HOME > BLOG > Home Loan Advice > How to find the best home loan interest rate

A competitive rate can help borrowers save thousands, so it’s no wonder that finding the best home loan interest rate is on the top the list.

But how can you find the most competitive interest rate in the market? The answer is simple: research. Googling home loan interest rates, checking out comparison websites and chatting to lenders should all be part of your research.

Interest rates do play a part in how much you could save, but borrowers shouldn't forget about other factors that could influence your finances and your overall experience. Loan features, fees, restrictions, lender customer service record, processes and awards should also be taken into consideration when looking at different home loan options.

Here is a quick guide when you are looking for different interest rate home loans:

Best variable rate

  1. When looking for the best variable rate, not all rates applicable to your loan will be advertised online, so you need to find out exactly what you qualify for. For example, some major banks advertise a standard variable interest rate, but there will also be package discounts. These discounts will depend on a variety of factors such as loan size and negotiation power, whether you want interest only or principal and interest only repayments, or whether it is an owner occupied or investment loan.

  2. Create a list of lenders and variable rate home loans that interest you and start asking questions. Don’t forget to ask about features and fees as these could end up being the deciding factors.

  3. A mortgage broker may be able to help you find the best variable rate home loan. Although this helps you save time on research, be aware that the mortgage broker will only give you options from their panels of lenders, which means you could be missing out on great deals from other lenders outside the panel. This is why it is important to do some of your own research as well.

    Read more about getting the best variable rate including pros and cons, factors that determine the rate, features to expect, costs and more.

Best fixed rate

Do you want stability around their home loan repayments? A fixed rate may be for you. But there are important factors to consider:

  1. What are the restrictions attached to the fixed rate? Know what you can and can’t do when your loan is fixed. During the fixed period, some lenders will not allow extra repayments or if you decide to refinance or repay your home loan in full during this time, you will be charged a break fee.

  2. What will the interest rate revert back to after the fixed rate period ends? The variable rate for some fixed home loans are not as competitive and many borrowers end up spending a lot more in interest once the fixed period ends. When doing your research, take a look at different comparison sites and then start to speak to different lenders about their fixed rate options.

    Read more about getting the best fixed rate including pros and cons, how long to fix for, features to expect, tips and more.

Best self employed rate

  1. The interest rate offered for self employed home loans will depend on a number of factors, most of which centres around your income. The type of information you are able to provide on your income will determine which loans and interest rates you qualify for.

  2. To help you understand your options it is important to find a lender who specialises in self employed home loans. They will have the experience to help you find the best rate possible.

    Read more about getting the best self employed rate including finding the right lender, verifying income, tips and more.

Best bad credit rate

  1. Finding the best bad credit interest rate will depend on a number of factors such as the number of defaults on your credit file, the type of defaults, number of enquiries, your ‘risk’ factor, how far behind you are with current commitments and reasons for financial issues. In some cases a borrower may qualify for a standard loan even with defaults but more often a specialised loan is needed.

  2. These loans are considered case-by-case so it is worth finding a lender with specialist bad credit home loan options. They will be able to assess your situation and provide the most suitable options for you.

    Read more about getting the best bad credit rate including determining factors, important steps, tips and more.

Overall, finding the best interest rate comes down to doing your research on a number of different loans and lenders. At State Custodians, we are able to advise on a range of home loans to find one that suits you.

If you would like to chat to our friendly team, give us a call on 13 72 62 or leave your details here and we will contact you.