Interest rates in Australia

Currently the average Australian variable mortgage rate in Finder's database is 3.93%. Compare current interest rate averages with our lowest rates to see how much you could save.

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Interest rates in Australia change all the time. Currently mortgage rates have never been lower after multiple RBA decisions to lower the official cash rate.

In the table below you can compare the current average Australian interest rates for fixed and variable mortgages according to Finder's database. We also list the lowest rate offer currently available through Finder. Together, this data should give you a good snapshot of what Australian interest rates currently look like.

If you just want to see the cheapest loans, check out our lowest home loan rates page.

Average Australian interest rates versus the lowest rates

Australian interest rates October 2021Data
Average variable mortgage interest rate3.93%
Lowest variable rate available on Finder1.85%
Average 3-year fixed mortgage interest rate2.93%
Lowest 3-year fixed rate available on Finder1.79%
Average interest rate of a Finder app user3.30%

Rates are averages taken from all comparable loans in Finder's database, which covers a large portion of the Australian mortgage market, and from users of the Finder app. Lowest rates listed above are based on products from lenders with whom Finder has a commercial partnership.

Current Australian interest rates

While there are some rates on the market that may be lower, Finder lets you compare a range of competitive rates from lenders large and small.

$
years
Name Product Interest Rate (p.a.) Comp. Rate (p.a.) Fees Monthly Payment

UBank UHomeLoan Fixed P&IHome 1Y Fixed≥ 20% Deposit

UBank UHomeLoan Fixed
1.79%
2.18%
  • App: $0
  • Ongoing: $0 p.a.
$540
Fix your mortgage for 1 year with a very competitive rate and no ongoing fees.

HSBC Fixed Rate Home Loan Package P&IHome 2Y Fixed≥ 20% Deposit

HSBC Fixed Rate Home Loan Package
1.88%
2.87%
  • App: $0
  • Ongoing: $390 p.a.
$547
$3,288 refinance cashback offer
Lock in a low fixed rate for 2 years and buy your home with a 20% deposit. Eligible refinancers borrowing $250,000 or more can get a $3,288 cashback. Terms and conditions apply.

Nano Variable Home Loans P&IHome≥ 25% Deposit Refi Only

Nano Variable Home Loans
1.99%
1.99%
  • App: $0
  • Ongoing: $0 p.a.
$555
Switch to this competitive variable rate with zero fees. Requires a 25% deposit.

Suncorp Home Package Plus Fixed P&IHome 2Y Fixed≥ 20% Deposit

Suncorp Home Package Plus Fixed
1.89%
2.85%
  • App: $0
  • Ongoing: $0 p.a.
$548
$3,000 refinance cash bonus
Lock in a low fixed rate for 2 years. Available with a 20% deposit. Eligible new borrowers can get the annual package fee reimbursed for the life of the loan. $3,000 refinance cash bonus for eligible borrowers. Other terms, conditions and eligibility criteria apply.

loans.com.au Smart Booster Discount Variable Home Loan P&IHome≥ 20% Deposit

loans.com.au Smart Booster Discount Variable Home Loan
1.85%
2.21%
  • App: $0
  • Ongoing: $0 p.a.
$545
Get a low discounted variable rate loan. Requires a 20% deposit. Get your loan processed fast and settle within 30 days.

IMB Fixed Rate Home Loan P&IHome 2Y Fixed≥ 5% Deposit

IMB Fixed Rate Home Loan
1.97%
2.88%
  • App: $449
  • Ongoing: $6 per month
$554
NSW and ACT customers only. Lock in a low fixed rate for two years. Available with a 5% deposit.

Westpac Fixed Option Home Loan Premier Advantage Package P&IHome 2Y Fixed≥ 5% Deposit

Westpac Fixed Option Home Loan Premier Advantage Package
2.09%
3.50%
  • App: $0
  • Ongoing: $395 p.a.
$563
$3,000 refinance cashback
Lock in a low fixed rate for 2 years that allows you to make up to $30,000 in extra repayments and buy your home with a 5% deposit. $3,000 cashback for eligible refinancers. Apply by 30 November 2021. Terms and conditions apply.

Athena Variable Home Loan P&IHome≥ 40% Deposit

Athena Variable Home  Loan
1.99%
1.99%
  • App: $0
  • Ongoing: $0 p.a.
$555
Owner occupiers with 40% deposits or equity can get this competitive variable rate loan. No upfront or ongoing fees.
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Compare up to 4 providers

If you want to the current rates for different home loan types then check out the following pages:

The lowest Australian interest rates

The graph below shows the lowest rate on the market each month. It's a helpful way to just how much you can save by comparing interest rates.

Check out more detailed mortgage data on our home loans statistics page

Borrowers can save a lot of money with a below average interest rate

Home loan rates are very low right now. This is because the Reserve Bank has made multiple cuts to the official cash rate, bringing it down to a historic low. This has driven down lenders' funding costs, which they pass on to new borrowers in the form of lower rates.

But borrowers who already have a home loan are probably missing out. Many lenders offer very low rates for new customers while keeping their loyal, existing customers on older, higher rates.

You can ask your lender to put you on a more competitive rate. And if that doesn't work then compare and refinance your home loan to get a better deal.

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.

Even a slight variation in interest rates can make thousands of dollars of difference over the life of a home loan. For example, let’s consider a $500,000 home loan with principal and interest repayments and a loan term of 30 years. The table below shows the overall cost of this loan with an interest rate of 2.75% p.a. and 3.00% p.a.

Loan ALoan B
Interest rate3.00% p.a.2.75% p.a.
Loan amount$500,000$500,000
Monthly repayment amount$2,108.02$2,041.21
Total cost of loan$758,887.26$734,834.13
Total interest paid$258,887.26$234,834.13

As you can see, the 0.25% p.a. lower interest rate of Loan B results in a saving of more than $24,000 across the 30-year loan term. That clearly demonstrates just how important it is to get a competitive interest rate. Use our home loan repayment calculator to see how a higher or lower interest rate could affect your mortgage repayments.

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2 Responses

    Default Gravatar
    AllanMay 31, 2019

    Hi, I have a mortgage of $90,000 remaining could I change to another bank with this amount. I have a variable interest rate and receive a discount of 1.12% my rate being 4.15%. I would like to transfer to a bank with a more competitive rate.
    Thank you.

      Default Gravatar
      NikkiJune 1, 2019

      Hi Allan,

      Thanks for your inquiry.

      Yes, you can change your mortgage to get better rates by doing a refinance home loan. On the page you’ll find:

      • a table that lists out the brands offering refinancing
      • benefits of refinancing
      • steps on refinancing
      • average costs
      • other refinancing FAQs

      You can use our comparison table to help you find the lender that suits you.

      You can also speak to a mortgage broker. They are the best person to reach out to see your options for refinancing. They can give you a multitude of options according to your situation. In the meantime, to give you an estimate of your monthly repayments, you may use our home loan calculator.

      Hope this helps!

      Best,
      Nikki

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