Your loan & interest rate
Interest rates are important when you’re applying for a home loan, but rates aren’t the only factor to consider. When you have the right home loan that has features to suit your situation, you may be able to minimise fees and use your loan’s features to help you own your home sooner.
How interest rates are set
The Reserve Bank of Australia (RBA) sets the official interest rate to maintain a healthy economy, and this is one factor that banks take into account when determining lending rates for home loans, personal loans and credit cards. Learn more about how the RBA affects your interest rates and see the RBA’s Official Interest Rate and historical rates.
The first step is to choose the right home loan
Choosing the lowest interest rate does not always give you the best value. Instead, the right loan depends on your individual needs. For example, our low interest rate home loan, Basic Home Loan, provides excellent rates but has a ‘no frills’ approach for features.
Choosing a home loan with special features like our full interest offset facility or a split loan with both a fixed and variable interest rate component may mean that you pay a slightly higher interest rate, but you could end up saving on interest and owning your home sooner. It’s always worthwhile to compare Home Loan features before you choose your home loan.
Package and save
A good option might be our Advantage Package1, an all-inclusive package for your home loan, credit card and transaction account. For a low yearly fee (PDF 43KB), you could be eligible to receive interest rate discounts and can save up to thousands in interest and fees.1
How to compare rates
Comparing interest rates is complicated. Many people use the loan interest rate to compare different loans, however, that’s like comparing apples and oranges. The interest rate alone doesn’t take into account other costs like establishment fees and ongoing fees.
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Important information
Conditions, credit criteria, fees and charges apply. Based on St.George’s credit criteria, residential lending is not available for Non-Australian resident borrowers. Interest rates subject to change. Before making a decision, it’s best to read the terms and conditions.
Loan Accounts – Charges for specific services and accounts (PDF 43KB)
This information is general in nature and has been prepared without taking your objectives, needs and overall financial situation into account. For this reason, you should consider the appropriateness of the information to your own circumstances and, if necessary, seek appropriate professional advice.
1Advantage Package: Terms & Conditions (PDF 1MB) apply. A $395 annual package fee applies and is payable from an eligible St.George transaction account. Before deciding to acquire a St.George transaction account, read the terms & conditions, and consider if the product is right for you.