Home Loans & Mortgages

Australian home loans and mortgage products reviewed in 2026. Compare interest rates, loan-to-value ratio (LVR) requirements, offset accounts and features from banks and non-bank lenders. Residential mortgages are regulated jointly by ASIC (consumer credit conduct, including responsible lending) and APRA (prudential standards for banks and lenders, including serviceability buffers).

A home loan is secured against the property being purchased or refinanced and is typically repaid over 25-30 years, with a fixed, variable, or split rate. Most lenders require a minimum deposit, commonly 5-20% of the property value — borrowing above 80% LVR usually requires Lenders Mortgage Insurance (LMI) unless you qualify for a government guarantee scheme.

When comparing home loans, look beyond the advertised rate at the comparison rate (which includes ongoing fees), whether an offset account or redraw facility is included (both can meaningfully reduce the interest you pay over the life of the loan), and any annual package fees. APRA requires lenders to apply a serviceability buffer — assessing your ability to repay at a rate several percentage points above the actual rate offered — to ensure you are not over-extended if rates rise.

Eligibility generally requires being 18+, an Australian citizen, permanent resident or (for some lenders) an eligible visa holder, a stable income history (typically 2+ years for self-employed applicants), and a genuine savings history for the deposit. First home buyers may be eligible for state stamp duty concessions or federal guarantee schemes that reduce the deposit or LMI requirement — eligibility criteria change periodically, so check current settings with the relevant state revenue office.

The typical process is: get pre-approval based on your income and deposit, find a property and make an offer subject to finance, submit a full application with a signed contract of sale, and proceed to unconditional approval and settlement, usually over 4-6 weeks.

Home loans in Australia are regulated under both the National Consumer Credit Protection Act 2009 (via ASIC, covering conduct, disclosure and responsible lending) and APRA's prudential standards, which set capital and serviceability rules that banks and most non-bank lenders must follow. APRA requires lenders to apply a serviceability buffer — assessing your ability to repay at a rate several percentage points above the actual rate offered — so your maximum borrowing capacity is usually lower than a simple affordability calculation would suggest.

Key features to compare include the loan-to-value ratio (LVR): borrowing above 80% of the property value typically triggers Lenders Mortgage Insurance (LMI), a one-off cost that protects the lender, not the borrower. Offset and redraw facilities let you reduce interest by keeping savings linked to the loan, while fixed-rate loans offer repayment certainty but usually restrict extra repayments and charge break costs if paid out early.

First home buyers may be eligible for state-based stamp duty concessions and federal schemes such as the First Home Guarantee, which can reduce or remove the need for LMI on a lower deposit — eligibility and caps vary by state and should be checked directly with Housing Australia or your state revenue office. Always compare the comparison rate, not just the advertised rate, since establishment, valuation and ongoing package fees vary significantly between lenders.

Getting mortgage quotes from several lenders before committing is one of the most effective ways to reduce the cost of a home loan. Because advertised rates rarely reflect what you will actually be offered once your income, deposit and credit history are assessed, requesting a formal mortgage quote (sometimes called a rate lock or pre-approval quote) from two or three lenders lets you compare real, personalised offers side by side rather than relying on headline rates alone. When comparing mortgage quotes, check that each one states the comparison rate, any applicable LVR and LMI cost, and whether the rate quoted is fixed for a set period or subject to change before settlement.