Home loan rates Australia (May 2026)

Standard variable owner-occupier rates from 12 Australian lenders, sorted by comparison rate. All rates verified against published rate sheets as at 15 May 2026, following the RBA's 25 basis point hike to 4.35% on 5 May 2026.

The lowest advertised rate in this dated snapshot is 6.04% (5.95% comparison) from Unloan (CBA-backed). The cheapest Big Four product is 6.84% from CommBank's Extra Home Loan Variable. The gap between the listed online lenders and Big Four standard variable products in this snapshot is 0.80% — equivalent to ~$467/month on a $700k loan.

What changed on 5 May 2026

The RBA hiked the cash rate by 25 basis points to 4.35% on 5 May 2026 — the third consecutive hike of 2026. All four major banks (CBA, Westpac, NAB, ANZ) and Macquarie have confirmed full pass-through to existing variable customers, taking effect 15-22 May. The Big Four headline rates above reflect the post-hike position. Online lenders and non-banks typically take 7-10 business days to reprice; smaller-bank rates may still adjust further.

For full coverage of the decision, read our RBA rate-hike article.

How to actually compare

Headline rate matters most when the loan is large and the term is long. On a $700k 30-year loan, every 0.10% of rate is worth roughly $50 per month. But three other variables can flip that comparison:

• Offset balance. A 100% offset on $50k of savings is worth around 0.50% of rate equivalent on a $700k loan. Loans without offset (Unloan, Tic:Toc Live-In) only beat loans with offset if you'd never park more than ~$10k in offset anyway.
• Annual fees. A $395 package fee on a $700k loan equates to about 0.06% of rate. On a smaller $300k loan it's about 0.13%. Loan size shifts the value of fee-bearing packages substantially.
• Cashback. Refinance cashback offers ($1,500–$4,000 typical) cycle in and out. A $3,000 cashback against a rate that's 0.30% above the cheapest available costs about $1,800 per year in extra interest — wiping out the cashback inside 18 months.

Once you've shortlisted 2-3 products, run them through the Loan Comparison Calculator at your actual loan size and term. The calculator computes total interest paid over the life of each loan, including the impact of fees and the offset effect.

What's not on this page

We don't list every Australian lender. Specifically not included:

• Fixed-rate products (separate rate environment, break-cost risk)
• Investor variable rates (typically +0.20–0.40% above owner-occupier rates)
• High-LVR rates (above 80% LVR — typically include LMI premium considerations)
• Construction loans, bridging loans, line-of-credit products
• Customer-owned banks (Heritage, Beyond Bank, etc) and mutuals — covered separately when we have verified post-hike data

A mortgage broker can compare products available through their lender panel and assist with an application. Ask which lenders are not on the panel, how the broker is paid and why the recommendation is in your interests. Read the July 2026 ASIC mortgage broker review update and the Best Interests Duty glossary entry.

Calculator suite

Once you have a rate in mind, model the rest of the picture:

• Home Loan Refinancing Checklist — switching costs, documents, term checks and settlement steps.
• Mortgage Repayment Calculator — monthly repayment, total interest, amortisation chart and table.
• Borrowing Power Calculator — a general capacity estimate using a transparent site living-cost floor and APRA-style rate buffer, not a lender HEM or approval model.
• LMI Calculator — premium estimate when borrowing above 80% LVR.
• Extra Repayments Calculator — interest saved from paying down faster.
• Offset Account Break-Even Calculator: compare average balance savings with fees and any rate premium.
• Mortgage Stress Test — repayments at +0.5%, +1%, +2%, +3% (APRA buffer), +4%.