Home Loan Calculator

Home Loan Rates Comparison

Buying a home is a life-changing experience, from saving a deposit to making the repayments. There are many home loan products in the market, and as a home buyer, you want a loan that will best suit your financial situation. Here’s a quick guide on how you can compare home loan rates:

Interest rate

Interest rates can make a huge difference to the total amount you end up repaying on your home loan. Even a small change to your interest rate could make a huge impact to the overall amount you pay back on your loan.

Comparison rates

We often look at the advertised interest rate when comparing home loans. Looking at the comparison rate instead will give you a much more accurate representation of the loan because it includes the interest rate, fees and charges related to the loan.

Fees

Many home loans come with upfront and ongoing fees, depending on the product. This may include application fees, monthly service fees or lender’s mortgage insurance, which is why it's wise to pay attention to these.

Features

Interest rate is not the only thing to look out for. Home loan features such as redraw facility or an offset account can be useful to save interest on your home loan.

Home loan calculator

A home loan calculator is a helpful tool when comparing home loans. It can help you gauge the amount of your repayments as well as the overall amount you will pay back on the loan based on your loan amount, term, and interest rate.

Approval Requirements for a Home Loan Application

Applying for a home loan will have different requirements depending on the lender. Generally, to be eligible for a home loan in Australia you must be:

• at least 18 years old

• a citizen or a permanent Australian resident

Here are the most common requirements for a home loan application. You must have:

• Personal identification: To verify your identity, residency, and age. This can be your passport, driver’s license, or State or Territory-issued photo ID card.

• Proof of income: Lenders will check your financial stability to measure your ability to repay the loan. This will also include your assets and liabilities.

• Credit history: This will be used to assess your risk as a borrower. With a high credit score, it’s more likely your home loan application will be approved.

• Home loan deposit: Typically, at least 20% of the property’s value is needed for a down payment. It’s also possible to provide a 10% deposit, however, you will pay Lender’s Mortgage Insurance, just in case you default on the loan.