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 April 2021||Data|
|Average variable mortgage interest rate||3.93%|
|Lowest variable rate available on Finder||2.14%|
|Average 3-year fixed mortgage interest rate||2.93%|
|Lowest 3-year fixed rate available on Finder||1.75%|
|Average interest rate of a Finder app user||3.30%|
*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. And if you can't find what you're looking for or just need more help, you can also speak to a mortgage broker.
If you want to the current rates for different home loan types then check out the following pages:
- Fixed interest rates
- Variable interest rates
- Big Four Bank interest rates
- Investment loan interest rates
- Construction loan interest rates
More information about Australian interest 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.
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 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.
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