Things to know when negotiating a new home loan

Start with the market, not the offer

Before you phone anyone, work out where your loan sits. RateSonar records the rates lenders advertise, with the day each one was recorded. For standard owner-occupier variable loans (principal and interest) in the data as at 2 Nov 2026:

• The lowest advertised rate is 5.69%: Aaa Financial Corporation Portfolio Loan, for borrowers borrowing up to 90% of the property value.
• The middle advertised rate across 429 current standard loans is 6.74%.
• Half of those loans sit between 6.39% and 7.45%.
• The RBA cash rate target is 4.60%, in place since 30 Sep 2026.

Lenders that only accept members from one occupation or employer are left out of these figures, so every number here is from a lender you can usually join. These are advertised rates. They are what a lender publishes for new borrowers who meet its conditions, not a promise of what it will offer you. They are still the best public yardstick, and lenders know it.

The four major banks sit at different points on that scale. Each row below is that bank's lowest standard owner-occupier variable loan in the data:

Open each bank's page to see all its products: Commonwealth Bank, Westpac, NAB and ANZ.

What to pull up on RateSonar, and what to quote

Have four tabs open when you call or write.

1. Home loan rates. Filter to your loan type (owner-occupier or investor, principal and interest or interest only, variable or the fixed term you want). Quote the lowest rate and its lender by name, with the recorded date. Say "the lowest advertised rate I can find is 5.69% from Aaa Financial Corporation, recorded 2 Nov 2026". Then note the condition: for borrowers borrowing up to 90% of the property value. If your loan is larger than that condition allows, pick the lowest rate that fits your deposit instead.
2. Compare rates. Pick up to five lenders, including your own, and show the gap in dollars. A concrete dollar figure is harder to wave away than a percentage.
3. Rate changes. This shows which lenders moved a rate and by how much. In the 3 Oct 2026 to 1 Nov 2026 window RateSonar recorded 949 home loan rate changes across 97 lenders (930 rises and 19 cuts). If your lender has not moved while others have, say so.
4. Rate history. Check how your lender's advertised rate has moved since RateSonar began recording in June 2026. Before that, the page shows only the RBA's monthly market series, labelled as market context, not a lender quote.

Then ask a plain question: "Can you match or beat this?" Lenders often have discretion that is not on the website. If the answer is no, you have lost nothing and you know where to go next.

What a gap is worth in dollars

A small difference in rate adds up. On a $600,000 loan over 30 years (RateSonar's own calculation, principal and interest, rate held constant):

• At 6.74% the repayment is about $3,888 a month.
• At 5.69% it is about $3,479 a month, which is $409 a month or roughly $4,908 a year less.
• A quarter of a percentage point off the middle rate saves about $99 a month ($1,190 a year).

Your own figures will differ. Use a repayment calculator with your loan size, or the Moneysmart mortgage calculator.

Advertised rate or comparison rate

The advertised rate is the interest rate. The comparison rate folds in most fees and charges and is calculated on a standard example loan so lenders can be compared. A loan with a low advertised rate and heavy fees can cost more than one with a slightly higher rate and no fees. Ask for both, and read the comparison rate explained for what it leaves out. Moneysmart's own description is "a single figure that combines the interest rate and most fees".

Fees to ask about

Ask the lender to list every fee in writing, then ask which it will waive:

• application or establishment fee
• ongoing monthly or annual package fee
• valuation fee
• discharge or exit fee on the loan you are leaving
• fees for extra repayments, redraw or using the offset
• a break cost if you take a fixed rate and leave early

Moneysmart lists establishment fees and ongoing fees as the two main groups to compare, and says to ask whether extra repayments, loan features or early repayment carry a fee.

Offset and redraw

An offset account is a transaction account linked to your loan. Its balance reduces the amount you pay interest on, calculated daily. Redraw lets you withdraw extra repayments you have already made, if the lender's rules allow it. At the middle rate of 6.74%, $50,000 sitting in an offset reduces your interest by about $3,370 a year. A loan with an offset can carry a higher rate or a fee, so check that the saving is larger than the extra cost. Moneysmart suggests an offset may not be worth it if your balance is usually low, for example under $10,000. How offset accounts work has the detail.

Lenders mortgage insurance

If your deposit is under 20% of the property value, the lender may charge lenders mortgage insurance (LMI). It protects the lender, not you, and it can add thousands of dollars to your costs. Ask each lender for its LMI estimate, and ask whether it can be added to the loan. When you refinance with less than 20% equity, Moneysmart warns LMI can outweigh the savings from a lower rate, and says you can ask for a partial refund of the LMI on the loan you are leaving. See what LVR means.

Fixed or variable, and break costs

A fixed rate stays the same for a set period, usually one to five years, according to Moneysmart. As at 2 Nov 2026 the lowest advertised owner-occupier fixed rates in the data are:

Fixed loans can limit extra repayments and offset access, and Moneysmart notes you may pay a break fee if you switch loans, sell or repay early. Ask what the break cost formula is, and ask for an example. Do not assume a fixed rate is a good deal because it is lower than variable today. See fixed vs variable in 2026.

Refinancing cashback

Some lenders offer cash to switch. Treat it as one cost item, not the deal. Ask:

• What are the minimum loan size and the conditions?
• Is there a clawback if I leave within a set period?
• What is the rate and comparison rate once the cashback is excluded?
• Is the rate higher than the lender's best rate for new customers?

A cashback on a loan that costs more every month can leave you behind. Moneysmart's switching page does not cover cashback, so read the lender's terms. The refinancing checklist sets out the sums.

Before you sign

• Get the rate, comparison rate, fees and any discount in writing.
• Ask how long a discount lasts and whether it is a one-off.
• Ask what happens to your rate if you later ask for a better deal.
• Check the offset is linked to the loan after settlement. Moneysmart notes an ASIC review found some offsets were not linked properly.
• Test your repayments if the rate rises by 3 percentage points. Moneysmart suggests this check, and APRA's mortgage serviceability buffer is also 3 points.