How to compare home loan interest rates — what actually matters.

Comparing home loan rates is more than looking at the headline number. Here is what to look at, what to ignore, and how to find the genuinely best rate for your situation.

By Jason Given · April 2026 · 5 min read

Why the advertised rate is not the whole story

Lenders compete for attention with headline rates. The advertised rate is designed to attract clicks and enquiries — it is not necessarily the rate you will receive, and comparing rates across lenders without understanding the full fee and feature picture can lead to poor decisions.

The comparison rate is a more useful starting point. It combines the interest rate with most mandatory fees into a single annual percentage. But even the comparison rate excludes some costs — like offset account fees, annual package fees, and application fees — so it is not the complete picture either.

What to look at when comparing rates

✓Comparison rate: combines rate plus most fees — use this as your primary comparison metric
✓Annual package fee: some lenders charge $300 to $400 per year for a loan package with offset account — factor this into the total cost
✓Offset account availability: not all loans include an offset account — its absence costs you real money if you hold savings
✓Extra repayment flexibility: variable loans should allow unlimited extra repayments with no penalty
✓Break costs: fixed rate loans have break costs if you exit early — understand these before fixing
✓Cashback offers: some lenders offer $2,000 to $4,000 cashback to new borrowers — factor this into the true net cost

Why the best rate depends on your profile

The lender with the lowest advertised rate is not always the lender who will offer you the lowest rate. Lenders price differently based on your LVR, income type, loan size, property type and other factors. A non-bank lender may offer a lower rate than a major bank for a borrower with 20% deposit and PAYG income. A major bank may be more competitive for a borrower with a complex income structure.

Lendology compares your specific application across 60+ lenders — not just the advertised rates, but the actual rate each lender will offer you based on your profile. This is the comparison that matters, and it is one a rate comparison website cannot do.

The rate you see versus the rate you get

Many comparison websites show rates for owner-occupied, principal and interest, 80% LVR loans. If you are investing, fixing your rate, have a higher LVR or are self-employed, the rate you are offered may be materially different from what is shown. Always get a formal quote based on your actual situation before making a decision.

Frequently asked questions

What is a good home loan interest rate in Australia right now?

Rates change regularly with market conditions. Lendology monitors the market across 60+ lenders and can tell you what a competitive rate looks like for your specific situation. Book a free chat for a current market assessment.

What is the difference between the interest rate and the comparison rate?

The interest rate is the base rate charged on your loan balance. The comparison rate combines the interest rate with most mandatory fees into a single percentage, giving a more accurate picture of the loan's true cost. Always use the comparison rate when comparing loans.

Should I fix or stay variable given current rates?

This depends on your view of where rates are headed, your risk tolerance, and your need for flexibility. Lendology assesses both options based on current market pricing and your specific circumstances before making a recommendation.

How often do home loan rates change?

Variable rates change when the Reserve Bank moves the cash rate, or when individual lenders adjust their margins independently. Fixed rates change frequently based on wholesale funding costs and are not directly tied to RBA movements. Lendology monitors rate movements and alerts clients when action may be warranted.