Current home loan rates in Australia
Updated monthly · Last reviewed 29 July 2026
Where Australian home loan pricing actually sits this month — indicative variable and fixed ranges by borrower type, what sits behind them, and the levers that move your own rate. The RBA cash rate target is 4.35%, unchanged since 6 May 2026.
4.35%
RBA cash rate target
5.64%
Sharp owner-occupier variable, ≤80% LVR
August 2026
Next RBA decision due
Variable home loan rates — July 2026
Variable rates track lender funding costs and competition, which follow the cash rate but not mechanically. Note how much of the spread is driven by LVR and loan purpose rather than by the borrower shopping harder.
| Loan type | Indicative range (p.a.) | What moves you within the range |
|---|---|---|
| Owner-occupier, principal & interest | 5.64% – 6.34% | Sharpest pricing needs 80% LVR or lower, clean conduct and a full-doc income position. |
| Owner-occupier, interest only | 6.09% – 6.89% | Interest-only carries a margin over P&I on owner-occupied lending at almost every lender. |
| Investor, principal & interest | 5.89% – 6.59% | Investor loading is typically 0.20–0.30% over the equivalent owner-occupier rate. |
| Investor, interest only | 6.19% – 6.99% | The most common structure for investors, and the most heavily loaded. |
| Low deposit (85–95% LVR) | 6.14% – 6.99% | LVR-tiered pricing means high-LVR loans sit above the headline rate, plus LMI. |
| Specialist / non-conforming | 7.19% – 9.49% | Priced for credit impairment or alt-doc income; usually refinanced back to prime in 12–24 months. |
Fixed home loan rates — July 2026
Owner-occupier, principal & interest, 80% LVR or lower. Fixed rates are priced off wholesale swap markets, so they move on their own schedule — a fixed rate can fall in a month the cash rate rises, and vice versa.
| Loan type | Indicative range (p.a.) | What moves you within the range |
|---|---|---|
| 1 year fixed | 5.59% – 6.19% | Shortest fix — usually priced closest to variable. |
| 2 years fixed | 5.49% – 6.09% | The most commonly taken fixed term in Australia. |
| 3 years fixed | 5.49% – 6.19% | Where lenders price their view of the medium-term cash rate. |
| 5 years fixed | 5.79% – 6.59% | Rarely the cheapest; carries the largest break-cost risk. |
The rate is not the cost
Four things routinely outweigh a 0.10% difference in the headline number:
- Annual package fees of $0–$395 — a 5.90% loan with a $395 fee can beat a 5.84% loan with none, or lose to it, depending on loan size.
- Offset and redraw availability: an offset on a $600,000 loan with $50,000 parked in it is worth roughly $2,900 a year of interest at 5.9%.
- Cashbacks of $2,000–$4,000 look attractive but are usually clawed back inside 12–24 months if you refinance again.
- LMI on loans above 80% LVR is a one-off premium that dwarfs a 0.10% rate difference in year one.
Recent RBA cash rate decisions
| Decision date | Change | Cash rate after |
|---|---|---|
| 17 Jun 2026 | Hold | 4.35% |
| 6 May 2026 | +0.25% | 4.35% |
| 18 Mar 2026 | +0.25% | 4.10% |
| 4 Feb 2026 | +0.25% | 3.85% |
| 10 Dec 2025 | Hold | 3.60% |
| 5 Nov 2025 | Hold | 3.60% |
See the full RBA cash rate tracker and history
Work out what a rate means for you
Home loan rate FAQs
What is the average home loan interest rate in Australia right now?
With the RBA cash rate at 4.35%, sharp owner-occupier variable rates for a strong file at 80% LVR or lower sit around 5.64%–6.34% p.a. Investors and interest-only borrowers pay a loading on top, and high-LVR or specialist lending is priced higher again. These are indicative ranges across the lenders we deal with, not offers.
How often do home loan rates change?
Variable rates typically move within a few weeks of an RBA cash rate decision, but lenders are not obliged to pass on the full change and often reprice new business and existing loans differently. Fixed rates move independently and can change any week, because they follow wholesale funding markets rather than the cash rate directly.
Will my lender automatically give me the best rate?
Almost never. Lenders price aggressively to win new customers and rely on existing borrowers not asking. The gap between a new-customer rate and an unreviewed loan of a few years old is commonly 0.50%–1.00% — on a $600,000 loan that is roughly $3,000–$6,000 a year.
Should I fix my home loan rate now?
Fixing buys certainty, not savings. It makes sense if a stable repayment matters more to you than flexibility, and if you are unlikely to sell, refinance or make large extra repayments during the fixed term. Break costs on a fixed loan can be substantial, and most fixed loans limit extra repayments and offset.
How do you get a lower home loan rate?
The levers are LVR (getting under 80% is the biggest single step), loan size, clean repayment conduct, and simply asking — a repricing request to your existing lender is free and often works. If it doesn't, refinancing to a lender that wants your profile usually does.
Are the rates on this page offers?
No. They are indicative market ranges, reviewed monthly and last verified on 29 July 2026. Your actual rate depends on your lender, LVR, income type, credit conduct and loan purpose. We'll quote you real numbers from real lenders in a 15-minute chat.
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Rates last reviewed 29 July 2026. Indicative ranges only, not offers, and not financial advice. Cash rate figures are the RBA cash rate target. Verify any rate with the lender or with us before acting on it.