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.
Bank comparison sites show you the wrong information. Here's why:
Bank comparison sites rank loans by interest rate. But rate is only 20% of what matters.
Advertised rates assume 80% LVR (20% deposit), perfect credit, and stable employment.
Best loan for a first home buyer is different than best for an investor or refinancer.
Match YOUR situation (deposit, credit, goals) to lenders' actual policies and pricing. That's what our algorithm does in 60 seconds.
Importance:
The actual interest rate you'll pay. 0.20% difference = $30K+ over 30 years on a $600K loan.
| 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 |
Importance:
HOW you can reduce interest and access your money. This matters as much as rate.
Importance:
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! |
Time to pay off: 30 years
Total interest: $679,190
Time to pay off: 19 years
Total interest: $418,200
Importance:
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 |
Importance:
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 |
Importance:
Cost to leave the lender. Important if you might refinance or sell within 3-5 years.
Cost: $0-$300
Freedom: Refinance anytime without penalty
Who: Most online lenders, some Big 4
Cost: $300-$800
Freedom: Can exit but costs a bit
Who: Some regional banks, Big 4
Cost: $5,000-$30,000+
Freedom: Locked in. Breaking is very expensive
Who: ALL fixed rate loans if rates drop
Importance:
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 |
Importance:
Low rate means nothing if the lender won't approve you. Policies vary wildly.
| 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 |
Importance:
How easy is it to get help when you need it?
Best for: People who value in-person service
Best for: Tech-savvy, self-service people
Best for: Value personal relationships
Importance:
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% |
$600K Investment Loan @ 6.5%
Plus: Higher interest = more tax deductions = more tax refund
Importance:
Ability to split your loan into multiple parts (e.g., 50% fixed, 50% variable).
Fix half your loan = protected if rates rise, but still benefit if rates fall (on variable half)
Variable split = offset + extras. Fixed split = certainty on repayments.
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)
Importance:
Can you transfer your loan to a new property if you move?
You sell Property A and buy Property B. Instead of:
You simply "port" your existing loan to Property B:
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)
Print this and use it when comparing lenders
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.
Your situation: deposit amount, employment type, credit score, property type, goals.
⏱️ Takes 60 seconds
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
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
Choose your lender. We handle the application for you. Most approvals in 5-10 days.
✓ Free service. Lender pays us, not you.
It depends on your situation, but generally:
A loan with 5.99% + offset + flexibility will save you more than 5.79% with no features.
Broker is better for most people. Here's why:
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.
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
Personally review: 3-5 lenders
Have broker compare: 32+ lenders
You don't need to personally call 32 lenders. That's what brokers and comparison tools are for.
Our process:
Just comparing = NO impact on credit score
Applying = YES, impacts credit score
How to compare safely:
Best practice: Compare 32+ lenders, then apply to just 1-2 of the best matches.
Yes! Always negotiate. Here's how:
If new customer:
If existing customer:
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
Review annually. Refinance when beneficial.
Annual rate check: Once per year, compare your rate to current market rates.
Refinance if:
Don't refinance if:
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.
⚡ Most clients find savings of $3,000-$8,000/year
