Who are the top 10 home loan providers in Australia?

Naming Australia’s top 10 home loan providers is quite a challenge. That’s because the needs of borrowers vary widely, and some home loan providers and the home loan products they offer could be the best fit for some, but not others.

Perhaps you’re looking for a great deal on interest-only or low-interest rate home loans. Maybe you’re thinking about refinancing your current mortgage. Or you might be interested in a construction or green home loan to fund your dream property.

The experts at Compare Club can help you find the best home loan for your personal situation. In the meantime, we break down Australia’s top 10 home loan providers based on popular home loan types:

Best interest-only home loan providers: ANZ + WESTPAC

Interest-only home loans significantly lower your monthly repayments for a set period. They can be a great option for first-home buyers to get started, or for investors who want to minimize repayments on an investment property.   

ANZ offers a fixed rate home loan that allows you to apply for an interest-only period up to five years for owner/occupiers and up to 10 years for investors. It offers a competitive 7.05% p.a. comparison rate, and a discounted three-year fixed rate when borrowing 80% or less of the property value. 

WESTPAC also offers interest-only options on its variable loans. Comparison rates start from 7.77%. You can also use an offset account to further reduce the interest repayments on the loan.

Best low-interest rate home loan providers: UBANK

Variable rate loans often start with lower initial interest rates compared to fixed-rate loans. This can result in lower initial monthly payments, making home ownership more affordable, especially for borrowers who plan to sell or refinance before the interest rate adjusts.

UBANK offers variable rate home loans with interest rates from 6.14% p.a. for owner/occupiers. There are no annual fees, and borrowers can make and redraw additional payments at no extra cost. 

Best refinance home loan providers: NEWCASTLE PERMANENT + BOQ

Homeowners might choose to refinance their home loan to reduce their interest repayments or improve their loan terms. This typically involves replacing your current mortgage with a new refinance home loan. 

NEWCASTLE PERMANENT offers home loan refinance with two-year fixed interest rates from as low as 5.99% p.a. On the Premium Plus package. Successful applicants also receive $3,000 cashback. However, your current loan must have an LVR less than or equal to 80%. 

BOQ offers a refinancing option for loans of at least $250,000 with a maximum LVR of 80%. A competitive 6.18% p.a. variable interest rate can help borrowers reduce their monthly repayments,  and successful applicants get $2,000 cashback. 

Best construction home loan providers: SUNCORP + BANKWEST

Want to build a new home? You might need a construction home loan that is designed to finance the building of a new home. During the construction phase, the borrower typically receives funds in installments that are used to pay the builder at specified stages during the construction period. 

SUNCORP offers construction home loans with interest-only repayments during the construction phase. This helps to lower your repayments during the construction period while you may also be paying rent.

BANKWEST also offers construction home loans with interest-only repayments during construction. Construction loans may be available with no application fees, property valuation fees or progress payments fees. 

Additional resources

• Thinking about refinancing your home loan? Find out how much you could save with this refinancing calculator. 

• How much can you afford to borrow for your home loan? Assess your borrowing power. 

• Want to maximise your deposit savings? Use this handy budget planner to super-charge your savings. 

Sources

ANZ Fixed Rate home loan, ANZ

Rocket Repay: Variable home loan with offset, Westpac

Refinance your home loan, Newcastle Permanent

Refinance your home loan, Bank of Queensland

Construction loans, Suncorp

Construction loans, BankWest

Disclaimer

This guide is opinion only and should not be taken as financial advice. Check with a financial professional before making any decisions.

Anthony Stevenson, is the head of home loans at Compare Club. With over a decade of experience under his belt, Anthony is dedicated to helping individuals make informed decisions when choosing a home loan. Whether it's finding the best deals on your home loan or refinancing, Anthony has a wealth of knowledge in the space.

Meet our home loans expert, Anthony Stevenson

Anthony's top home loans tips

• 1

  Refinancing is the smartest, fastest way to lower your repayments and give yourself some breathing room.

• 2

  There’s more to a good value home loan than just interest rates. Are you paying high account keeping fees, or being charged for making extra repayments?

• 3

  Pre-approval and unconditional approval of your home loan are different parts of the same process. Our expert brokers cut through the jargon for you.

• 4

  Home loan pre-approval is not compulsory. It’s possible to begin your home loan application after you’ve found the home you want to buy.