Interest Rates

Current Mortgage Rates Australia

An overview of the current interest rate environment and how to secure the best home loan rate in 2026.

Current Rate Environment

As of March 2026, the Reserve Bank of Australia (RBA) cash rate sits at 4.10%. This is the benchmark that influences home loan interest rates across the country.

RBA Cash Rate

4.10%

Big Four Variable

~5.49%+

Big Four Fixed (1yr)

~5.74%+

Smaller and non-bank lenders are typically more competitive, with variable rates starting from approximately 5.08–5.24% for well-qualified borrowers with an LVR below 80%.

Fixed vs Variable Rates

Variable Rate

  • Rate moves up or down with the market.
  • Typically offers more features: offset accounts, extra repayments, redraw.
  • Good if you expect rates to fall or want flexibility.

Fixed Rate

  • Rate is locked in for 1–5 years, providing repayment certainty.
  • Fewer features and often has break costs if you exit early.
  • Good if you want predictable repayments or expect rates to rise.

Many borrowers opt for a split loan, fixing a portion for certainty while keeping the rest variable for flexibility.

How to Get the Best Rate

  • Negotiate with your existing lender. Banks often offer retention discounts to prevent you from refinancing elsewhere. A quick phone call can save thousands over the life of the loan.
  • Compare across multiple lenders. Do not just look at the big four banks. Smaller lenders and non-bank lenders frequently offer lower rates. Use comparison tools to find competitive options.
  • Use a mortgage broker. A good broker has access to dozens of lenders and can find deals you would not see on your own. They are typically paid by the lender, so there is no cost to you.
  • Reduce your LVR. A loan-to-value ratio below 80% not only avoids Lenders Mortgage Insurance but also unlocks the best interest rates. Below 60% LVR often gets you the sharpest pricing.
  • Check the comparison rate. The comparison rate includes most fees and gives a truer picture of the loan cost than the headline rate alone.

Important Disclaimer

The rates listed on this page are indicative only and were current at the time of writing. Actual rates vary by lender, loan type, LVR, and individual circumstances. Always confirm the latest rates directly with lenders or a qualified mortgage broker before making financial decisions.