Interest rates are one of those things everyone seems to talk about. You might hear someone say, “I’ve got an amazing rate – only 5.7%!” Meanwhile, your other friend is on something in the 4% range because they locked in a few years ago, and your neighbour is convinced they’ve been robbed by the bank with their rate. Some may have started on 1.99% back in the covid days or others may be on a high interest rates in the 7% due to high risk and credit scores – But here’s the thing interest rates are personal. Just because your mate got a certain rate doesn’t mean you’ll get the same one. Why? Because no two situations are the same.
What Actually Affects Your Interest Rate?
Your home loan rate isn’t just plucked from thin air. It’s based on several factors, including:
- Loan amount – Larger loans can sometimes get better rates.
- Deposit size / Loan-to-Value Ratio (LVR) – The more equity you have, the lower the risk, which can mean a better rate.
- Credit score – A higher credit score can unlock more competitive offers.
- Property type & location – A one-bedroom apartment in the CBD is a different risk profile to a house in the suburbs.
- Lender appetite – Banks and lenders are always adjusting who they want to attract.
- Loan type – Fixed, variable, or interest-only loans can all come with different pricing.
- Loan term – A 30-year loan might have different rate options than a 15-year loan.
So, before you compare your rate to your friend, your parents, or even your hairdresser (who might be self-employed, making their loan situation completely different), remember – you’re comparing apples to oranges. The only way to truly know what’s available to you is to speak to an expert.
Bank vs. Broker – Who Should You Talk To?
Let’s face it, most people have been with their bank since they were 15, but just because they gave you your first ATM card doesn’t mean they’re the best option for your home loan.
In fact, 75% of Australians now use a mortgage broker, and for good reason. Here’s why:
The Benefits of Using a Mortgage Broker
✅ More Choice – Most broker has access to over 40 lenders, from the big banks to second-tier lenders and private lenders. Banks can only offer their own limited range of loans.
✅ Tailored Solutions – Brokers assess your full financial situation and find the best lender for you. Banks can take a one-size-fits-all approach.
✅ Better Negotiation Power – Brokers work with lenders daily and can often negotiate better rates or fee waivers.
✅ Time-Saving & Less Stress – Your broker does all the heavy lifting – from comparing loans to submitting paperwork and dealing with the lender.
✅ Ongoing Support – A great broker stays in touch and regularly checks if you’re still on the most competitive rate. Banks? Not so much.
✅ Rate Reviews & Refinancing – Your broker can go back to your bank to push for a lower rate or find a better lender if there’s a better deal available. A bank isn’t going to tell you about a better rate down the road with a competitor!
When Was Your Last Home Loan Health Check?
If you haven’t reviewed your home loan in the last 12 months, you could be paying more than you need to. Lenders change rates all the time, and if you don’t check in, you might be missing out on savings.
And if you’re just getting started on your home loan journey and unsure about deposits or borrowing power, now’s the time to chat. Whether you’re refinancing or buying your first home, getting expert advice could save you thousands.
So, before you compare your home loan to your best mate’s, let’s chat and find out what’s actually possible for you!
I’ve been a mortgage broker for nearly 15 years and help nearly 500 people every year with their home loan. I’ve seen so many different situations, some great and some not so great, some needing debt consolidation and just assistance with how to structure their loans – but the thing I love most about my job? Finding the perfect solution to ensure my customers have the greatest home loan for their situation.
Nothing makes me happier than saving people money and helping them transition through life, whether that’s upgrading their home, accessing cash to renovate, buying investment properties, paying down their mortgage faster, or even becoming debt-free. Financial goals are exciting, and I love working with people to help them achieve their dreams on the path to financial freedom.
Josh – Director of Mynt Financial – Lets chat?
