Finder makes money from featured partners, but editorial opinions are our own.
Finder’s home loans methodology
Here's how we determine our monthly best home loan picks by selecting the types of loans suitable for typical borrowers and then evaluating these loans based on interest rates and fees.
Every month, Finder examines the loans in our database and determines our best home loan rates for Australian borrowers. We select loans from our partner lenders, analysed according to a comprehensive, data-driven methodology.
Finder's best home loan categories
We find the best home loans for the following types of borrower:
First home buyers
Borrowers looking for their first loan to buy a home.
Refinancers
Existing borrowers looking to switch to a better deal.
Investors
Property investors looking for a better investment loan.
To ensure all our home loan picks are suitable for a typical borrower, we filter the loans in our database using the following criteria:
Loan purpose. We do not consider investor loans when looking for the best home loan for first home buyers or refinancers (and vice versa).
Loan-to-value ratio (LVR). A loan's LVR shows how much you can borrow relative to your deposit. A standard deposit is 20%, so a standard LVR is 80%. For first home buyer picks, we only consider loans with LVRS of 90% or higher, meaning borrowers can get these loans with smaller 10% deposits. Refinancers, who have built equity, can get loans with much lower LVRs.
Loan amounts. We filter out loans with unusually low maximum loan amounts to ensure our home loan picks are loans most borrowers can actually use.
Rate type. We filter the home loans into variable and fixed interest rate categories to make a fairer comparison.
While we examine 100s of home loans in our database, our best home loan picks are taken from lenders with whom Finder has a commercial partnership.
Our lenders represent a wide range of market participants, including banks and smaller online lenders.
Methodology
Once we've selected the eligible home loans we rank and score them according to 2 key factors:
Interest rate
The lower the interest rate, the lower your loan repayments and the less interest you pay. This is the number 1 factor we consider when determining our best loans.
Loans with the lowest rates receive a higher score.
Loan fees
A home loan's fees can really add to a borrower's costs. We add up the upfront fee costs for each loan, including application, settlement, and valuation fees, plus ongoing monthly fees.
Loans with the lowest total fees receive a higher score.
We use a weighted methodology that puts more emphasis on the interest rate than the fees. This reflects the fact that the interest rate has a much greater impact on a borrower's overall loan costs.
In-depth methodology for each home loan category
We apply the same basic principles for each best home loan category, but the selection criteria and methodology differ slightly for each category.
Selection criteria
Loan purpose: Owner-occupier.
LVR: 90% or higher.
Rate type: Variable rate.
Repayment type: Principal-and-interest.
Methodology
Scores are determined by:
The interest rate (the lower the rate, the higher the score.
Combined cost of multiple loan fees (the lower the total cost, the higher the score).
Selection criteria
Loan purpose: Owner-occupier.
LVR: 90% or higher.
Rate type: Fixed rate.
Repayment type: Principal-and-interest.
Methodology
Scores are determined by:
The interest rate (the lower the rate, the higher the score.
Combined cost of multiple loan fees (the lower the total cost, the higher the score).
Selection criteria
Loan purpose: Owner-occupier.
LVR: 60% or higher.
Rate type: Variable rate.
Repayment type: Principal-and-interest.
Methodology
Scores are determined by:
The interest rate (the lower the rate, the higher the score.
Combined cost of multiple loan fees (the lower the total cost, the higher the score).
Selection criteria
Loan purpose: Owner-occupier.
LVR: 60% or higher.
Rate type: Fixed rate.
Repayment type: Principal-and-interest.
Methodology
Scores are determined by:
The interest rate (the lower the rate, the higher the score.
Combined cost of multiple loan fees (the lower the total cost, the higher the score).
Selection criteria
Loan purpose: Investor.
LVR: 80% or higher.
Rate type: Variable rate.
Repayment type: Principal-and-interest.
Methodology
Scores are determined by:
The interest rate (the lower the rate, the higher the score.
Combined cost of multiple loan fees (the lower the total cost, the higher the score).
Selection criteria
Loan purpose: Investor.
LVR: 80% or higher.
Rate type: Fixed rate.
Repayment type: Principal-and-interest.
Methodology
Scores are determined by:
The interest rate (the lower the rate, the higher the score.
Combined cost of multiple loan fees (the lower the total cost, the higher the score).
Richard Whitten is a money editor at Finder, and has been covering home loans, property and personal finance for 6+ years. He has written for Yahoo Finance, Money Magazine and Homely; and has appeared on various radio shows nationwide. He holds a Certificate IV in mortgage broking and finance (RG 206), a Tier 1 Generic Knowledge certification and a Tier 2 General Advice Deposit Products (RG 146) certification.
Guarantor home loan options can help you buy a home, with a family member acting as a guarantor on your home loan. Learn how it works and if you qualify.
How likely would you be to recommend finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Important information about this website
finder.com.au is one of Australia's leading comparison websites. We are committed to our readers and stands by our editorial principles
We try to take an open and transparent approach and provide a broad-based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market.
Some product issuers may provide products or offer services through multiple brands, associated companies or different labeling arrangements. This can make it difficult for consumers to compare alternatives or identify the companies behind the products. However, we aim to provide information to enable consumers to understand these issues.
We make money by featuring products on our site. Compensation received from the providers featured on our site can influence which products we write about as well as where and how products appear on our page, but the order or placement of these products does not influence our assessment or opinions of them, nor is it an endorsement or recommendation for them.
Products marked as 'Top Pick', 'Promoted' or 'Advertisement' are prominently displayed either as a result of a commercial advertising arrangement or to highlight a particular product, provider or feature. Finder may receive remuneration from the Provider if you click on the related link, purchase or enquire about the product. Finder's decision to show a 'promoted' product is neither a recommendation that the product is appropriate for you nor an indication that the product is the best in its category. We encourage you to use the tools and information we provide to compare your options.
Where our site links to particular products or displays 'Go to site' buttons, we may receive a commission, referral fee or payment when you click on those buttons or apply for a product. You can learn more about how we make money.
When products are grouped in a table or list, the order in which they are initially sorted may be influenced by a range of factors including price, fees and discounts; commercial partnerships; product features; and brand popularity. We provide tools so you can sort and filter these lists to highlight features that matter to you.
Please note that the information published on our site should not be construed as personal advice and does not consider your personal needs and circumstances. While our site will provide you with factual information and general advice to help you make better decisions, it isn't a substitute for professional advice. You should consider whether the products or services featured on our site are appropriate for your needs. If you're unsure about anything, seek professional advice before you apply for any product or commit to any plan and read any disclosure documents (such as any Target Market Determination (TMD) and/or Product Disclosure Statement (PDS)) issued by the provider before making a decision.
Providing or obtaining an estimated insurance quote through us does not guarantee you can get the insurance. Acceptance by insurance companies is based on things like occupation, health and lifestyle. By providing you with the ability to apply for a credit card or loan, we are not guaranteeing that your application will be approved. Your application for credit products is subject to the Provider's terms and conditions as well as their application and lending criteria.
Please read our website terms of use and privacy policy for more information about our services and our approach to privacy.
