Cheapest home loan rates


Getting the cheapest home loan rates means doing your homework and taking time to compare affordability for both properties and lenders options.

So, you want your slice of the Australian dream and to purchase your very own piece of the world. But you also want to ensure that you get the cheapest home loan rates possible, the best lender for your circumstances and the right property. It’s a challenge and it pays to take your time and do your homework before rushing into the first, exciting sale you can find.

The cheapest home loan is the smallest one. Like all loans, you pay back both the principal lending amount as well as interest accrued on that value so, in the simplest terms, if your loan amount is small then your home loan will be cheap.

But buying property is expensive! As housing affordability continues to rise across Australia, it is still very much a fluctuating market and there are peak times to buy and peak times to sell. The good news is that recent trends have the housing market at a great time to invest right now. House prices have fallen meaning that you already have to borrow less for your own slice of heaven. The Reserve Bank of Australia has also kept interest rates low so loan rates are also more affordable.

Investment properties

Cheap home loan rates for investment properties are a little different to owner-occupier rates. As lenders have split these investment portfolios, it can seem as those property investment is harder to get into than simply buying your own home. However, if the leg work is done then you can still find great investment rates from lenders.

These rates will be affected by a host of conditions and the good news is that you mostly have control over those conditions. Consider these factors when looking for the right lender for your investment property:

  • How much you need to borrow – do you have equity on a home you already own? How much do you have saved? Is your ideal investment property viable?
  • Loan term – how long will you need to repay this loan? What is a viable length of time versus the shortest period?
  • Repayment type – what sort of repayment type will you be looking for and why? Will an interest only repayment work for you and your circumstances?