Who actually gets the lowest home loan rates
The lowest rates advertised in Australia are real, but they are not available to everyone. They are the bottom of a pricing ladder, and where you sit on that ladder is determined by measurable things you can often change.
The profile that attracts the sharpest pricing
- A low loan-to-value ratio, often below 60 or 70 per cent.
- Owner-occupied rather than investment purpose.
- Principal and interest rather than interest only.
- A standard, well-documented income and clean repayment history.
- A straightforward security property in a location the lender lends against readily.
The loyalty gap
Lenders discount hardest to win new business. Existing borrowers are seldom moved to those rates automatically. Over several years, a loan that started competitive can sit well above what the same lender offers a new customer with identical circumstances. Time on a loan, on its own, tends to work against you.
Practical ways to move down a tier
- Reduce the balance or wait for the property value to move so your loan-to-value ratio crosses a tier boundary.
- Switch from interest only to principal and interest if that suits your position.
- Ask your lender to review your rate, then verify the answer against the wider market.
- Refinance if the gap after costs justifies it.
See where your rate sits against the market in 60 seconds
Enter your loan balance, property value and current rate. You get an honest verdict with real numbers, even when the verdict is that you are already on a good deal.
Compare home loan rates nowRelated comparisons
- Home Loan Comparison: what to compare beyond the headline rate
- Mortgage Rate Comparison: how Australian lenders actually set your rate
- Best Home Loan Rates: why "best" depends on your profile
- Cheapest Home Loan Rates: headline rate versus true cost
- Lowest Home Loan Rates: who qualifies for the sharpest pricing
- Refinance Home Loan Rates: the break-even maths
- About RateSearch: who is behind this tool
This page provides general information only and does not take your objectives, financial situation or needs into account. It is not credit assistance, a credit quote, or an offer of finance. Any rate you are offered depends on a full assessment by a lender. RateSearch is operated by Mango Financial Group, an authorised credit representative (CRN 530027) of Finsure Finance and Insurance Pty Ltd, Australian Credit Licence 384704.