The rates displayed above apply to applications for new owner-occupied home loans for loan amounts over $150,000 received from 22 December 2022 with principal and interest repayments and a minimum deposit of 30% for Low Cost, No Frills and Low Cost (Value Package) Home Loans and 20% for other Home Loans. Investment loans, interest only repayments and deposits of less than these amounts are available for some loans (subject to approval). Different interest rates apply. Contact us for more details.

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Home Loan FAQs

What is a mortgage?

A mortgage is a contract between you and a lender. In return for money lent to you to purchase a property, the lender will take a charge (or mortgage) over the property, as security for the borrowed funds.

If a borrower breaches the home loan contract terms set by the lender, for example not making the minimum home loan repayments, then the borrower can become in default to the lender.

The lender has the right to take your property if you fail to repay the money you’ve borrowed plus interest and any fees and charges.


How much can I borrow?

Your rough borrowing power can be calculated by subtracting your expenses from your net income. Expenses often include:

  • Living expenses: such as food, transport, and insurance
  • Financial liabilities: credit cards, loans, existing mortgages, and rental costs. Note: Lenders “buffer” or increase the normal costs of these debts in their assessment to safeguard against overcommitment should these costs rise over time.

Find out an estimate of your borrowing power using our borrowing power calculators.


What loan is best for me?

The best rate home loan for you will depend on a range of different factors including:

  • Your net income
  • Your financial commitments
  • Your future financial plans
  • Your own personal circumstances
  • Your requirements and objectives

There is no golden rule to finding the best bank for home loans. There are many different banks and lenders who offer a variety of loans. Depending on your individual circumstances, lifestyle and goals, it’s important to do your research and compare all your options before making a decision.  In your research you could find that what appear to be some of the best rates for home loans, may in fact come with various ongoing fees and charges which can add up over the life of the loan.

When doing your research, it’s important to consider more than just which lenders have the lowest home loan rates. There are many factors that can influence your decision to pick a particular home loan including whether the loan has a variable or fixed rate. Different types of borrowers may benefit from variable and fixed loans, so it’s always recommended that you carefully consider all your home loan offers before committing to one.


What is the difference between a variable and fixed loan?

A fixed home loan is a mortgage loan where the interest rate is locked for a specific period of time. This means that for the duration of that period of time, your repayments will not be affected by the official cash rate set by the Reserve Bank of Australia or shifting market conditions. A fixed home rate offers certainty for the fixed period, allowing borrowers to budget more accurately and plan their expenses over a longer period of time to ensure repayments are met.

Meanwhile, a variable home loan has an interest rate that may increase or decrease over time. Variable home loans generally provide borrowers with greater flexibility, with many of these types of loans offering borrowers options to pay additional sums to pay off their loan faster and to redraw surplus funds.


How can I pay off my home loan faster?

It can be a good idea to look for practical ways to shorten the lifespan of your loan - and cut down on interest in the process.

Here are some popular ways to pay off home loans faster and build equity in your home:

  • Increase your number of repayments

Increasing the frequency of your repayments could allow you to decrease the amount that future interest will be calculated on.

  • Make additional repayments

If your home loan allows you to make extra repayments, you could consider channelling more money into paying off your mortgage. Bonuses, gifts, and tax returns deposited into your mortgage account (or offset account, if you have this facility) could shorten the length of your home loan as paying extra means your loan will be repaid ahead of time and decrease the amount of interest you pay over the term of your loan.

Use our extra repayment calculator to find out how making additional repayments could reduce the interest payable on your mortgage.

  • Open an offset account

Offset accounts work as a transaction account linked to your home loan. The money in that account ‘offsets’ daily against the balance of your loan. So, it reduces the interest you need to pay because interest is only charged on your net balance (i.e. your overall loan balance minus your offset account balance). In other words, the loan ‘thinks’ you've paid that money off your loan already, reducing the interest charged accordingly. Qudos Bank offers multiple offset accounts on most home loans, check with your lending specialist.

  • Identify ways you can cut back on extra expenses

Cutting back on non-essential expenses is often a necessary first step to paying off your home loan faster. What these extra expenses look like will depend on you and your circumstances. However, preparing a budget can empower you to track your monthly spendings and identify expenses that you could realistically reduce.


Want more help? Get in contact with Qudos Bank


 

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Footnotes:

  • 1 Excludes existing loans, switching and variations. These offers can be withdrawn by Qudos Bank at any time. Rates displayed above are available for applications received from 22 December 2022 for loan amounts over $150,000. Minimum deposit of 20%. For interest only loans, the rate shown is the rate that applies during the interest only period of your loan. At the end of the interest only period, the variable rate reverts to the interest rate applicable to a new principal and interest No Frills Home Loan with a deposit or equity of 20% or more, currently 4.59% for owner occupied loans and 5.09% for investment loans. Interest only available for 1 to 5 years and is subject to approval.
  • 2 WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. Our comparison rate assumes a loan of $150,000 for 25 years. For interest only loans, the comparison rate is based on a 5-year interest only period, reverting to the interest rate applicable to a principal and interest loan with a deposit of 20% or more for the relevant purpose.
  • 3 Excludes existing loans, switching and variations. These offers can be withdrawn by Qudos Bank at any time. Rates displayed above are available for applications received from 22 December 2022​​ for loan amounts over $150,000. Minimum deposit of 10%. For interest only loans, the rate shown is the rate that applies during the interest only period of your loan. At the end of the interest only period, the variable rate reverts to the interest rate applicable to a new principal and interest Low Cost Home Loan with a deposit or equity of 20% or more, currently 4.99% for owner occupied loans and 5.29% for investment loans. Interest only available for 1 to 5 years and is subject to approval.
  • 4 Excludes existing loans, switching and variations. These offers can be withdrawn by Qudos Bank at any time. Rates displayed above are available for applications received from 22 December 2022​​ for loan amounts over $150,000. Minimum deposit of 10%. For interest only loans, the rate shown is the rate that applies during the interest only period of your loan. At the end of the interest only period, the variable rate reverts to the interest rate applicable to a new principal and interest Low Cost Value Package Home Loan with a deposit or equity of 20% or more, currently 4.89% for owner occupied loans and 5.19% for investment loans. Interest only available for 1 to 5 years and is subject to approval.
  • 5 Rates displayed above are available for applications received from 22 December 2022​​ for loan amounts over $150,000. Minimum deposit of 10%. Fixed rate may change prior to funding. On expiration of the fixed rate period, the interest rate reverts to a variable rate currently 4.99% for Owner Occupier and 5.29% for Investment home loans. Excludes existing loans, switching and variations. These offers can be withdrawn by Qudos Bank at any time.
  • 6 WARNING: The comparison rates apply only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rates assume a loan of $150,000 for 25 years. For fixed rate loans, the comparison rate is based on the initial fixed period, reverting to 4.99% for owner-occupied loans and 5.29% for investment loans. For fixed interest only loans, the interest only period is equal to the fixed period.
  • 7 Excludes existing loans, switching and variations. These offers can be withdrawn by Qudos Bank at any time. Rates displayed above are available for applications received from 22 December 2022​​ for loan amounts over $150,000. Minimum deposit of 5%. For interest only loans, the rate shown is the rate that applies during the interest only period of your loan. At the end of the interest only period, the variable rate reverts to the interest rate applicable to a new principal and interest Standard Variable Home Loan with a deposit or equity of 20% or more, currently 5.69% for owner occupied loans and 5.99% for investment loans. Interest only available for 1 to 5 years and is subject to approval.
  • 8 Excludes existing loans, switching and variations. These offers can be withdrawn by Qudos Bank at any time. Rates displayed above are available for applications received from 22 December 2022​​ for loan amounts over $150,000. Minimum deposit of 10%. For interest only loans, the rate shown is the rate that applies during the interest only period of your loan. At the end of the interest only period, the variable rate reverts to the interest rate applicable to a new principal and interest Qantas Points Home Loan with a deposit or equity of 20% or more, currently 5.19% for owner occupied loans and 5.49% for investment loans. Interest only available for 1 to 5 years and is subject to approval.

* Qantas Points accrue in accordance with and subject to the Qantas Points Banking Terms and Conditions. You must be a member of the Qantas Frequent Flyer program to earn and redeem Qantas Points. A joining fee may apply, however, Qudos Bank has arranged to provide Qantas Frequent Flyer membership with the joining fee waived to Qudos Bank members who are not already a Qantas Frequent Flyer member and who apply at qantas.com/joinffqudos. Membership and the earning and redemption of Qantas Points are subject to the terms and conditions of the Qantas Frequent Flyer program available online at qantas.com/terms. This offer is non transferable and not available in conjunction with any other offer. Qantas Frequent Flyer membership and each application is subject to approval by Qantas. Qudos Bank recommends that you seek independent tax advice in respect of the tax consequences (including fringe benefits tax, and goods and services tax and income tax) arising from the use of this product or from participating in the Qantas Frequent Flyer program or from using any of the rewards or other available program facilities.

Qudos Bank is the issuer, offeror and administrator of the Qantas Points Banking Products and is a credit provider and credit licensee under National Consumer Credit laws.


Normal lending criteria, terms and conditions and fees and charges apply. Mortgage insurance is required for home loans over 80% and is subject to approval.

Interest only subject to approval. During an interest only period, your interest only payments will not reduce your loan balance. This may mean you pay more interest over the life of the loan.

You should read and consider the relevant terms and conditions (available on request) and our Financial Services Guide before deciding whether to obtain any of our financial products or services.

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