How to Compare Home Loans in Australia (2026)

Overview

Choosing the right home loan can save tens of thousands of dollars over the life of the loan. But with hundreds of products available, comparing them effectively requires looking beyond the headline interest rate.

The Comparison Rate

Australian lenders are required to display a comparison rate alongside the advertised rate. The comparison rate includes most fees and charges, giving a more accurate picture of the true cost. However, it assumes a $150,000 loan over 25 years, which may not reflect your situation.

Fixed vs Variable Rate

Variable rate loans move with the market — your repayments can go up or down. They typically offer more flexibility (extra repayments, offset accounts, redraw).

Fixed rate loans lock in a rate for 1-5 years, providing certainty. However, break costs can apply if you exit early, and you may miss out on rate drops.

Split loans let you fix a portion and leave the rest variable — a common compromise.

Fees to Watch

• Application/establishment fees — one-off costs of $0-$1,000
• Ongoing monthly fees — $0-$15/month (add up over 30 years)
• Annual package fees — $0-$395/year for packaged products
• Break costs — can be thousands on fixed-rate loans
• Discharge fees — $150-$400 when you pay off or refinance

Key Features to Compare

• Offset account — reduces interest by offsetting savings against your loan balance
• Redraw facility — access extra repayments you've made
• Extra repayment flexibility — no limits or penalties
• Portability — transfer the loan to a new property

How to Compare Effectively

1. Calculate total cost over the full term (not just monthly repayment)
2. Include ALL fees — upfront, ongoing, and exit
3. Consider your likely loan term — will you hold for 30 years or refinance in 3-5?
4. Factor in features you'll actually use (offset, extra repayments)
5. Use our Loan Comparison Calculator to model side-by-side

Compare two loans: Loan Comparison Calculator.