December Home Loan Rates from 5.34%

Explore Your Mortgage’s cheapest home loan rates - no matter if you’re an investor, first home buyer, or looking to refinance to a better rate.

Last Updated - 4 December 2024
Compare thousands of home loans from 100+ leading Australian Home Loan lenders.
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LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkComparePromoted ProductDisclosure
6.04% p.a.
6.06% p.a.
$3,011
Principal & Interest
Variable
$0
$530
90%
4.6 STAR CUSTOMER RATINGS
  • Available for purchase or refinance, min10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Dedicated loan specialist throughout the loan application.
Disclosure
5.99% p.a.
5.90% p.a.
$2,995
Principal & Interest
Variable
$0
$0
80%
  • A low-rate variable home loan from a 100% online lender.
  • Backed by the Commonwealth Bank.
Disclosure
6.14% p.a.
6.16% p.a.
$3,043
Principal & Interest
Variable
$0
$350
60%
6.09% p.a.
6.22% p.a.
$3,027
Principal & Interest
Variable
$10
$220
80%
6.14% p.a.
6.19% p.a.
$3,043
Principal & Interest
Variable
$0
$600
90%
6.18% p.a.
6.33% p.a.
$3,056
Principal & Interest
Variable
$10
$450
70%
6.14% p.a.
6.39% p.a.
$3,043
Principal & Interest
Variable
$248
$350
70%
6.18% p.a.
6.21% p.a.
$3,056
Principal & Interest
Variable
$0
$845
80%
6.54% p.a.
6.86% p.a.
$3,174
Principal & Interest
Variable
$null
$null
80%
6.79% p.a.
6.87% p.a.
$3,256
Principal & Interest
Variable
$8
$350
70%
7.24% p.a.
7.24% p.a.
$3,407
Principal & Interest
Variable
$0
$160
95%
8.80% p.a.
8.94% p.a.
$3,951
Principal & Interest
Variable
$8
$600
95%
More home loans
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of .

Important Information and Comparison Rate Warning


December’s Lowest Home Loan Rates

The interest rate landscape has shifted in recent times, with signs of the first cash rate cut still appearing on the horizon – but it may be further away than previously thought. Three of the four big banks now predict the RBA will make its first downward move in May, with CommBank now alone in predicting a February cut. Meanwhile, home loan lenders continue to slash fixed rates amid expectations rates could soon begin drifting lower.

Though, that doesn’t mean rates will tumble across the board in the new year. For that reason, it’s more important than ever for borrowers to shop around for the lowest rates available.

For that reason, it’s more important than ever for borrowers to shop around for the lowest rates available.

Here are some of the most competitive variable rate home loans available to owner-occupiers in our database at the time of writing.

Some of the Best Home Loan Rates from our database

Brand

Product

Advertised rate % per annum

Comparison rate % per annum

Arab Bank

Basics Home Loan - Special Offer - LVR ≤60% 5.75% 5.88%
The Mutual Bank Budget Home Loan - Special offer - LVR ≤80% 5.89% 5.89%
Community First Bank

Basic Variable Home Loan - LVR ≤95%

5.94% 5.99%
loans.com.au Solar Home Loan - LVR ≤90% 5.99% 6.51%
Unloan Variable Rate Home Loan - LVR <80% 5.99% 5.90%

Rates correct as of 2 December. Rates may differ to comparison table above.

How to compare home loan interest rates

Comparing home loan interest rates is a simple business. The chart below shows the average interest rate offered on new home loans, as per the most recent data from the Reserve Bank of Australia.

What is the average home loan interest rate?

The average interest rate for home loans in Australia varies based on the type of loan. Owner-occupier home loans typically offer lower rates, with the average variable interest rate for new owner-occupier loans coming in at around 6.3% p.a. in July 2024, while new variable investor home loans had an average rate of around 6.5% p.a.

Comparison rate vs interest rate

Borrowers would also be wise to also keep an eye out for unexpected fees or charges – that’s where the comparison rate comes in handy. Unlike the interest rate, the comparison rate factors in interest, as well as the cost of fees and charges.

A home loan with a low interest rate and a high comparison rate might have costly fees that could negate any potential savings.

Variable rate home loans

The interest rate on a variable rate home loan can rise and fall over time. Variable rates tend to move alongside the official cash rate, which is set by the Reserve Bank. Though, lenders may make changes independently.

A borrower with a variable rate home loan can typically make as many extra repayments as they’d like, potentially shortening the life of a mortgage and reducing the total amount of interest paid. Many variable rate home loans also offer redraw facilities and some promise offset accounts too.

Fixed rate home loan

Fixed rate home loans, on the other hand, provide greater certainty by locking in an interest rate for a fixed amount of time, typically between one and five years. This predictability could be invaluable to borrowers who like to plan their finances over the long-term, or those who mightn’t be able to meet their repayments if their interest rate were to increase.

However, fixed rate home loans generally don’t offer as many features as their variable rate counterparts.

Split loan

Can’t decide between a fixed or variable rate home loan? A split loan could offer the perfect blend of financial stability and flexibility.

A split loan is essentially a mortgage split into two pieces: one with a fixed interest rate and the other with a variable rate. The split loan strategy might allow you to ‘hedge your bets’, taking advantage of both types of interest rates. If rates are falling, having part of your loan as variable means you get some reward from the lower rate environment. On the other hand, fixing part of your loan could benefit you if interest rates were to rise across the board.

    Is the cheapest home loan the best home loan?

    The cheapest home loan available won't always the best choice for you. A lower interest rate might save you money, but you need to consider other factors like fees, features (such as offset accounts or redraw facilities), and flexibility too.

    The best mortgage will be one aligns with your long-term financial goals. After all, you might hold it for decades, while interest rates can change over time.

    Brooke Cooper


    Latest Home Loan Lenders' Interest Rates

    Looking for a specific Home Loan Provider? Explore the brands we compare to see a list of their products, rates and features.

    Northern Inland Homeloans.com.au SWSbank Firstmac Home Loans loans.com.au Home Loans NAB Home Loans homeloans.com.au Home Loans IMB Bank Home Loans Westpac Home Loans Macquarie Home Loans Commonwealth Bank Home Loans ANZ Home Loans Suncorp Home Loans Bank of Melbourne Home Loans Bank Australia Home Loans Unloan Home Loans Tiimely Home Loans UBank Home Loans

    How to find the best home loan for you

    Finding the best home loan for your needs doesn’t have to be a tedious exercise. In fact, tools such are our home loan comparison service can make the job easy!

    Here are the main factors every borrower should take into consideration when hunting for a competitive home loan:

    Take stock of your deposit and expected loan-to-value ratio (LVR)

    The first step to finding your dream mortgage is to take stock of your financial situation. Having a good understanding of how your income, outgoings, and credit score compares to those of other borrowers can help you identify the most favourable home loan product available to you.

    It's also important to know how much cash you can put down as a deposit and how much you're likely to spend on your property purchase. These two figures will give you an idea of what your loan-to-value ratio (LVR) might be, which will help you to select a competitive home loan and assess whether you might need to fork out for lenders mortgage insurance (LMI).

    Consider your home loan needs and explore the market 

    Once you have a grasp of your financial health, it's time to see what deals are on offer. Many would-be borrowers spend most of their time comparing interest rates from various lenders – and no wonder why. The more competitive the interest rate on a mortgage product, the less interest a borrower will likely pay, and the more money they could expect to keep in their pocket.

    However, it's wise to look beyond just the interest rate. It's often valuable to also consider a loan's features (such as an offset account or redraw facility) and fees, as well as whether its interest rate is fixed or variable.

    Do you need an offset account or redraw facility?

    An offset account operates in a similar to a savings account, but it’s linked to your home loan. While a savings account can provide interest, an offset account can save a borrower from paying interest. The money kept in an offset account is ‘offset’ against the amount you owe on your loan, and you won’t pay interest on that sum. However, you need to be realistic about the benefits brought by an offset account, especially as lenders normally charge an extra fee to those who choose to have one.

    A redraw facility is a different beast entirely. Redraw facilities allow you to access any extra repayments you’ve made in the past. By making extra repayments a person can reduce the amount of interest they incur over the life of their loan, and by having a redraw facility they don’t need to loose access to the extra funds used to pay down their loan.

    See also: 10 ways to pay off your home loan faster

    Home loan fees

    Most mortgage lenders charge both regular and occasional fees to borrowers. On setting up a loan, many borrowers face application fees, loan establishment fees, property valuation fees, and legal fees. Going forward, they might also be up for ongoing fees, such as account keeping fees, annual fees, and fees for extra features like offset accounts. Finally, many lenders will charge exit fees, such as break costs or discharge fees, if a borrower pays off their mortgage early or refinances to a different home loan product.

    On top of that, a borrower with a deposit of less than 20% of their property’s value might have to pay for LMI.

    Each lender has a different fee structure, so it's important to compare these costs when shopping for a home loan.

    Different home loan types: Which will suit you best?

    If you're currently comparing home loans, or you've spent time doing so before, you'll likely know that the interest rate, fees, and features offered on a home loan often vary based on the type of loan being considered. Beyond variable and fixed interest rates, many lenders offer 'basic', 'standard', and 'premium' home loan options, with the latter often called a 'package'.

    Here's a breakdown of some of the types of mortgages commonly available and how they typically operate:

    Loan type

    Features and benefits

    Considerations

    Basic home loan

    No-frills loan, typically with a comparatively low variable rate and few features.

    Restrictions and fees may apply to redraw facilities. May not suit those wanting extra features.

    Standard home loan

    Commonly offer redraw facilities and might provide a fixed rate option.

    Often come with a higher interest rate or more fees than a basic loan.

    Home loan package

    Standard loan with additional features, such as offset accounts , interest rate discounts, or other benefits (like a fee-free credit card).

    Annual fee normally applies.

    Refinance home loan

    Allows a borrower to switch from one home loan to another, potentially with better terms.

    Exit fees or break costs might apply for refinancing. It's important to weigh the cost of refinancing against any savings.

    Interest only home loan

    Lower repayments during the interest only period, which typically lasts between one and five years.

    A home loan's principal balance will stay the same during the interest only period, and repayments can increase significantly when it ends.

    Investment home loan

    Tailored for property investors, often offering features like interest only repayments, which can maximum tax benefits.

    Interest rates are typically higher than on owner-occupier loans and eligibility criteria is generally stricter.

    Green home loan

    For energy-efficient homes or renovations. Often offers lower interest rates for borrowers investing in sustainable upgrades.

    Limited availability and specific eligibility criteria. Features and terms vary between lenders.

    Bridging loan

    Helps to fund the transition between buying and selling properties. Can be a single loan using both properties as security or a separate loan for the new property.

    Bridging period is usually six months to a year. If the existing property isn't sold within the bridging period, a seller might be forced to accept a lower price. Could result in a larger debt to repay.

    Construction loan

    For those building a new house or undergoing substantial renovations. Funds can be withdrawn in stages and interest is only charged on funds withdrawn.

    Typically requires a plan, permits, and a fixed-price building contract.

    Reverse mortgage

    Allows homeowners to access equity in their home without selling.

    The loan amount and interest compound over time, reducing the equity in your home.

    Low doc home loan

    Requires less documentation than a traditional home loan. Can be helpful for self-employed individuals or those without regular proof of income.

    Often comes with higher interest rates, more fees, and stricter lending conditions due to the perceived higher risk of default.

    SMSF loan

    Allows a Self-Managed Super Fund (SMSF) to borrow money to invest in residential or commercial property.

    Complex loan structure and strict regulations. If the property investment underperforms, it could negatively impact retirement savings.

    To weigh up more home loan varieties, check out our guide on the different mortgages available on the market.

    Choose a home loan lender

    There are many lenders in the Australian mortgage space, and we compare loans from over 80 of them.

    All lenders in Australia are regulated by the Australian Prudential Regulation Authority (APRA) or the Australian Securities and Investments Commission (ASIC).

    With so many different lenders to choose from, we've broken them down into their respective categories.

    The Big Four

    The Big Four banks are the 'big dogs' in the Australian mortgage market and are by far the most popular among borrowers. They don't typically offer the lowest home loan rates, but their mortgages usually provide convenience and lots of features. These banks also offer a wide range of products, including savings accounts, credit cards, term deposits, car loans, and insurance.

    The Big Four banks are:

    Other banks

    There are a plethora of retail banks of various sizes offering services across Australia. Some of these banks are owned by the Big Four banks. For example, Bank of Melbourne, St George, and BankSA are all owned by Westpac, while CommBank owns Bankwest.

    Some large retail banks that aren't part of the Big Four include:

    Credit unions, building societies, and mutual banks

    Credit unions, building societies, and mutual banks are all examples of customer-owned banks. They're overarching goal is to benefit customers, as opposed to generating a profit.

    Some mutual banks, building societies, and credit unions include:

    Online banks, fintechs, neobanks, and non-bank lenders

    Non-bank lenders are financial companies that aren't Authorised Deposit Taking Institutions (ADIs) and, therefore, can't accept deposits from customers. However, they can still offer mortgages and other types of loans.

    There are also lenders who do their business entirely online or within an app. Because these lenders have fewer overhead costs than traditional banks, they often pass savings onto customers in the form of lower interest rates and fees.

    Some online, neobank, or non-bank lenders include:

    Specialist lenders

    Lastly, there are specialist lenders who offer products for borrowers in unique circumstances. These may include bad credit home loans, bridging finance, or reverse mortgages.

    Some specialist lenders include:

    How our home loan comparison works

    At Your Mortgage, we compare home loans from over 80 lenders, including Australia's Big Four Banks, other retail banks, non-banks, customer-owned banks, and specialist lenders.

    If you have a particular home loan vision, you can also compare mortgages specifically for:

    Our home loan interest rate comparison tables allow you to compare a product's advertised interest rate (a more holistic reflection of a mortgage's true value) and your estimated minimum monthly repayments.

    Home Loan Comparison Guides

    ...

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