Best Home Loan Rates in Australia (April 2026): How to Find the Cheapest Mortgage

Overview

With the RBA cash rate at 4.10% following the March 2026 increase, home loan rates have risen across the board. However, significant differences exist between lenders — and knowing where to look can save you thousands per year.

Current Rate Landscape (April 2026)

Big Four Banks

As of April 2026, the lowest variable rates from the big four banks are in the mid-5% range. For example, competitive offers from major banks start from approximately 5.49% p.a. for refinancers, though standard variable rates are higher.

Fixed rates from the big four start from approximately 5.74% p.a. for one-year terms on owner-occupier loans with low LVRs.

Smaller Lenders

Smaller banks, credit unions, and online lenders typically offer lower rates than the big four. Comparison platforms show rates starting from approximately 5.08% to 5.24% p.a. from competitive non-major lenders.

The gap between the most expensive and cheapest lender can be 0.5-1.0% or more, which on a $500,000 loan translates to $2,500-$5,000 per year in interest savings.

How to Compare Effectively

1. Use the Comparison Rate

Australian law requires lenders to display a comparison rate alongside the headline rate. The comparison rate includes most fees and charges, giving a truer picture of the total cost. However, it assumes a $150,000 loan over 25 years — which may not match your situation.

2. Factor In All Fees

• Application/establishment fees: $0-$600 (many lenders waive these)
• Ongoing monthly fees: $0-$15/month
• Annual package fees: $0-$395/year
• Discharge fees: $150-$400 when refinancing or paying off

3. Consider Features You Need

• Offset account: Reduces interest by offsetting savings. Worth paying a slightly higher rate if you maintain a large balance.
• Extra repayments: Unlimited extra repayments without penalty are standard on variable loans but may be limited on fixed.
• Redraw facility: Access to extra repayments you have made.

4. Compare Total Cost Over Your Time Horizon

A loan with a lower rate but higher fees may cost more over 3 years than one with a slightly higher rate and no fees. Use our Loan Comparison Calculator to model the full picture.

Fixed vs Variable in April 2026

Variable Rates

Variable rates move with the market. With further rate rises possible in 2026, variable borrowers face the risk of higher repayments. However, variable loans offer flexibility (offset, extra repayments, ability to refinance without break costs).

Fixed Rates

Fixed rates provide certainty for 1-5 years. In the current environment where markets are pricing in potential further rate rises, fixing can provide a hedge. However, if rates eventually fall, you miss out on the reduction until your fixed term expires.

Split Loans

A common strategy is to split your loan — fix a portion for certainty and leave the rest variable for flexibility. This is particularly popular in uncertain rate environments.

How to Get a Better Rate

1. Ask your current lender — many borrowers pay more than necessary simply because they have not negotiated. Call your lender and ask for their best retention rate.
2. Get competing offers — approach 2-3 other lenders for formal quotes. Having a written offer strengthens your negotiating position.
3. Consider a broker — mortgage brokers compare dozens of lenders and can identify deals you may not find directly.
4. Improve your LVR — borrowers with lower LVRs (more equity) typically receive better rates.
5. Review annually — rates and competition change. Set a reminder to review your rate at least once a year.

Use Our Calculators

• Mortgage Repayment Calculator — see how different rates affect your repayments
• Loan Comparison Calculator — compare two loan options side-by-side
• Extra Repayments Calculator — see how offset accounts and extra payments reduce interest
• Borrowing Power Calculator — check how much you can borrow at current rates

Compare loans: Loan Comparison Calculator | Calculate repayments: Mortgage Calculator.

Sources: Canstar, Finder, Money.com.au, NAB, CBA, Westpac home loan rate pages (April 2026). Rates are indicative and subject to change — always confirm current rates directly with lenders.