Rates last updated: 24 September 2026. This guide covers Australian home loans. It is general information only,
Australian Home Loan Rates at a Glance
| Rate | Latest figure |
|---|---|
| RBA cash rate | 4.35% (after rises in February, March and May 2026) |
| Lowest advertised variable rates (owner occupier, P&I) | around 5.4% to 5.9%, mostly from non bank and online lenders |
| Big four lowest advertised variable rates | around 6.09% to 6.25% |
| Lowest advertised fixed rates | from around 5.3% to 5.8%, depending on term and lender |
| Big four fixed rates | around 6.29% to 6.59% |
Sources: Reserve Bank of Australia, Canstar, Finder and Mozo rate data from September 2026. The lowest rates usually require a deposit of 20% or more and owner occupier, principal and interest repayments. Rates change often.
What is happening to rates?
After cutting the cash rate three times in 2025, bringing it down to 3.60%, the RBA reversed course in 2026. It raised the cash rate in February, March and May 2026, taking it to 4.35%, and then held it steady in June and August.
The next RBA meeting is on 28 and 29 September 2026, and financial markets and major bank economists widely expect another rise of 0.25 percentage points. RBA Governor Michele Bullock told a parliamentary hearing in September that some upside risks to inflation appeared to be materialising, pointing to higher oil prices linked to conflict in the Middle East. Headline inflation was running at around 3.8%, above the RBA’s 2 to 3% target band.
If the RBA raises rates at its September meeting, most lenders will pass the increase on to variable rates within a few weeks. We will update this page after the decision.
What Today’s Rates Mean for Your Repayments
Here are the monthly repayments on a $600,000 loan over 30 years, with principal and interest repayments:
| Rate | Example | Monthly repayment |
|---|---|---|
| 5.39% | Sharpest non bank variable | $3,365 |
| 5.89% | Low online lender variable | $3,555 |
| 6.09% | Lowest big four variable | $3,632 |
| 6.25% | Higher big four variable | $3,694 |
| 6.59% | Big four fixed | $3,828 |
Illustration only. Your repayment depends on your rate, loan size and loan term.
The gap between the sharpest rate and a typical big four rate is roughly $330 a month, or around $4,000 a year. Over the life of a loan, that can add up to tens of thousands of dollars.
A rise of 0.25 percentage points in the cash rate, if passed on in full, would add about $97 a month to a $600,000 variable loan at 5.89%.
How We Got Here: Rates Since 2020
During the pandemic, the RBA cut the cash rate to a record low of 0.10%, and some fixed home loan rates fell below 2%. As inflation surged, the RBA raised rates rapidly from May 2022, reaching 4.35% in November 2023, where it stayed for more than a year.
With inflation easing, the RBA cut three times in 2025, taking the cash rate down to 3.60% by August. But inflation picked up again, and the RBA lifted rates three times in the first half of 2026, returning the cash rate to 4.35%. RBA leaders have described current rates as a return to more normal long term levels after an unusually low period.
Rates for Different Borrowers
First home buyers. Many first home buyers have smaller deposits, which usually means higher rates or lenders mortgage insurance. The government’s 5% Deposit Scheme can help eligible buyers avoid LMI, although not every lender with the cheapest rates participates.
Refinancers. If you have built up equity and have a good repayment record, you are in a strong position to negotiate or switch. Some lenders offer cashback to refinancers, but look at the rate first.
Investors. Investor loans usually carry higher rates than owner occupier loans, and interest only investor loans are typically priced higher again.
Self employed borrowers. Rates can be similar to those for employees if you can provide two years of tax returns and financial statements. Low documentation loans are available from specialist lenders at higher rates.
Big Four Banks vs Non Bank Lenders
The big four banks (Commonwealth Bank, Westpac, NAB and ANZ) hold the largest share of Australian home loans, but they are rarely the cheapest.
| Lender type | Pros | Cons |
|---|---|---|
| Big four banks | Branch networks, full banking services, often participate in government schemes | Usually higher rates; existing customers often pay more than new ones |
| Smaller banks and mutuals | Competitive rates, customer owned options | Fewer branches |
| Non bank and online lenders | Often the lowest advertised rates, simple products | Fewer features and less face to face help; may not offer every government scheme |
| Mortgage brokers | Compare many lenders for you, usually at no cost | Recommendations depend on the lenders on their panel |
Research by comparison sites has found that existing customers at the major banks often pay 0.30 to 0.50 percentage points more than new customers at the same bank. On a $600,000 loan, that can mean more than $1,600 extra each year. This so called “loyalty tax” is one of the main reasons Australians refinance.
Understanding the Comparison Rate
In Australia, lenders must show a comparison rate alongside the advertised interest rate. The comparison rate combines the interest rate with most fees and charges into a single figure, calculated on a loan of $150,000 over 25 years.
A loan with a low headline rate but a high annual package fee can have a higher comparison rate than a loan with a slightly higher rate and no fees. Always compare comparison rates, but remember that they are based on a small standard loan, so the impact of fees on a much larger loan will be smaller.
Features That Affect the Real Cost
The cheapest rate is not always the best home loan. Consider these features:
- Offset account. A transaction account linked to your loan, where your savings reduce the balance you pay interest on. Very valuable if you keep large savings.
- Redraw facility. Lets you access extra repayments you have made.
- Extra repayments. Most variable loans allow unlimited extra repayments; fixed loans often cap them.
- Package fees. Some loans charge an annual fee, often around $395, in exchange for rate discounts and features.
- Split loans. Let you fix part of your loan and keep part variable.
Owner Occupier vs Investor, P&I vs Interest Only
Australian lenders price loans differently depending on how you use the property and how you repay:
- Owner occupier loans (for the home you live in) usually have lower rates than investor loans.
- Principal and interest (P&I) loans usually have lower rates than interest only loans.
- The lowest advertised rates are typically for owner occupiers, with P&I repayments and a loan to value ratio (LVR) of 80% or less.
If your deposit is below 20%, you will usually pay lenders mortgage insurance (LMI), unless you qualify for a government scheme such as the 5% Deposit Scheme.
Fixed or Variable: Which Rates Look Best Now?
In September 2026, fixed and variable rates are unusually close. Some lenders’ fixed rates are even slightly below their variable rates, because the market expects the cash rate to keep rising. That changes the usual trade off. Our guide on fixed vs variable home loans in Australia runs the numbers on different scenarios.
How to Get the Best Home Loan Rate
1. Compare widely
Look beyond your own bank. Get quotes from at least one big four bank, one smaller bank or mutual and one online or non bank lender, or use a mortgage broker.
2. Lower your LVR
A deposit of 20% or more usually unlocks the lowest rates and avoids LMI. Some lenders offer even better pricing below 70% or 60% LVR.
3. Check your credit report
Australia uses comprehensive credit reporting, so your repayment history on cards and loans matters. Pay everything on time and correct any errors.
4. Ask your current lender for a better rate
If you already have a loan, call your lender, mention the rates new customers are getting and ask for a reduction. Many borrowers get a lower rate with a single phone call.
5. Consider refinancing
If your lender will not move, refinancing to a cheaper lender can save thousands. Check discharge fees, any break costs on fixed loans and whether you would need LMI again.
6. Watch for honeymoon rates
Some lenders offer a low introductory rate that jumps after one or two years. Check the revert rate, not just the headline rate.
Costs to Check Before Switching
Refinancing to a lower rate can save money, but check these costs first:
- Discharge fee charged by your current lender, often a few hundred dollars.
- Break costs if you leave a fixed rate loan early, which can be significant when rates have fallen since you fixed.
- Application, valuation and settlement fees at the new lender, although many waive them.
- Government registration fees to discharge and register the mortgage.
- LMI if your new loan is above 80% of the property’s value.
Add these up and compare them with your expected annual savings to see how quickly the switch pays for itself.
Checklist Before You Apply
- Work out your deposit and LVR.
- Check your credit report with Equifax, Experian and illion.
- Gather payslips, tax returns, bank statements and details of your living expenses.
- Decide whether you want variable, fixed or split.
- Compare comparison rates, fees and features, not just headline rates.
- Check whether you qualify for government schemes.
- Get pre-approval before making offers.
Frequently Asked Questions
What is a good home loan rate in Australia right now?
In September 2026, owner occupiers with a 20% deposit may find variable rates from around 5.4% to 5.9% at non bank and online lenders, while the big four’s lowest variable rates start at around 6.09%. A good rate is one near the lower end of these ranges for your situation.
Will home loan rates go up in Australia?
The RBA’s next meeting is on 28 and 29 September 2026, and a rise of 0.25 percentage points is widely expected. Beyond that, no one can say for certain.
Why are big four rates higher?
The big four have large existing customer bases and strong brands, so they often compete less aggressively on price than smaller or online lenders.
What is the difference between the interest rate and the comparison rate?
The interest rate is what you pay on your loan balance. The comparison rate includes most fees and charges, giving a better idea of the true cost.
Are cashback offers worth it?
They can be, but a cashback of a few thousand dollars is quickly outweighed by a higher rate. Compare the total cost over several years before choosing a loan for its cashback.
Should I use a mortgage broker?
A broker can compare many lenders and handle the paperwork, usually at no cost to you because they are paid by the lender. Ask which lenders are on their panel and how they are paid.
How often should I review my home loan?
At least once a year, and whenever the RBA changes the cash rate. Rates offered to new customers are often lower than those paid by existing borrowers.
The Bottom Line
As of 24 September 2026, the RBA cash rate is 4.35%, with another rise widely expected at the end of the month. The lowest advertised variable rates for owner occupiers are around 5.4% to 5.9%, mostly from non bank and online lenders, while the big four’s lowest variable rates start at around 6.09%.
To get the best rate, compare widely, aim for an LVR of 80% or less, check comparison rates and fees, and do not be afraid to ask your current lender for a better deal. If you are unsure, a licensed mortgage broker can help you compare options.
Disclaimer: This article is general information only and does not take into account your objectives, financial situation or needs. It is not financial advice. Rates are sourced from the RBA and public comparison data for September 2026 and are not offers of credit. Consider whether any product is appropriate for you and read the relevant documents before deciding. Speak with a licensed credit provider or mortgage broker for advice.