Loan features

How to compare home loans

Compare home loans by looking at rate, fees, features, lender policy, repayment structure, and your actual borrower goal.

Updated: 29 July 2026
Read time: 7 min read
Reviewed by: emoney broker team

Key checks before you decide

Reviewed by emoney broker team. Updated 29 July 2026. Sources are listed below.

Define the borrower goal before comparing rate, comparison rate, fees, features and lender policy.
Compare the same loan amount, term, fees, repayment type, and feature use across options.
Check how income, deposit, property, documents, credit history, and timing affect lender choice.
Use calculators to test assumptions before a broker reviews the real shortlist.

In this guide6 sections

Decide what the loan needs to do Compare costs and features together Check lender fit Use calculators to test the shortlist Watch for comparison traps Bring the shortlist to a broker

Decide what the loan needs to do

Define the borrower goal before comparing loans. Buying, refinancing, investing, debt restructuring, using equity and paying the loan down faster can each point to different features and lender questions.

For a first home buyer, deposit, LVR, pre-approval, buying costs, and settlement timing may dominate the conversation. For an existing borrower, current rate, fees, loan balance, fixed expiry, equity, and switch costs may matter more.

Without the goal, a comparison can drift into a rate table that does not explain whether the loan actually fits the borrower.

Write down the job the loan needs to do before comparing products. The job might be buying with a low deposit, reducing repayment pressure, keeping offset access, preparing for a renovation, using equity, or reviewing a fixed-rate expiry.

Comparison area	What to compare	Why it matters
Rate and comparison rate	Advertised rate, comparison rate, revert rate, and rate type.	The cheapest-looking rate may not show fees, expiry, or product fit.
Fees and costs	Application, package, annual, valuation, discharge, break, and settlement costs.	Costs can change the payback period or cash needed to switch.
Features	Offset, redraw, extra repayments, split loans, portability, and repayment changes.	Features only help when the borrower will use them.
Lender fit	Income type, documents, LVR, property, credit history, and loan purpose.	A strong table option may still be impractical for the borrower.
Timing	Pre-approval, settlement, fixed expiry, document readiness, and valuation timing.	A good option can fail if it cannot meet the real timeline.
Future plan	Selling, renovating, investing, using equity, or repaying faster.	The loan should fit the next likely decision as well as the first month.

What is the loan for?
How long do you expect to keep the loan?
Do you need offset, redraw, or extra repayment flexibility?
Is settlement timing or approval complexity important?

Compare costs and features together

Interest rate matters, but it should be compared with the comparison rate, application fees, ongoing fees, package costs, discharge costs, and the value of features the borrower will actually use.

A loan with offset, redraw, split options, or extra repayment flexibility may be worth discussing if those features fit the borrower. If the features are unlikely to be used, a simpler product may be more practical. Remember that a comparison rate uses a standardised example and may not reflect the borrower's actual loan amount or term.

The comparison should also include how the loan behaves over time. Repayment amount, total interest, remaining term, and fees can tell a different story from the headline rate.

For refinance, check whether the new repayment is lower because the rate is lower or because the loan term has been extended. For buying, check whether a feature-rich product increases costs before the borrower has enough spare cash to use the feature.

Interest rate and comparison rate.
Application, ongoing, package, and discharge fees.
Offset, redraw, extra repayments, and loan splits.
Repayment type, rate type, and loan term.

Broker note

Check lender fit

A product that looks strong in a comparison table may still be unavailable or impractical for a borrower. Lender fit can depend on income type, debts, property, deposit, loan purpose, documents, credit history, and timing.

For self-employed borrowers, low-deposit buyers, investors, complex income or credit issues, lender policy can matter as much as the pricing.

A broker review should test whether the lender is a realistic option before the borrower relies on the comparison.

Lender fit also includes the property and timing. Apartments, unusual titles, investment properties, construction, low deposits, short settlements, and refinance cash-out can all change the practical shortlist.

Does the lender accept the income type?
Does the property fit policy?
Are the documents ready enough for assessment?
Does the timeline fit settlement or refinance goals?

Example

Use calculators to test the shortlist

Calculators can make a comparison more concrete. They can show repayment differences, total interest, refinance payback period, offset impact, or upfront buying costs before the borrower speaks with a broker.

The useful habit is to test the same scenario across each option. Change one thing at a time, such as rate, fee, term, or offset balance, so the result does not become confusing.

Calculator results are estimates. They do not confirm product availability, lender approval, property valuation, or final loan pricing.

Keep a copy of the assumptions used in each scenario. This shows whether the comparison depends on a fee waiver, cashback, longer term, higher valuation or feature use that may not apply.

Use the same loan amount and term for repayment comparisons.
Include known fees where possible.
For refinance, compare payback period after switching costs.
For buying, compare repayments with upfront costs and cash buffer.

Next step

Want a broker to check this against your situation?

Share the loan goal, timing and a few key details. An emoney broker can then pick up the enquiry with the relevant context.Compare your options

Watch out

Watch for comparison traps

Home loan comparisons can go wrong when they focus on one number or ignore the borrower's next move. Cashback, honeymoon rates, fees, loan-term resets, and unused features can change the result.

A refinance can lower a repayment by extending the loan term, but that may increase total interest over time. A low-fee loan can be less useful if it lacks a needed feature. A cashback offer can help upfront but still needs to be assessed against rate, fees, and how long the borrower keeps the loan.

These are not reasons to avoid comparing. They are reasons to compare with the whole picture visible.

Another trap is comparing products before checking whether the borrower fits the lender. Income type, credit history, property, LVR, and timing can remove options that look attractive in a generic table.

Do not compare repayments without checking loan term.
Do not assume cashback makes the overall outcome stronger.
Do not pay for features you will not use.
Do not ignore discharge, break, or application costs.

Broker note

Bring the shortlist to a broker

A borrower can do useful preparation by comparing rates, fees, features, and calculator estimates. The broker conversation then checks the shortlist against real lender options and borrower circumstances.

A useful shortlist answers a broader question than 'which advertised rate is lowest?': does the loan fit the goal, documents, lender policy and timing?

Bring the current loan details, income context, debts, deposit or equity position, property details, and any preferred features. That gives the broker enough context to make the review practical.

A good shortlist does not need to include every lender. It needs enough detail for a broker to check whether the borrower is comparing real options under current policy rather than collecting attractive-looking rates.

The outcome may be to keep researching, prepare documents, reprice the current loan, or narrow the shortlist before lodging.

Bring current loan balance, rate, repayment, and fees if refinancing.
Bring income, debt, deposit, and property context if buying.
List the features you actually expect to use.
Ask what would make an option unsuitable.

Calculator next step

Home loan repayment calculator

Test whether a loan amount, rate, term, and repayment type feel workable before taking the numbers further.

Best for: Checking repayment comfort across purchase, refinance, or rate-change scenarios.
What it calculates: Weekly, fortnightly, or monthly repayments from loan amount, rate, term, frequency, and repayment type.

A broker still needs to check fees, comparison rates, offset or redraw settings, loan structure, and policy fit.

Open Repayments

Sources used

ASIC MoneySmart choosing a home loan
ASIC MoneySmartofficial sourceChecked 29 July 2026
ASIC MoneySmart mortgage calculator
ASIC MoneySmartofficial sourceChecked 29 July 2026
ASIC MoneySmart using a mortgage broker
ASIC MoneySmartofficial sourceChecked 29 July 2026
ASIC MoneySmart switching home loans
ASIC MoneySmartofficial sourceChecked 29 July 2026

General information only

This guide is general information and does not take into account your objectives, financial situation, or needs. A broker can review your circumstances before any recommendation.

Next step

Want a broker to check what applies to you?

Share the goal, timing and current loan context in Quick Check so the broker knows what needs reviewing.

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