Home Loan Rates in Australia: See How Much the Big Banks Charge

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Home Loan Rates in Australia: See How Much the Big Banks Charge

Homebuyers in Australia have borrowed over $14.1 billion in home loans. Banks and other lenders don’t just issue this money for free. You’ll have to pay the borrowed amount together with the interest that accumulates on the principal.

Keep in mind that there are also several fees and charges, such as valuation, application, conveyancing, legal, stamp duty, and mortgage registration fees.

Regarding the home rates, there are plenty of competitive offers out there, ranging from 2.60 percent to 6.00 percent. Comparing them with tools, such as Mate.com.au, is one of the effective ways of finding the ideal rate for you.

What Is the Cheapest Home Loan Rate in Australia?

It’s common for people to shop for “top,” “best,” “lowest,” or “cheapest” home loan rates. The truth is, these terms are subjective, and they don’t necessarily mean that a particular rate is better than most.

It’s possible to get a lower rate, but you’ll pay more in fees and charges. Such rates may also have stricter requirements.

Athena Home Loans

If you’re looking for a fee-free loan, then Athena home loans make a great pick. The institution offers two loan options for homebuyers: principal & interest loans and interest-only loans.

Principal & interest loans have a variable rate of 2.84 percent and a comparison rate of 2.80 percent. Interest-only loans have a 3.34 percent variable rate and a 2.99 comparison rate.

These are the company’s rate as of October 2019, and they are variable. Athena, though, plans to offer fixed and split rates in the future.

ANZ

For home buyers, ANZ has three different options for home loans. They include:

  • ANZ Standard Variable – This loan has an interest rate of 3.89% p.a. to 4.29% p.a. and a comparison rate of 4.30% p.a. to 4.69% p.a.
  • ANZ Fixed – With this option, you get an interest rate of 2.98% p.a. and a 4.35% p.a. comparison rate.
  • ANZ Equity Manager – Here, ANZ offers an interest rate of 5.51% p.a. to 5.91% p.a. with no comparison rate.

Keep in mind that rates differ based on the borrowed amount and terms.

Suncorp

With Suncorp, you also get to pick from three options: 

  • Back to Basics – a 3.18 percent variable rate and a 3.19 percent comparison rate.
  • Standard Variable – a 3.59 percent variable rate and a 3.99 percent comparison rate
  • 3-Year Fixed – a 2.99 percent fixed rate and a 3.84 percent comparison rate.

The standard variable loan has more features than the other two options.

St. George

St.George is a division of Westpac, one of the Big Four banks in Australia. You have four options, but you can only compare up to three choices on its site.

  • Standard Variable Rate Home Loan
  • Fixed-Rate Home Loan
  • Portfolio Home Loan
  • Basic Home Loan

All these loans have a fixed rate of 2.89 percent for one to five years. The rate changes to a variable rate after the agreed period. The comparison rate ranges from 3.64 percent to 3.81 percent, depending on your loan term.

AFG Home Loans

With AFG, you get a host of products to choose from, each with different benefits and features:

  • Retro – Variable rate
  • Link – Flexible
  • Edge – Variable rate
  • Alpha
  • Options/Optimal

Unfortunately, AFG doesn’t publish its rates. You have to contact the company directly to learn more about the specifics of a particular loan product.

Tic: Toc Home Loans

Tic: Toc has two options for borrowers seeking to buy a live-in property.

  • The live-in variable option has a variable rate of 2.84% p.a and a comparison rate of 2.85% p.a.
  • Live-in fixed has a one year fixed rate of 2.84% p.a. and a comparison rate of 2.94% p.a.

If you’re an investor, there is a fixed-rate loan at a rate of 2.94% p.a. and a 3.19% p.a. comparison rate. The variable loan comes at a rate of 3.20% p.a., and a comparison rate of 3.21% p.a.

Final Thoughts

If you’re comparing your home loan options, the interest rate if one of the critical factors to take into account. However, it’s the only thing you need to review when shopping around.

You also need to look at the features and terms a particular loan offers. If possible, work with a professional to help you compare the loans. Or, you can use online brokers, such as Mate and Canstar, to examine every detail of a loan before you apply.

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