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Interest rates in Australia
Currently the average Australian variable mortgage rate in Finder's database is 3.23%. 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. Mortgage rates have been at historic lows until quite recently. However, since May 2022 we are now in a period of rising interest rates. The Reserve Bank of Australia lifted the cash rate by 25 percentage points in May and again by 50 percentage points in June.
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 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 June 2022 | Data |
|---|---|
| Average variable mortgage interest rate* | 3.23% |
| Lowest variable rate available on Finder** | 2.07% |
| Average fixed mortgage interest rate | 4.39% |
| Lowest fixed rate available on Finder | 3.19% |
*The average variable rate is an average of all the relevant rates in Finder's database. To make this data more accurate, we only analyse owner-occupier loans with maximum LVRs of 80% or higher. This ensures our average rate reflects the types of loans that the average borrower would actually need. **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.
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)
If you want the current rates for different home loan types, check out the following pages:
- Fixed interest rates
- Variable interest rates
- Big Four bank interest rates
- Investment loan interest rates
- Construction loan interest rates
The lowest Australian interest rates
The graph below shows the lowest rate on the market each month. It's a helpful way to see 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 have passed 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 A | Loan B | |
|---|---|---|
| Interest rate | 3.00% 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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Ubank Own Home Loan – Fixed
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G&C Mutual Bank Choice Home Loan
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Finder’s Property Investment Index Sydney
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Ask an Expert
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.
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:
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