out your loan early on a variable interest rate were banned in Australia in 2011, so you won’t have to worry about exit fees on your loan. However, if you’re currently paying off a mortgage that you took out before July 1, 2011, you may have exit fees included in your contract. It’s important to check with your lender and review your contract to determine whether this is the case.

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