Lowest rate? Compare the whole home-loan quote

Moneysmart's comparison-website guidance, updated 17 August 2026, says comparison sites can be useful but are commercial businesses. Ranking criteria may be unclear, promoted products may be prioritised and not every lender or product is covered.

A low advertised rate is therefore a starting point, not a complete home-loan decision. The useful comparison is between personalised written quotes prepared on the same loan amount, loan term and repayment type.

Make every quote use the same inputs

Loan amount — compare the same amount borrowed, rather than mixing one lender's maximum with another lender's requested amount.

Loan term — use the same term because a longer term can lower the scheduled repayment while increasing total interest.

Repayment type — compare principal-and-interest with principal-and-interest, or clearly separate any fixed, variable or interest-only structure.

Moneysmart's comparison example

Moneysmart describes buyers considering a $650,000 apartment with a 20% deposit. They plan to borrow $520,000 over 25 years, compare rates, application and ongoing fees, and useful features, then ask two lenders for personalised written quotes.

The point is not that these figures suit every household. It is that the same assumptions make the quotes easier to compare and expose where a lower headline rate may be offset by fees, a different term or fewer useful features.

Four parts of the complete quote

Interest rate — the rate the lender uses to calculate interest on the loan balance.

Comparison rate — a single figure combining the interest rate and most fees, using a standardised example.

Fees — check application, package, annual, valuation and other ongoing or transaction charges that apply.

Features and restrictions — check the cost and access rules for offset, redraw, extra repayments and fixed-rate changes.

Before choosing

Build a four-column sheet for rate, fees, features and restrictions. Ask at least two lenders—or a broker comparing suitable options—to confirm the final terms in writing. A comparison rate helps, but it cannot decide whether the product's flexibility and total cost fit your circumstances.

Sources

Moneysmart — Choosing a home loan

Moneysmart — Using comparison websites

General information only. This is not financial advice. Loan options and eligibility depend on your personal income, liabilities, assets and lender assessment criteria.