Current interest rates in Australia
Currently the average variable home loan interest rate in Finder's database is 3.95% but you can find variable rates as low as 1.99% at Finder. Is it time to switch?
Updated . What changed?
We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!
What does a competitive interest rate look like in the current home loan market? It's probably lower than you think. In the table below you can compare the current average interest rates for fixed and variable loans according to Finder's database. We also list the lowest rate offer currently available through Finder.
If you just want to see the cheapest loans, check out our lowest home loan rates page.
Average interest rates versus the lowest rates*
|Rates December 2020||Data|
|Average variable mortgage interest rate||3.95%|
|Lowest variable rate available on Finder||1.99%|
|Average 3-year fixed mortgage interest rate||2.96%|
|Lowest 3-year fixed rate available on Finder||1.95%|
*Rates are averages taken from all comparable loans in Finder's database, which covers a large portion of the Australian mortgage market. Lowest rates listed above are based on products from lenders with whom Finder has a commercial partnership.
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.
Here are some current Australian mortgage 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. And if you can't find what you're looking for or just need more help, you can also speak to a mortgage broker.
After entering your details a mortgage broker from Aussie will call you. They will discuss your situation and help you find a suitable loan.
- A comparison of home loans from multiple lenders.
- Expert guidance through the entire application process.
- Free suburb and property reports.
The Adviser’s number 1 placed mortgage broker 8 years running (2013-2020)
More information about Australian mortgage rates
There are two graphs below. The first one tracks the average monthly rates according to an analysis of Finder's database. The second graph 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.
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 A||Loan B|
|Interest rate||3.00% p.a.||2.75% p.a.|
|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.
Want a better way to check your credit score?
Banks know your credit score, so why shouldn't you? The Finder app updates your score automatically each month and lets you know if it changes. Pop in your phone number below to get your download link.
More guides on Finder
Are you better off putting $10k in your home loan or in super?
Our experts crunch the numbers to help you work out the best place to park your money: is it your mortgage or your super fund?
UCapital Unsecured Business Loan
A UCapital unsecured business loan can provide up to $300,000 without security, with repayment terms between 3 and 12 months.
What is a redraw facility?
Here's what borrowers need to know about home loans with redraw facilities.
What is LVR on a home loan?
Your guide to home loan LVRs and how you can determine your loan to value ratio.
Best alarm clocks in Australia
We compared product features and read real customer reviews to find the best alarm clocks you can buy right now.
Finder’s RBA cash rate survey: Experts reveal their top economic predictions for 2021
Experts and economists have shared their key economic and financial predictions for 2021 as part of the latest Finder RBA cash rate survey. All 40 correctly predicted that the cash rate would remain at 0.10% this month.
Best knife sharpener in Australia
If you’re looking for the best knife sharpener for your kitchen, we’ve done all the hard work for you.
Finder’s RBA cash rate survey: 89% of experts support axing stamp duty nationally
An annual land tax should replace the one-off financial sledgehammer of stamp duty on property purchases, say experts. All experts (40/40) participating in Finder's RBA cash rate survey are predicting a cash rate hold this December.
Owner-occupier home loans
Need an owner-occupier home loan? Compare rates, understand home owner tax rules and more.
Real estate rush: 3.8 million Australians plan to buy property over the next year
House hunting has hit a fever pitch in Australia amid record-low interest rates and a remote working revolution, according to new research by Finder, Australia’s most visited comparison site.
Home Loan OffersImportant Information*
Up to $3,000 refinance cashback. A flexible and competitive variable rate loan. Eligible borrowers refinancing $250,000 or more can get $2,000 cashback per property plus a bonus $1,000 for their first application. Other conditions apply.
Up to $4,000 refinance cashback. With this competitive variable rate loan from St.George, refinancers borrowing $250,000+ can get up $4,000 cashback and borrow up to 90% of the property's value. (Terms, conditions & exclusions apply).
A competitive variable rate mortgage for owner occupiers $0 application and $0 ongoing fees. This interest rate falls over time as you pay off the loan.
Ask an Expert