How a home loan comparison works
A home loan is usually the biggest debt you'll ever carry, so small differences add up. A slightly lower rate, a fee avoided or a feature you'll actually use can be worth thousands over the life of the loan.
We compare home loans across the panel, from the big banks to smaller lenders and non-banks, and hand you a shortlist that fits your deposit, your income and your plans. Then a broker takes it from application through to settlement.
Buying your first home
Your deposit
Deposits commonly range from 5% to 20% of the price, plus money for stamp duty and costs. Borrow more than 80% of the property's value and you'll usually pay lenders mortgage insurance, which protects the lender, not you.
Government help
First home buyer grants, stamp duty concessions and the government's home guarantee schemes can cut the deposit you need or the costs you pay. They vary by state and change often, so we check what applies to you when you buy.
Pre-approval first
Get pre-approved before you start inspecting, especially if you're buying at auction. You'll know your limit and can move when the right place comes up. See pre-approval.
Fixed, variable or split
Variable
The rate moves with the market. Usually comes with an offset account or free extra repayments, so you can pay the loan down faster.
Fixed
The rate is locked for a set period, often one to five years. Certainty on repayments, but limits on extra repayments and break costs if you leave early.
Split
Part fixed, part variable. Some certainty and some flexibility, which is why plenty of borrowers land here.
We go through the trade-offs properly in fixed vs variable home loan rates.
What lenders look at
Your income
Payslips and employment history if you're employed. Tax returns or BAS if you're self-employed, with low doc options at some lenders.
Your spending and debts
Lenders assess your living costs and every existing commitment, including credit card limits and buy now pay later accounts.
The property
The lender values the property itself. Units, rural land and anything unusual can face tighter lending limits.
Buying a farm or rural property
Rural property is lent on differently to a house in the suburbs, and the difference starts with what you are buying.
Hobby farm or working farm?
A home on acreage that you live on, where any farm income is small, is usually a home loan with the right lender. A property run as a farming business, where the farm income pays the loan, is usually agribusiness lending, assessed on the business.
Bigger deposits and land size limits
Many lenders want a bigger deposit on rural land than on a house in town, and each sets its own limit on how much land it will lend on as a home loan. Above that limit fewer lenders will do it. Matching the property to the lender matters more here than almost anywhere.
What the lender looks at
- The land size and zoning
- Access: all-weather roads and the distance to a town
- Water: rights, bores, dams and rainfall
- The house, and whether it is liveable now
- Recent sales of similar properties nearby, which drive the valuation
Vacant land
Land to build on later usually needs a bigger deposit than an established home, and some lenders want to see a plan for the build. A construction loan then pays the builder in stages.
First-time farmers
If you are buying your first working farm, the Australian Government's Regional Investment Corporation offers the AgriStarter Loan for first farmers and farm succession: up to $2 million over 10 years, alongside a commercial lender's loan rather than instead of it. At least half your total debt must be with a commercial lender, and you need to earn, or plan to earn, at least half your income from the farm and put at least half your work into it. Check the current terms at ric.gov.au.
Financing tractors, headers or farm utes rather than land? That is agricultural finance.
Already have a home loan?
Refinancing
If you haven't reviewed your rate in a couple of years, there's a fair chance you're paying more than a new customer would. See refinancing.
Investing
Investment loans work differently, with their own rates and deposit expectations. Our guide to LVR and investment property deposits explains it.
Buying before you sell
Bridging finance covers the gap between buying the new place and selling the old one. See bridging finance explained.
Home loan questions
How much can I borrow?
It depends on your income, your living costs, your existing debts and the lender's own rules. Lenders also test whether you could still manage the repayments if rates rose. We can give you an estimate before you apply.
What is lenders mortgage insurance?
LMI is a one-off cost charged when you borrow more than 80% of the property's value. It protects the lender if the loan isn't repaid, not you. It can often be added to the loan.
Can I get a home loan if I'm self-employed?
Yes. Most lenders want two years of tax returns, but some will consider one year, or use BAS and bank statements instead.
Will checking my options affect my credit score?
No. Getting a quote has no impact on your credit score. A credit check only happens when you decide to apply.
How long does approval take?
Longer than a car loan, because the lender values the property and checks more paperwork. Timeframes vary between lenders, and we'll tell you what to expect for yours.
How much deposit do I need for a hobby farm?
Usually more than for a house in town, and it depends on the land size, the house and the lender. Tell us about the property and we will tell you what the lenders that fit it will want.
Can I get a normal home loan on acreage?
Often, yes, up to each lender's land size limit and as long as there is a liveable house. Above the limit, fewer lenders will do it as a home loan.
Will the lender count farm income, or only my wage?
Many lenders lean on your wage and treat farm income cautiously, especially if it is new or irregular. Tax returns showing a steady farm income help it count.
Can I buy vacant rural land and build later?
Yes, usually with a bigger deposit. The build is then funded with a construction loan that pays the builder in stages.
Are there government loans for first-time farmers?
Yes. The Regional Investment Corporation's AgriStarter Loan helps first farmers buy a working farm, alongside a commercial lender. See "First-time farmers" above.
Want to check what you're paying now? Our free financial health check includes your home loan. Planning a renovation? Read personal loan vs home equity.
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