Current Mortgage Rates Australia
Cash-rate context, dated lending-rate averages and tools for comparing repayment estimates.
Current Rate Environment
The Reserve Bank of Australia (RBA) increased the cash rate by 0.25 percentage points on 29 September 2026 to 4.60%, effective 30 September 2026. It is a benchmark that influences home loan rates, though lenders decide separately whether and when to change their advertised rates.
Read the September decision and repayment example. Use the rate on your lender notice and your remaining loan term when estimating a payment.
RBA Cash Rate
4.60%
New owner P&I
6.17%
New investor P&I
6.32%
The housing figures are RBA market averages for principal-and-interest loans funded in June 2026. They combine fixed and variable loans and are not live product offers.
Cash-rate source checked 1 October 2026; June lending averages last checked 16 August 2026: RBA cash rate target overview and RBA lenders' interest rates. Read the May housing lending-rate update as the previous-month comparison; the figures above use the newer June table.
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.
- Compare a broker's recommendation. A broker can compare lenders on their panel, but panels and payment arrangements differ. Ask which lenders were considered, how the broker is paid and why the recommendation is in your interests. See the July 2026 ASIC review update.
- 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.