Compare Home Loans | 83 Lenders Side-by-Side | Esteb and Co
📊 Smart Comparison Guide

How to Compare Home Loans Properly

Rate is just 1 of 12 factors that matter. Learn what to look for, how to compare features, and which lenders are best for YOUR situation.

Compare 83 Lenders → What to Compare

Important Information

Esteb and Co provides credit assistance services. We are licensed credit representatives (ASIC Credit Rep #574070) who help you compare loan options from our panel of lenders. We do not lend money directly. All loan approvals are made by lenders, subject to their criteria and responsible lending assessments. Our service is free to you - we receive commissions from lenders. Read our Credit Guide

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12
Key Factors to Compare
🏦
83
Lenders in Our Database
⏱️
60 Sec
AI Comparison Time
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$50K+
Avg. Saved with Right Choice

Why Most Home Loan Comparisons Are Useless

Bank comparison sites show you the wrong information. Here's why:

❌

Problem #1: They Only Show Rates

Bank comparison sites rank loans by interest rate. But rate is only 20% of what matters.

Example: Loan A has 5.79% rate but no offset, high fees, and you can't make extra repayments.
Loan B has 5.99% rate but 100% offset, no fees, unlimited extras.

Loan B saves you $80,000 more over 30 years - but ranks lower on comparison sites!
❌

Problem #2: They Show Rates You Won't Get

Advertised rates assume 80% LVR (20% deposit), perfect credit, and stable employment.

Reality: If you have 10% deposit, your actual rate is 0.40% higher than advertised.
If your credit score is 650, add another 0.20%.
If you're self-employed, some lenders won't even approve you.

You need to compare rates YOU can actually get.
❌

Problem #3: They Don't Consider Your Goals

Best loan for a first home buyer is different than best for an investor or refinancer.

Example: Investor needs interest-only + offset for tax reasons.
First home buyer might want P&I with ability to pay off fast.
Refinancer wants low fees and easy approval.

One-size-fits-all comparisons are worthless.

🎯 The Right Way to Compare:

Match YOUR situation (deposit, credit, goals) to lenders' actual policies and pricing. That's what our algorithm does in 60 seconds.

12 Factors to Compare (In Order of Importance)

1

Interest Rate (Variable vs Fixed)

Importance: Very High

The actual interest rate you'll pay. 0.20% difference = $30K+ over 30 years on a $600K loan.

What to Compare:

Variable Rate Changes with market. Currently 5.79-6.39%
Fixed Rate Locked for 1-5 years. Currently 5.89-6.69%
Split Loan Part fixed, part variable. Best of both worlds
💡 Tip: Don't just compare advertised rates. Ask "What rate do I qualify for with MY deposit and credit score?"
2

Offset vs Redraw

Importance: High

HOW you can reduce interest and access your money. This matters as much as rate.

✅ 100% Offset Account (Better)

  • How it works: Separate savings account. Balance offsets loan interest daily.
  • Example: $500K loan, $50K in offset = pay interest on $450K only
  • Access: Instant, no restrictions
  • Tax: Clean for investors (doesn't change loan purpose)
  • Who has it: Most lenders except some fixed loans
🏆 Best option for 90% of borrowers

⚠️ Redraw Facility (OK, Not Great)

  • How it works: Make extra repayments, redraw them later if needed
  • Example: Pay $4K/month on $3K loan. Extra $1K goes into redraw.
  • Access: 2-5 days delay, some limits apply
  • Tax: Risky for investors (redrawing changes loan purpose)
  • Who has it: Most lenders, especially fixed loans
OK for owner-occupier, risky for investment
💡 Tip: 100% offset is worth 0.10-0.20% higher rate. Don't sacrifice it for tiny rate savings.
3

Extra Repayments & Flexibility

Importance: High

Can you pay more when you have extra cash? This cuts years off your loan.

Loan Type Extra Repayments Impact
Variable ✅ Unlimited, no penalty Can pay $50K extra/year, save $200K+ interest
Fixed (Good) ⚠️ $10K-$30K/year limit Some flexibility, better than nothing
Fixed (Bad) ❌ $0 - No extras allowed Locked in. Can't pay off faster. Avoid!

Real Impact: $600K Loan @ 6.00%

No Extra Repayments:

Time to pay off: 30 years

Total interest: $679,190

Extra $500/month:

Time to pay off: 19 years

Total interest: $418,200

💰 Save $260,990 + 11 years!
💡 Tip: If you plan to pay off your loan faster, don't get a loan that restricts extras. Period.
4

Ongoing Fees

Importance: Medium

Monthly/annual fees add up. $15/month = $5,400 over 30 years.

Lender Type Typical Monthly Fee 30-Year Cost
💻 Online Lenders $0 $0
🏦 Big 4 (Package) $10-$15 $3,600-$5,400
🏦 Big 4 (No Package) $10-$20 $3,600-$7,200
💡 Tip: $10/month fee = equivalent to 0.03% higher rate. Not huge, but worth considering.
5

Upfront Fees

Importance: Medium

Application, valuation, legal fees. Can be $0 or $2,000+.

Fee Type Typical Cost Can You Avoid?
Application Fee $0-$800 ✅ Yes - many lenders waive or discount
Valuation Fee $0-$300 ✅ Sometimes - ask lender to waive
Settlement Fee $0-$400 ⚠️ Hard to avoid
Legal/Conveyancing $800-$2,000 ❌ No - but shop around
💡 Tip: Upfront fees matter less than rate/features if you're keeping loan 5+ years. But ask for waivers anyway.
6

Exit Fees (Discharge Costs)

Importance: Medium

Cost to leave the lender. Important if you might refinance or sell within 3-5 years.

✅ Low/No Exit Fees

Cost: $0-$300

Freedom: Refinance anytime without penalty

Who: Most online lenders, some Big 4

⚠️ Moderate Exit Fees

Cost: $300-$800

Freedom: Can exit but costs a bit

Who: Some regional banks, Big 4

❌ Fixed Loan Break Costs

Cost: $5,000-$30,000+

Freedom: Locked in. Breaking is very expensive

Who: ALL fixed rate loans if rates drop

💡 Tip: If there's even a 20% chance you'll sell or refinance in 3 years, avoid high exit fees.
7

Approval Speed & Ease

Importance: Medium

How fast can you get approved? Matters in hot markets or auction scenarios.

Lender Type Pre-Approval Full Approval Best For
💻 Online/Neo Banks 1-3 days 5-10 days Simple situations, speed needed
🏦 Big 4 Banks 3-7 days 10-20 days Standard applications
🏛️ Regional Banks 5-10 days 15-25 days Flexible lending, not rushed
⭐ Specialist Lenders 7-14 days 20-30 days Complex situations only
💡 Tip: Need fast approval for auction? Online lenders win. Have complex income? You'll need slower but flexible lenders.
8

Lender's Lending Policies

Importance: High (If Applicable)

Low rate means nothing if the lender won't approve you. Policies vary wildly.

Who Gets Approved Where?

Your Situation ✅ Will Approve ❌ Will Decline
Self-Employed (2yr ABN) Big 4, Regional, Specialist Most online lenders
Casual Employment Some Big 4, Specialists Most online lenders
95% LVR (5% deposit) Big 4, Some regional Most online, some regional
Investment (90% LVR) Some Big 4, Regional Most online lenders
Bad Credit (defaults) Specialist lenders only Banks, online lenders
Small Apartments (40m²) Some specialists Most major lenders
💡 Tip: This is where brokers add value - knowing which lenders approve which situations. We match you to lenders that will actually say YES.
9

Customer Service & Support

Importance: Medium-Low

How easy is it to get help when you need it?

🏦 Big 4 Banks

  • ✅ Branches nationwide
  • ✅ Phone support 24/7
  • ✅ Relationship managers
  • ⚠️ Long wait times
  • ⚠️ Bureaucratic processes

Best for: People who value in-person service

💻 Online Lenders

  • ✅ Fast online chat
  • ✅ Modern app/website
  • ✅ Quick responses
  • ❌ No branches
  • ❌ Phone support limited hours

Best for: Tech-savvy, self-service people

🏛️ Regional Banks

  • ✅ Personal service
  • ✅ Know your name
  • ✅ Local branches
  • ⚠️ Limited branch network
  • ⚠️ Old-school tech

Best for: Value personal relationships

💡 Tip: Be honest - how often do you actually visit a bank branch? If answer is "never," online lenders are fine.
10

Interest-Only Option (For Investors)

Importance: High (If Investor)

Critical for investors who want lower repayments and maximum tax deductions.

Lender Type Interest-Only Available? Max IO Period Rate Premium
Big 4 Banks ✅ Yes 5-10 years +0.20-0.30%
Regional Banks ✅ Most do 5 years +0.20-0.40%
Online Lenders ⚠️ Some only 5 years +0.30-0.50%

Why Investors Want Interest-Only:

$600K Investment Loan @ 6.5%

P&I Repayment: $3,790/month
Interest-Only: $3,250/month
Save $540/month = $6,480/year

Plus: Higher interest = more tax deductions = more tax refund

💡 Tip: If you're buying investment property, don't even consider lenders without good IO options.
11

Split Loan Capability

Importance: Medium-Low

Ability to split your loan into multiple parts (e.g., 50% fixed, 50% variable).

Why Split Your Loan?

✅ Rate Protection:

Fix half your loan = protected if rates rise, but still benefit if rates fall (on variable half)

✅ Flexibility:

Variable split = offset + extras. Fixed split = certainty on repayments.

✅ Tax Strategy:

Investors can have IO split + P&I split for different purposes

✅ Available: All Big 4, most regional, some online lenders

⚠️ Cost: May have 2x account fees (one per split)

💡 Tip: Split loans are great for risk management but add complexity. Only do it if you have a clear strategy.
12

Portability (Taking Loan to New Property)

Importance: Low

Can you transfer your loan to a new property if you move?

How Portability Works:

You sell Property A and buy Property B. Instead of:

  • ❌ Paying exit fees to discharge loan on Property A
  • ❌ Paying upfront fees for new loan on Property B
  • ❌ Going through full approval again

You simply "port" your existing loan to Property B:

  • ✅ Keep your current rate (if it's good)
  • ✅ Avoid exit and application fees
  • ✅ Faster process

Reality Check:

Useful if: You're moving within 2-3 years and have a great rate

Not useful if: By the time you move, better rates are available anyway (refinance instead)

💡 Tip: Nice to have, but don't sacrifice better rate or features just to get portability.

Your Home Loan Comparison Checklist

Print this and use it when comparing lenders

✓ Must-Have Features

🎯 Nice-to-Have Features

Score 5/5 must-haves? That's a good loan for you.

Score 3-4/5 must-haves? Keep looking - you can do better.

Score 0-2/5 must-haves? Wrong loan for your situation. Start over.

How Our Smart Comparison Works

1️⃣

Tell Us About YOU

Your situation: deposit amount, employment type, credit score, property type, goals.

⏱️ Takes 60 seconds

2️⃣

AI Matches You to Lenders

Our algorithm knows each lender's policies, rates, and approval criteria. It matches YOUR situation to the 3-5 best lenders.

✓ Only shows loans you'll actually get approved for
✓ Shows YOUR actual rate, not advertised rate
✓ Ranks by total cost, not just interest rate

3️⃣

See Side-by-Side Comparison

View your matched lenders side-by-side: rate, fees, features, pros/cons, total cost over 5/10/30 years.

💡 Make informed decision based on ALL factors, not just rate

4️⃣

Apply in One Click

Choose your lender. We handle the application for you. Most approvals in 5-10 days.

✓ Free service. Lender pays us, not you.

Compare 83 Lenders Now →

Home Loan Comparison FAQs

What's the most important factor when comparing home loans?

It depends on your situation, but generally:

  1. Interest rate (if you qualify for advertised rate)
  2. Offset/flexibility (ability to reduce interest and pay off faster)
  3. Lender approval policies (no point comparing if they won't approve you)

A loan with 5.99% + offset + flexibility will save you more than 5.79% with no features.

Should I use a comparison website or a broker?

Broker is better for most people. Here's why:

  • ✅ Comparison sites: Only show advertised rates, not what YOU'LL get. Can't tell you who'll approve you.
  • ✅ Brokers: Know lender policies, can predict approval, negotiate rates, handle paperwork. Free service.

Use comparison sites IF: You have perfect credit, 20%+ deposit, standard situation. Just want to see market rates.

Use broker IF: Any complexity (10% deposit, self-employed, investment, etc.) or you want someone to handle it.

What's the difference between interest rate and comparison rate?

Interest Rate: The actual rate on your loan. Used to calculate repayments.

Comparison Rate: Interest rate + fees, standardized to $150K over 25 years. Meant for apples-to-apples comparison.

Problem with comparison rate: Only accurate if you're borrowing exactly $150K for exactly 25 years. Otherwise it's misleading.

Better approach: Calculate total cost = (Rate × Your Loan Amount × Your Term) + All Actual Fees

How many lenders should I compare before choosing?

Personally review: 3-5 lenders

Have broker compare: 83 lenders

You don't need to personally call 83 lenders. That's what brokers and comparison tools are for.

Our process:

  1. Algorithm compares your situation against 83 lenders
  2. Narrows down to 3-5 best matches for YOU
  3. You review just those 3-5 in detail
  4. Choose your favorite, we handle application

Does comparing loans affect my credit score?

Just comparing = NO impact on credit score

Applying = YES, impacts credit score

How to compare safely:

  • ✅ Use broker comparison tools (no credit check)
  • ✅ Visit lender websites to see advertised rates (no credit check)
  • ✅ Talk to brokers about your situation (no credit check)
  • ❌ DON'T submit multiple applications (each is a hard inquiry)

Best practice: Compare 83 lenders, then apply to just 1-2 of the best matches.

Can I negotiate a better rate with a lender?

Yes! Always negotiate. Here's how:

If new customer:

  • Get competing quotes from 2-3 lenders
  • Show Lender A that Lender B offered 0.20% lower
  • Ask "Can you match or beat that?"
  • Success rate: 50-70% get some discount

If existing customer:

  • Call once per year: "I'm seeing rates 0.30% lower elsewhere. Can you reduce mine?"
  • If front desk says no, ask for "retention team"
  • Be willing to actually refinance if they won't budge
  • Success rate: 70%+ get 0.10-0.30% discount

What's better: offset account or redraw facility?

Offset is better 90% of the time. Here's why:

Offset Redraw
Access to funds ✅ Instant ⚠️ 2-5 days
Flexibility ✅ Unlimited ⚠️ Some limits
Tax (investment) ✅ Safe ❌ Risky
Availability ⚠️ Variable only ✅ Variable + fixed

Get offset if: You're on variable rate (most people)

Get redraw if: You're on fixed rate and offset not available

How often should I compare/refinance my home loan?

Review annually. Refinance when beneficial.

Annual rate check: Once per year, compare your rate to current market rates.

  • If your rate is 0.30%+ higher: Negotiate with current lender OR refinance
  • If your rate is 0.10-0.29% higher: Negotiate discount with current lender
  • If your rate is within 0.10%: You're doing OK, stay put

Refinance if:

  • New rate is 0.30%+ lower (saves $2K-$5K/year on $600K loan)
  • Current lender won't negotiate
  • You can recoup refinance costs ($1K-$2K) within 12 months

Don't refinance if:

  • Difference is only 0.10-0.20% (not worth the hassle)
  • You're selling within 12 months anyway
  • You're on fixed loan with high break costs

Compare 83 Lenders in 60 Seconds

Our AI compares your situation against every lender's policies and pricing. Get matched to the 3-5 best loans for YOU - not just the advertised rates.

✓ Smart matching based on YOUR situation ✓ See actual rates you qualify for ✓ Compare all 12 factors, not just rate ✓ Free service
Compare Loans Now → 📞 Call: 0424 406 977

⚡ Most clients find savings of $3,000-$8,000/year

Ricky Esteb - Licensed Mortgage Broker
Richard (Ricky) Esteb
Licensed Mortgage Broker & Founder
Credit Rep #574071 ACN 681 636 056 83+ Lender Panel

With direct experience helping Australians secure home loans, car finance, and business funding, Ricky founded Esteb and Co to bring transparency and technology to mortgage broking. Every piece of content is written from real-world lending experience.

✓ Verified & Last Reviewed: December 2025 | Content meets ASIC regulatory requirements
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