The rate is one line on the page. The right loan is twelve.
Comparison sites rank loans by advertised rate — the one number that's easiest to game and least likely to be the rate you'll actually get. A loan that costs a fraction more but has a real offset, no fee traps and a lender that will actually approve you can serve you far better over the life of the loan. Here's what to compare, in the order that matters, and how we narrow a panel of 50 lenders down to the few that fit your situation.
How our service works
Esteb & Co provides credit assistance. We're a licensed credit representative (Credit Rep #574071) accredited through Connective, and we help you compare loan options from our panel of 50 lenders — we don't lend money ourselves. Every approval is made by the lender, subject to their criteria and responsible-lending assessment. Our service is generally at no cost to you where the lender pays commission on settlement; where a fee applies we disclose it in writing before you commit.
Read our Credit Guide · We compare products from our 50-lender panel but do not compare all products or lenders in the market.
Twelve factors, weighted by how much they actually move the needle.
Rate matters — but it isn't everything, and it's rarely the number you're shown. The bars below are our relative weighting of what to compare, from the features that shape the whole cost of the loan down to the nice-to-haves. Detail on each is further down the page.
Weightings are our general, illustrative view of relative importance for a typical borrower — not a score for any particular product, and not personal advice. The right priority order depends on your circumstances and goals.
Why a rate-only comparison can point you at the wrong loan.
Three reasons the tidy league tables on comparison sites often mislead — and what to look at instead.
They rank on rate alone
Rate is important, but it's only part of the picture. A slightly higher rate with a full offset, no ongoing fee and unlimited extra repayments can leave you better off than a headline-cheap loan with none of those features.
They show rates you may not get
Advertised rates typically assume a strong deposit, clean credit and PAYG income. With a smaller deposit, a thinner credit file or self-employed income, the rate you're actually offered — or whether you're approved at all — can be different.
They ignore your goals
The best structure for a first-home buyer isn't the best for an investor or a refinancer. Interest-only and offset matter enormously to some borrowers and barely at all to others.
The twelve factors, one at a time.
Interest rate — variable, fixed or split
Your rate drives most of what you pay. Small differences compound: on a large loan over decades, a fraction of a percent is real money. But there's no single "market rate" — pricing moves with the RBA cash rate (currently 4.35%, held at the June 2026 board meeting) and varies by lender, deposit and loan size.
Variable
- Moves with the cash rate and lender pricing
- Flexible — usually offset + unlimited extra repayments
- Context: new owner-occupier variable rates averaged around 6.22% p.a. (RBA, May 2026) — indicative only, your rate depends on your file
Fixed & split
- Fixed locks repayments for 1–5 years — certainty, but usually less flexibility and possible break costs
- Split puts part fixed, part variable, so you hedge both ways
- Trade-off: fixed can sit above or below variable depending on where markets expect rates to head
Tip: don't chase an advertised number — ask what rate you qualify for on your deposit and situation, and always compare the comparison rate (rate plus standard fees) alongside the headline rate.
Offset vs redraw
Both let your spare cash reduce the interest you pay — but they behave differently, and the difference matters a lot for investors.
100% offset account
- How: a linked transaction account; its balance offsets your loan balance daily
- Access: instant, like a normal bank account
- Tax: generally cleaner for investors — it doesn't change the loan's purpose
- Where: most lenders, though often not on fixed portions
Redraw facility
- How: extra repayments sit in the loan; you redraw them if needed
- Access: can involve a short delay or limits
- Tax: redrawing can complicate deductibility for investors — get advice
- Where: very common, including on many fixed loans
Tip: a genuine 100% offset is often worth a slightly higher rate, especially if you keep meaningful savings. Check it's a full offset, not a partial one.
Extra repayments & flexibility
Being able to pay more when you can shortens the loan and reduces total interest. Variable loans usually allow unlimited extra repayments; fixed loans often cap them.
| Loan type | Extra repayments | Effect |
|---|---|---|
| Variable | Usually unlimited | Pay down faster, cut total interest |
| Fixed (flexible) | Often an annual cap (e.g. a set $ limit) | Some room to get ahead |
| Fixed (restrictive) | Little or none during the fixed term | Locked in — no early payoff |
Hypothetical example to show the effect of extra repayments — not a quote, forecast or promise of any particular outcome. Actual figures depend on your rate, balance, term and repayment behaviour, and rates change over time.
Tip: if you intend to pay your loan down quickly, avoid a structure that penalises extra repayments.
Lender policy fit — will they approve you
A sharp rate means nothing if the lender won't approve your situation. Credit policy varies widely between lenders — on income type, deposit size, property type and credit history. This is where a broker earns their keep: knowing who is likely to say yes.
| Your situation | Generally more open | Often harder |
|---|---|---|
| Self-employed (established ABN) | Major, regional & specialist lenders | Some online-only lenders |
| Casual / variable income | Selected majors & specialists | Stricter servicing lenders |
| Smaller deposit (higher LVR) | Lenders active in LMI / guarantee schemes | Lenders capped at lower LVRs |
| Past credit issues | Specialist / non-bank lenders | Most mainstream lenders |
| Unusual security (small units, etc.) | Some specialists | Many major lenders |
Tip: matching your file to lenders whose policy actually fits it protects your credit file — you apply where you're likely to be approved, not everywhere at once.
Interest-only option (for investors)
Investors often use interest-only periods to keep repayments lower during the hold and to align with their tax position. Availability, maximum IO term and the rate premium vary by lender.
| Lender type | IO available? | Typical max IO term |
|---|---|---|
| Major banks | Commonly yes | Often up to 5 years (sometimes longer) |
| Regional banks | Usually | Often around 5 years |
| Online / non-bank | Varies by lender | Often around 5 years |
Interest-only usually carries a rate premium over principal-and-interest, and reverts to P&I at the end of the IO period — so repayments step up. Whether it suits you is a tax and cash-flow question best worked through with your accountant.
Tip: if you're buying an investment property, weigh IO availability and terms carefully — but get tax advice before assuming it's the right structure.
Ongoing fees
Monthly or annual account/package fees add up over the life of a loan. A package fee can be worth it if it bundles an offset, fee waivers and a rate discount — or it can be dead weight. Weigh the fee against what it actually buys you.
| Lender style | Typical ongoing fee | Worth it when… |
|---|---|---|
| Basic / online products | Often $0 | You don't need a package's extras |
| Packaged loans | An annual package fee | The rate discount + offset + waivers outweigh the fee |
Tip: a small ongoing fee is roughly equivalent to a tiny rate difference — worth noting, rarely decisive on its own.
Upfront fees
Application, valuation and settlement fees range from nil to several hundred dollars, and many are negotiable or waived under promotions. Legal/conveyancing costs sit separately and are worth shopping around.
| Fee | Typical range | Often avoidable? |
|---|---|---|
| Application | Nil to a few hundred dollars | Often waived or discounted |
| Valuation | Nil to a few hundred dollars | Sometimes waived |
| Settlement | A few hundred dollars | Harder to avoid |
| Legal / conveyancing | Varies — shop around | Separate cost, not the lender's |
Tip: if you're keeping the loan for years, upfront fees matter less than rate and features — but ask for waivers anyway.
Exit & discharge costs
Ongoing exit fees on new variable loans were abolished in Australia in 2011, but discharge/administration fees still apply, and government mortgage-registration costs are payable. The big one to watch is fixed-rate break costs: leaving a fixed loan early — or making large extra repayments — can trigger a break fee that is potentially substantial, depending on how rates have moved.
Variable loans
- Discharge fee: typically modest
- Government fees: mortgage registration/discharge apply
- Freedom: refinance without a break cost
Fixed loans
- Break cost: can be significant if rates have fallen
- Calculated on the rate movement and time remaining
- Plan ahead: matters if you may sell or refinance mid-term
Tip: if there's a real chance you'll sell or refinance within a few years, think hard before fixing — and factor discharge costs into any comparison.
Approval speed & ease
Turnaround varies a lot by lender and by how complex your file is. Simple, well-documented applications move faster; complex income or credit histories take longer but may need a more flexible lender. Timeframes are indicative and depend on the lender's current service levels.
| Lender style | Indicative turnaround | Best for |
|---|---|---|
| Online / neo lenders | Faster for simple files | Straightforward situations, speed |
| Major banks | Moderate | Standard applications |
| Regional banks | Moderate | Flexible lending, not rushed |
| Specialist lenders | Slower, more manual | Complex situations |
Tip: buying at auction or on a tight settlement? Tell us upfront — turnaround becomes a first-order factor in which lender we recommend.
Customer service & support
How you'll actually deal with the lender over the years. Big banks offer branches and phone support but can be bureaucratic; online lenders are fast and app-first but branchless; regional and mutual lenders often win on personal service. Be honest about how you like to bank.
Tip: if you can't remember the last time you walked into a branch, an online-first lender probably won't bother you.
Split-loan capability
Splitting lets you fix part of the loan and keep part variable — hedging against rate rises while keeping some flexibility and offset on the variable portion. It adds a little complexity (sometimes an extra account fee) and only makes sense with a clear reason.
Tip: a split is a risk-management tool, not a default. Use it when you have a specific plan for each portion.
Portability
Portability lets you carry your existing loan to a new property when you move, potentially avoiding a new application and some fees. Useful in narrow cases — if you're moving soon and hold a rate you'd want to keep — but rarely worth sacrificing a better rate or features to obtain, since refinancing may serve you just as well.
Tip: nice to have, low priority. Don't let it drive the decision.
A quick comparison checklist.
Tick these off against any loan you're weighing up. It's a general guide, not personal advice — but it keeps you honest about the things comparison sites gloss over.
Should-haves
Nice-to-haves
All five should-haves? That's a strong fit — worth shortlisting.
Three or four? Keep looking; a better-fitting option usually exists.
Two or fewer? It's probably the wrong loan for your situation — start again.
From your situation to a shortlist that actually fits.
Tell us about you
Deposit, income type, property, credit history and goals. Takes a couple of minutes and needs no credit check to start.
We match on policy
We compare your situation against our 50-lender panel — pricing and, crucially, each lender's credit policy — to find the ones that actually fit.
See a real shortlist
A handful of genuinely suitable options, compared on the factors that matter — rate, features, fees and total cost — not just the headline number.
We handle the paperwork
Choose your preferred lender and we manage the application through to settlement. Generally at no cost to you — the lender pays commission.
Comparing home loans, answered straight.
What's the most important factor when comparing home loans?
It depends on your situation, but as a general order: the interest rate you actually qualify for; offset and flexibility (your ability to reduce interest and pay down faster); and whether the lender's credit policy fits you (there's no point comparing a loan you won't be approved for). A loan a fraction of a percent higher but with a real offset and flexibility can serve you better than a cheaper one with no features.
Should I use a comparison website or a broker?
Comparison sites are useful for a quick look at advertised rates, but they show the rate you might get, not the one you will, and they can't tell you which lenders will approve your situation. A broker knows lender policies, can indicate who's likely to approve you, and handles the paperwork — and the service is generally at no cost to you because the lender pays commission. If your situation is simple and you have a strong deposit and clean credit, a comparison site may be enough; if there's any complexity, a broker usually adds more.
What's the difference between the interest rate and the comparison rate?
The interest rate is the rate used to calculate your repayments. The comparison rate combines the interest rate with standard fees into a single figure, calculated on a standard loan amount and term (in Australia, $150,000 over 25 years) so products can be compared on a like-for-like basis. Because it's based on that fixed scenario, the comparison rate is a guide rather than a precise reflection of your loan — for your situation, look at the actual rate, the actual fees and the total cost over the term.
How many lenders should I compare before choosing?
You don't need to personally approach dozens of lenders — that's what a broker or a comparison tool is for. Our process compares your situation across our panel of 50 lenders, narrows it to a shortlist of genuinely suitable options, and you review just those few in detail before choosing.
Does comparing loans affect my credit score?
Comparing options and discussing your situation with a broker does not affect your credit score — no credit check is needed at that stage. What affects your file is submitting formal applications, as each is recorded. Best practice is to compare widely first, then apply only to the one or two lenders that genuinely fit — which is exactly how we work.
Can I negotiate a better rate with a lender?
Often, yes. New borrowers can use competing offers as leverage, and existing borrowers can ask their lender's retention team for a review — being genuinely prepared to refinance strengthens your hand. A broker does much of this for you and knows current pricing across the panel. Outcomes vary by lender and by your circumstances, so there's no guarantee, but it's almost always worth asking.
Is an offset account or a redraw facility better?
For most owner-occupiers on a variable rate, a 100% offset is the more flexible choice — funds are accessible instantly and it's generally cleaner for investors because it doesn't change the loan's purpose. Redraw is common (including on many fixed loans) and works well too, but access can be slower and, for investors, redrawing can complicate deductibility. If you're on a fixed rate where offset isn't offered, redraw is the practical option. Speak to your accountant on the tax side.
How often should I review or refinance my home loan?
A yearly check is sensible — compare your current rate against the market and current lender pricing. If your rate is materially above what's available, negotiate with your lender or consider refinancing; if it's close, it may not be worth the effort. Weigh any switching costs and your plans (for example, if you're likely to sell soon, or hold a fixed loan with break costs) before moving. We're happy to run the numbers with you.
Compare the whole loan, not just the rate.
Tell us your deposit, income and goals — we'll compare your situation across 50 lenders and come back with a shortlist that actually fits, on the factors that matter. No credit check to start.
Check my options →