Best Home Loan Rates Australia 2025
Compare mortgage rates from banks and online lenders. Find the lowest rates for your situation.
Variable Rate Home Loans
Rates for owner-occupier, principal & interest loans at 80% LVR or below.
| Lender | Type | Rate | Comparison* | Max LVR | Offset | Features |
|---|---|---|---|---|---|---|
| Unloan LOWEST | Online | 5.74% | 5.76% | 80% | ✓ | No fees, automatic rate matching |
| Ubank | Online | 5.79% | 5.79% | 80% | ✓ | Free redraw, no ongoing fees |
| Athena | Online | 5.84% | 5.84% | 70% | ✗ | Rate drop guarantee |
| Tic:Toc | Online | 5.89% | 5.89% | 80% | ✓ | 10-minute approval |
| ING | Bank | 5.94% | 5.99% | 80% | ✓ | Orange Everyday offset |
| Macquarie | Bank | 5.99% | 6.04% | 80% | ✓ | Relationship pricing available |
| CBA | Big 4 | 6.19% | 6.24% | 80% | ✓ | Branch network, full service |
| Westpac | Big 4 | 6.24% | 6.29% | 80% | ✓ | Package discounts available |
| NAB | Big 4 | 6.29% | 6.34% | 80% | ✓ | Rate lock available |
| ANZ | Big 4 | 6.34% | 6.39% | 80% | ✓ | Simplicity Plus option |
*Comparison rate based on $150,000 loan over 25 years. Rates current as of January 2025.
Fixed Rate Home Loans
| Lender | Fixed Term | Rate | Comparison* | Features |
|---|---|---|---|---|
| Unloan LOWEST | 2 years | 5.79% | 5.81% | No break fees |
| Ubank | 2 years | 5.84% | 5.84% | Split loan option |
| Athena | 2 years | 5.89% | 5.89% | No ongoing fees |
| NAB | 3 years | 5.94% | 5.99% | Package discount |
| CBA | 2 years | 5.99% | 6.04% | Lock rate at application |
| Westpac | 3 years | 5.99% | 6.04% | Rate lock guarantee |
First Home Buyer Schemes 2025
| Scheme | Min Deposit | Limit | Benefit |
|---|---|---|---|
| First Home Guarantee | 5% | $900,000 (capital) | No LMI required |
| Regional First Home Buyer | 5% | Regional areas | No LMI + regional support |
| Family Home Guarantee | 2% | Single parents | Lowest deposit option |
| First Home Super Saver | N/A | $50,000 max | Tax-effective saving |
These schemes let first home buyers purchase with smaller deposits without paying Lenders Mortgage Insurance.
How LVR Affects Your Rate
Loan-to-Value Ratio (LVR) significantly impacts your interest rate:
Tips for Best Rate
- ✅ Aim for 20%+ deposit to avoid LMI
- ✅ Clean up credit file before applying
- ✅ Show stable employment (2+ years)
- ✅ Reduce other debts and credit limits
- ✅ Consider online lenders for best rates
- ✅ Use a mortgage broker for comparison
Should You Refinance?
- 🔄 Current rate 0.5%+ above best available
- 🔄 Fixed rate period ending soon
- 🔄 LVR improved (equity increased)
- 🔄 Need to access equity
- 🔄 Want better features (offset, redraw)
- 🔄 Break fees less than savings
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Understanding Home Loan Rates
Variable vs Fixed: Which is Better?
There's no universal answer - it depends on your circumstances and interest rate outlook:
- Variable: Flexibility, offset accounts, extra repayments without penalty. Best if rates may fall.
- Fixed: Payment certainty, protection from rate rises. Best if rates may rise.
- Split: Combine both - hedge your bets with part fixed, part variable.
What is the Comparison Rate?
The comparison rate includes both the interest rate and most fees, giving a truer cost picture. However, it doesn't include all fees or account for features like offset accounts.
Online Lenders vs Big Banks
Online lenders typically offer rates 0.3-0.5% lower than big banks but with fewer features. They suit borrowers who want the lowest rate and don't need branch access or complex lending.
Disclaimer: Interest rates shown are indicative and subject to change. Actual rates depend on your circumstances, credit history, and loan amount. Always verify current rates with lenders. This is general information, not financial advice.