How much difference does a higher or lower interest rate make?

When you borrow money to finance the purchase of a home, banks don't just hand the funds out for free. Not only will you have to pay back the money you borrow, but you'll also have to repay the interest that accumulates on that principal amount. When comparing home loans, checking out the current average home loan interest rate on this page gives you a quick and easy way to compare rates for different mortgages on the market at any given time.

What is the average interest rate on a mortgage?

Current mortgage interest rates depend on the type of mortgage and your personal circumstances. For example, a lower loan to value ratio (meaning you have a higher deposit or more equity in the home) usually qualifies you to receive a lower interest rate on your mortgage. The purpose of the loan impacts the price, too, as investment and interest-only loans are usually more expensive than residential owner occupier loans.

What will mortgage rates be in 2026 in Australia?

Interest rates fell three times throughout 2025 meaning most homeowners are paying less on their mortgage repayments than they were in 2024. The biggest question on everybody's lips though is what will happen next. At the beginning of November 2025, experts believed rates could continue to fall in 2026. But by the end of the month new data had made that unlikely. While we're still waiting to see what inflation will do next, experts are torn on whether rates could rise, fall or stay where they are over 2026.