Home Loan in Australia

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A home is one of the biggest investments that an individual can make in their life. If you’re on the market to buy one to either live in or to use as an investment, you might need to take out a home loan. While buying a property outright with cash is possible, most Australians might not be financially able to do so. For this reason, most people prefer to take out a home loan to fulfil their property-buying needs. When you shop around for a loan, you will likely come up with questions about what kind of home loan best suits your needs. In this article, we will take a look at what a home loan is and some other things you should know before you embark on your home-buying journey.

Home Loan Borrowing Power Calculator

Home Loan Bank Offerings

LendersRate of InterestComparison RateRatings
UBank undefined Interest Rate

UBank Home Loan

5.59% - 6.23%

4.94% - 5.68%


UniBank undefined Interest Rate

UniBank Home Loan

5.79% - 6.49%

6.12% - 6.82%


Macquarie Group Limited undefined Interest Rate

Macquarie Group Limited Home Loan




Mortgage Ezy undefined Interest Rate

Mortgage Ezy Home Loan




MKM Capital undefined Interest Rate

MKM Capital Home Loan


5.49% - 5.5%


La Trobe Financial undefined Interest Rate

La Trobe Financial Home Loan

4.99% - 6.99%

5.26% - 7.24%


FirstMac undefined Interest Rate

FirstMac Home Loan

6.54% - 6.74%

5.9% - 6.3%


Better Mortgage Management undefined Interest Rate

Better Mortgage Management Home Loan




Liberty Financial Pvt Ltd undefined Interest Rate

Liberty Financial Pvt Ltd Home Loan

5.09% - 5.19%

5.16% - 5.48%


Keystart undefined Interest Rate

Keystart Home Loan

6.76% - 6.86%



National Australia Bank undefined Interest Rate

National Australia Bank Home Loan

4.99% - 7.92%

4.53% - 7.88%


Westpac Banking Corporation undefined Interest Rate

Westpac Banking Corporation Home Loan

5.84% - 6.79%

7.04% - 7.65%


St.George Bank undefined Interest Rate

St.George Bank Home Loan

5.94% - 6.94%

6.8% - 7.76%


Pepper Money undefined Interest Rate

Pepper Money Home Loan

5.14% - 6.09%

5.33% - 5.51%


ING Australia undefined Interest Rate

ING Australia Home Loan

4.34% - 6.35%

4.36% - 6.37%


Suncorp Group undefined Interest Rate

Suncorp Group Home Loan




Resimac undefined Interest Rate

Resimac Home Loan

4.54% - 5.04%

4.64% - 5.14%


Bank of China undefined Interest Rate

Bank of China Home Loan

4.39% - 5.29%

4.44% - 4.97%


Citi Australia undefined Interest Rate

Citi Australia Home Loan

4.49% - 6.49%

4.85% - 5.7%


People's Choice Credit Union undefined Interest Rate

People's Choice Credit Union Home Loan

4.29% - 5.94%

4.3% - 5.44%


QBANK undefined Interest Rate

QBANK Home Loan

6.29% - 6.69%

6.35% - 6.73%


Teachers Mutual Bank undefined Interest Rate

Teachers Mutual Bank Home Loan

5.79% - 6.49%

6.48% - 7.17%


Australian Military Bank Ltd undefined Interest Rate

Australian Military Bank Ltd Home Loan




Bcu undefined Interest Rate

Bcu Home Loan




Bendigo Bank undefined Interest Rate

Bendigo Bank Home Loan




Credit Union SA undefined Interest Rate

Credit Union SA Home Loan

8.35% - 9.1%

6.82% - 7.1%


Defence Bank undefined Interest Rate

Defence Bank Home Loan




Firefighters Mutual Bank undefined Interest Rate

Firefighters Mutual Bank Home Loan




Health Professionals Bank undefined Interest Rate

Health Professionals Bank Home Loan




IMB Bank undefined Interest Rate

IMB Bank Home Loan

5.44% - 5.99%

5.5% - 6.27%


AMP Limited undefined Interest Rate

AMP Limited Home Loan

- 7.5%



Auswide Bank undefined Interest Rate

Auswide Bank Home Loan

4.9% - 6.39%

4.95% - 7.05%


Bank Australia undefined Interest Rate

Bank Australia Home Loan




Bank of Melbourne undefined Interest Rate

Bank of Melbourne Home Loan

- 6.09%



Bank of Queensland undefined Interest Rate

Bank of Queensland Home Loan

5.84% - 6.3%

5.66% - 6.18%


Bank of Sydney undefined Interest Rate

Bank of Sydney Home Loan

4.79% - 4.81%

4.21% - 4.16%


BankSA undefined Interest Rate

BankSA Home Loan

6.69% - 6.69%

8.01% - 7.65%


Bankwest undefined Interest Rate

Bankwest Home Loan




Beyond Bank Australia undefined Interest Rate

Beyond Bank Australia Home Loan

4.34% - 6.44%

4.37% - 7.38%


Bluestone Group undefined Interest Rate

Bluestone Group Home Loan

5.74% - 6.84%

5.82% - 7.03%


Commonwealth Bank undefined Interest Rate

Commonwealth Bank Home Loan

6.14% - 6.49%

7.45% - 7.96%


Great Southern Bank undefined Interest Rate

Great Southern Bank Home Loan

4.53% - 6.09%

4.58% - 6.8%


Heritage Bank Limited undefined Interest Rate

Heritage Bank Limited Home Loan




HomeStart Finance undefined Interest Rate

HomeStart Finance Home Loan

5.99% - 6.39%

5.97% - 7%


Hume Bank undefined Interest Rate

Hume Bank Home Loan

5.49% - 6.39%

5.25% - 6.59%


ME Bank undefined Interest Rate

ME Bank Home Loan

5.99% - 6.74%

7.12% - 8.07%


MyState Bank undefined Interest Rate

MyState Bank Home Loan

5.49% - 7.29%

6.92% - 7.44%


Newcastle Permanent Building Society undefined Interest Rate

Newcastle Permanent Building Society Home Loan

6.19% - 6.59%

7.16% - 7.49%


Virgin Money Australia undefined Interest Rate

Virgin Money Australia Home Loan

5.84% - 7.27%

5.58% - 6.43%


P&N Bank undefined Interest Rate

P&N Bank Home Loan

4.24% - 5.84%

4.25% - 5.38%


Bankfirst undefined Interest Rate

Bankfirst Home Loan




What is a Home Loan?

A home loan is an amount that a bank or financial institution lends to an individual borrower to facilitate the purchase of a property. The lender and the borrower will agree on loan repayment terms- usually for 25 to 30 years. Both parties also agree on the repayment schedule, which is usually fortnightly or monthly but can vary according to the agreement.

The borrower must also repay the interest amount in addition to the original principal. The loan agreement between the borrower and lender determines the type of interest rate applicable to the loan. There are various applicable interest rates, including fixed and variable interest rates.

This loan is generally secured against the market value of the property. This implies that if the borrower fails to keep up with their payment schedule or is unable to repay the loan amount, the lender can exercise their right to seize and sell the property in order to settle the debt.

Eligibility for Home Loan in Australia

While there is no secret formula to decode home loan eligibility in Australia, there are a few common factors that most lenders take into consideration while processing the loan application. Given below are some of the factors that affect your home loan eligibility in Australia:


The banks and lenders in Australia consider many factors to determine if the borrower is capable of comfortably repaying the loan amount without any defaults. It is called ‘serviceability’ in home loan terms. Usually, lenders in Australia are required to abide by the ‘Australian Prudential Regulation Authority’ rules which state that a lender is not allowed to let people borrow more money than they can afford to pay back.


Most lenders and banks in the country prefer lenders with a steady job and source of income. The evidence to back up the same varies according to the nature of your employment.

PAYG guide:

  • Payslips from the previous two pay cycles
  • Banks statements
  • Phone call to employer
  • Group Certificate or PAYG Summary

Self-employed guide:

  • Tax returns from the previous two financial years

Income and Existing Debt

Your income, expenses and existing debt plays a huge role in determining your home loan eligibility. Given below are some of the things a lender considers while determining your serviceability:

  • Income Streams: Salary, investment income, government payments, etc
  • Household Expenses: Bills, rent, insurance, car payments, etc
  • Miscellaneous Expenses: Groceries, petrol, holiday, alcohol, shopping, etc
  • Existing Debt: Pay later products, personal loans, credit cards, store finance, etc


The more you pay as a deposit, the better your money-saving track record for the lender. This can make your application look better. You can also lower the loan amount you need to borrow by making a larger deposit. Sometimes, the lender can also acknowledge larger deposits by offering lower interest rates.

Loan-to-Value Ratio (LVR)

The Loan-to-Value Ratio is a term used at the assessment stage of the loan approval, which describes the loan amount you need to borrow in comparison with the property's market value. Usually, lenders in Australia require your deposit contribution to be over 5% to be eligible for a home loan in Australia. Although, lenders may require the LVR to be above 20% for a home loan.

What are the Benefits of a Home Loan?

Given below are some of the main reasons a home loan seeker should compare loan offers from different lenders prior to signing on the dotted line:

Save Money on Interest

Interest rates are one of the most important factors to affect the total cost of borrowing a loan. If you do not take enough time to compare loan offers from different providers, you might end up paying a higher interest rate than average and miss out on more lucrative deals. Comparing home loans to find more favourable interest rates can help you save thousands of dollars throughout the loan tenure.

Save Money on Fees

In a home loan, it is not only the interest charges that tend to add to the overall cost of the loan. Some financial institutions may even charge multiple fees, which makes even a low-interest-rate option more expensive than anticipated. Regardless of why you are purchasing the property, home loan fees can rapidly eat away at your savings. Remember to compare the fees payable before applying for your next home loan.

Useful Features

Some home loan offers in Australia can be a basic, no-incentive option, and some may be loaded with helpful home loan features that make the loan offer more competitive. Some of the features may be:

  • Option to make extra repayments without incurring a penalty to pay off the loan amount faster
  • Some loan offers come with an offset account to lower the interest payable while also growing a nest egg
  • Some lenders offer a redraw facility which enables the borrower to access the extra repayments made on the home loan
  • You can split your home loan repayments while choosing between variable and fixed interest rates

Choosing the Right Lender

While comparing different loan offers, it’s also imperative that you choose the lender very carefully. In the past, Aussies have had very few choices about the type of home loan provider they want to borrow from. Recently, many more options have emerged in addition to the traditional institutions of the past. Bigger banking institutions may provide more options with respect to being a one-stop shop for all financial products. They might also offer great customer service through their vast network of branches and have a reputation for providing safe and secure services. On the other hand, smaller loan providers usually have fewer branches. This enables them to pass on the savings to their customers through lower interest rates and loan fees.

Find a Loan That Suits Your Needs

A basic home loan may only sometimes be suited to your financial situation, making it more important to compare options if you are self-employed or a business owner. If you apply for the wrong type of loan, which leads to a rejection, it can hamper your credit score and affect your chances of obtaining a loan.

Things to Know About a Home Loan in Australia

The Australian dream of owning a home is one riddled with difficulties, yet that doesn’t deter the few dedicated to establishing their name on the property ladder. If you are an aspiring homeowner, there are a few things that you should know before applying for a home loan since rejected applications can hurt the credit score:

You Need to be Able to Afford Repayments and More

When you make a loan application, the bank not only checks if you can afford the repayment and interest rates today but also if you can afford an increase in the interest rates. It is important to take this into consideration while preparing to make a home loan application in Australia.

The HECS-HELP Debt Impacts Your Borrowing Capacity

Your mandatory HECS repayments are considered while the bank calculates your capacity to repay the loan amount. So if you have any outstanding HECS-HELP payments or debt, it might lower the loan amount approved for you.

Limit Living Expenses

Nowadays, it is common for banks to demand a detailed budget of your living expenses to see if you are capable of paying back the home loan amount without additional financial stress. If they feel that you’re providing numbers which are too low, they’ll use their estimates gathered from average Australian household expenditure data.

You’ll Have to Prove Yourself

When presenting all the necessary information and documents for your loan, the financial institution will ask you to submit proof of your income and living expenses. Banks and lenders usually ask for the latest payslips or tax returns. They can also request identity documents such as passport, driver’s license, Medicare Card, etc. and copies of loan and credit card statements.

Documents Required for a Home Loan in Australia

When you are applying for a home loan in Australia, it pays to be prepared. It is important to do your research before applying for a home loan. Once you’ve made a home loan decision, you need to gather all the documents required to submit your loan application process. The documents you need depend on your home-buying situation, and the requirements vary from lender to lender. Given below are some of the documents you need to submit to obtain a home loan in Australia:

Personal Identification Documents

Any lender you approach will require you to verify your identity while processing the loan application. Given below are some of the widely accepted primary photo identification proof documents:

  • Passport
  • Driver’s Licence
  • Waterways/Boat Licence
  • Proof of Age Card
  • Australian tertiary institution ID card

In case you are not able to provide a primary identity document, lenders might require at least two forms of secondary identity documents. Some of the acceptable forms of secondary identification are:

  • Citizenship certificate
  • Medicare Card
  • Birth certificate
  • Credit Card
  • Debit/ATM card
  • Health Care Card

Income Details Documents

To obtain a home loan in Australia, you are required to prove that your income is adequate to repay the loan. Given below are the different ways you can verify your income depending on your employment circumstances:

Salaried Employee

  • Copies of two latest payslips
  • Copy of your latest Payment Summary from your employer


  • Tax returns of the individual and business
  • Latest two assessments from the Australian Taxation Office

Rental Income

  • Current or latest formal signed lease
  • Latest rental statement
  • Tax return statement from within 18 months of loan application

Depending on your lender, you may also require proof of other ongoing income, such as:

  • Bank accounts statements of rental income statements showing income from any investment property
  • Dividends and interest accrued
  • Statement of family tax benefits

Home Loan Situation

The documents that your lender might require for home loan processing also depend on your home loan situation, so keep the following documents handy:

First Home Buyer

  • Statements of your savings and investment history
  • Your latest credit card and bank account statements
  • Copy of the Contract of Sale for the property you wish to buy
  • Supporting documents showing are contributing to the deposit for the property, such as partial contribution by a family member, or monetary infusion via inheritance

Owner Occupier Home Buyer

  • Latest credit card statements
  • All home loan and personal loan statements from the previous six months
  • Investment and savings history from the previous six months
  • Contract of Sale copy for the property you are looking to purchase
  • Supporting documents regarding any other funds contributing to the deposit for the property


  • All home loan and personal loan account statements from the previous six months
  • All relevant documents and information regarding any existing home loan
  • The most recent Council Rates Notice & home building insurance policy for the property being used as collateral for the loan
  • Credit card statements from the previous six months


  • Rental statements
  • Recent Council Rates Notice and landlord/home building insurance policy for the property being used as security
  • Tenancy lease copy
  • Contract of Sale copy

Frequently Asked Questions

How much home loan amount can I borrow?

The home loan amount that you can borrow depends on a number of factors like your income, credit profile, loan-to-value ratio, deposit amount, etc

How much deposit do I need for a home loan?

As a thumb rule, you should make a deposit of at least 5% before applying for a home loan. Usually, banks prefer applicants with a deposit percentage of more than 20%.

How to refinance a home loan?

You can refinance a home loan by comparing home loan offers from other lenders, considering the cost of moving to a new provider, applying for a new home loan, and closing your previous home loan account.

How to calculate the home loan interest rate?

The interest on your home loan is usually calculated on a daily basis and then charged at the end of each month. The bank takes the outstanding loan amount at the end of each business day and multiplies it by the applicable interest rate. That amount is then divided by 365.


Why use us?

The customised financial services from UrbanMoney Oceania caters to the varying requirements of the applicant on their fund procurement journey.

Low interest rates

The intricate online model ensures the best interest rates are offered to the customers. The services aim to diminish the overhead costs.

Urban Money Oceania Exclusive Deals

The customers can avail of various exclusive offers available to the customers by UrbanMoney Oceania designed to cater to their budgetary needs.

Australian based support team

Our support team offers tailor-made services to customers intending to conclude loan transactions without any hassle. Available to customers at their convenience.


What Our Clients Say About Us

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Mr Roshanlal & Mrs Tina Gupta

Nishani and Tanmay's team is an excellent property mortgage expert who helped me buy our first investment and self-occupying homes. Being a first home buyer (investor and self-property owner both), it's essential to have a trusted property mortgage expert who can help complete this journey hustle free. Their wide range of mortgage products with a broader reach to the various lenders and their ability to help me understand various mortgage aspects/processes up to my satisfaction level was a great experience. Thank you, Tanmay and Nishani, for an excellent property mortgage purchasing experience. I highly recommend your services.

Dr Zafar Abbas Zaidi Syed

Something I really appreciate about your business and efforts is that you guys are very devoted with your responsibilities and always play in front to provide a best guidance to the customers. I think Nishani and Tanmay did a great job when you help me to take a first step for the mortgage for my first home, it showed that you had professional skills to take your customers ahead.


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