How to find a low rate home loan online

There are many ways to research competitive home loan deals online, but the challenge can be knowing where to start.

Whether you want to apply for a fixed or variable rate home loan, it’s worth shopping around. Making sure you consider products outside of what the big four banks offer can be beneficial, as smaller lenders often offer competitive rates. It will ultimately depend on what you are looking for in a home loan.

What to consider when looking for a low interest home loan

A low interest rate shouldn’t be the only factor when looking for the right home loan for you. Other factors to consider include fees, charges, and additional features.

Looking at the comparison rate of a home loan, as opposed to the advertised rate, should give you a better idea of ​​the overall cost of a home loan. This is because the comparison rate takes into account most of the main fees, while the advertised rate does not.

It’s also important to consider a product’s features when comparing your options. For example, some home loans allow for a split loan option, additional repayments, and/or have an offset account. For many borrowers, these features could be beneficial. But it should be noted that you will generally pay more for a home loan that has all the bells and whistles than one without.

Choosing a home loan is a big financial decision that can often last over 25 years, so it’s important to do a thorough comparison and weigh all your options.

Tools that can help you compare low-rate home loans online

Making the most of online tools can simplify your home loan search. RateCity offers a selection of tools to help you get started.

Mortgage calculators

A handy place to start your home loan search is to use different home loan calculators to understand your budget. Here are some of the calculators available on RateCity and how they might help you:

Comparative tables of real estate loans

To compare a wide range of home loan products side-by-side, consider using a home loan comparison chart. Simply select the filters that match what you are looking for to narrow down the results to only the products that best meet your needs.

Some of the selections you can choose from include:

  • Fixed or variable interest rate
  • Repayment of principal and interest or interest only
  • Investor or owner occupant
  • No clearing, partial clearing or 100% clearing account

Once you’ve applied the appropriate filters and narrowed down your shortlist, you can easily compare interest rates, comparison rates and more.

Home loan rankings

RateCity’s Home Loan Ratings use Real Time Ratings™ to rank home loans based on cost, features and flexibility. The rankings are separated into a range of different categories, with the top five home loans ranked under each.

Credit score check

Your credit score will have a significant impact on the interest rate a lender might be willing to offer you. So, while you’re shopping for a home loan, it might be worth visiting RateCity’s Credit Score Center for a free credit score check to make sure yours is in good shape.

And if you find there’s room for improvement, consider making the effort to increase it before applying for a home loan.

Priscilla C. Carnegie