Home Loan Interest Rates Australia: What’s on Offer Now (2026)

Home loan interest rates in Australia currently sit in an unusual spot — fixed rates have dropped below variable ones, which rarely happens. Here’s what lenders are actually charging, and what that gap means for borrowers.

Quick Answer: Home Loan Interest Rates

Home loan interest rates in Australia average 5.90% p.a. for variable loans across all lenders, per Mozo’s June 2026 data. The big four banks charge more, at 6.50–6.69% p.a., while non-bank lenders offer variable rates from as low as 5.69% p.a. Two-year fixed rates currently undercut variable ones, starting around 5.59% p.a. This is a snapshot, not financial advice — compare current rates with a broker or lender before committing.

1. Variable Home Loan Rates

• Average rate: 5.90% p.a. across all lenders, per Mozo.
• Most competitive: So non-bank lenders offer rates from 5.69% p.a., undercutting the big banks by a meaningful margin.
• Big four banks: However, CBA, Westpac, ANZ, and NAB collectively charge 6.50–6.69% p.a., noticeably above the market average.
• What that gap costs: So on a $600,000 loan over 30 years, the spread between cheapest and priciest lenders runs about $380 a month.

2. Fixed Home Loan Rates

• Current trend: Two-year fixed rates are priced below variable rates at many lenders right now, starting from around 5.59% p.a.
• Why that’s unusual: So fixed rates normally sit above variable ones. This inversion reflects the bond market pricing in future Reserve Bank rate cuts.
• What it signals: Because lenders are locking in cheaper fixed rates now, they clearly expect the cash rate to fall further over the loan term.
• Trade-off: So a fixed rate protects against future rises, but it also locks you out of any rate cuts that do arrive.

3. The RBA Cash Rate Context

• Current cash rate: 4.35% p.a. as of June 2026.
• Recent moves: So three consecutive 25 basis point increases landed in February, March, and May 2026.
• Why it matters: Because every lender’s variable rate moves off the cash rate, RBA decisions flow through to mortgage repayments within weeks.
• What to watch: So further RBA moves this year will likely shift both variable pricing and how far fixed rates sit below it.

Before You Compare Home Loan Interest Rates

• Check non-bank lenders, not just the big four. So the cheapest variable rates in the market currently sit outside CBA, Westpac, ANZ, and NAB.
• Run the fixed-vs-variable math yourself. Because a cheaper fixed rate today can still cost more overall if the cash rate falls further than lenders expect.
• Compare the full cost, not just the rate. So fees, offset accounts, and redraw flexibility can outweigh a small rate difference.
• A one percentage point gap adds up fast. So on a typical $600,000 loan, that’s roughly $380 extra a month over the loan’s life.

For related reading, see our guides to Best Savings Accounts UK: Top Rates Compared (2026) and Net Pay Calculator: The Formula and the Rate Change Some Pages Still Miss.

FAQ: Home Loan Interest Rates

What is the average home loan interest rate in Australia right now?
5.90% p.a. for variable loans across all lenders, per Mozo’s June 2026 data, though rates range from 5.59% to 6.69% depending on the lender and loan type.

Are big four bank home loan rates higher than other lenders?
Yes. CBA, Westpac, ANZ, and NAB charge 6.50–6.69% p.a. on average, while non-bank lenders offer rates from as low as 5.69% p.a.

Why are fixed home loan rates lower than variable rates right now?
Because the bond market expects the RBA to cut its cash rate later, lenders are pricing two-year fixed loans below current variable rates.

What is the RBA cash rate as of mid-2026?
4.35% p.a., following three 25 basis point increases in February, March, and May 2026.

How much difference does a 1% rate gap make on a mortgage?
On a $600,000 loan over 30 years, a one percentage point difference between lenders costs roughly $380 a month in extra repayments.

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