Get exclusive money-saving offers and guides
Straight to your inbox
By signing up, you agree to the Finder
Privacy & Cookies Policy
and
Terms of Use, Disclaimer & Privacy Policy.
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.
Home Loans
Guides & Help
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!
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.
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 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.
Credit score in the Finder app
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.
By submitting your phone number, you agree to the Finder privacy policy and terms of use
More guides on Finder
-
He’s a bit of a fixer-upper: 4 in 5 first home buyers intend to renovate
First home buyers are getting practical with different tactics to enter the property market, according to new research by Finder, Australia’s most visited comparison website. A new survey has revealed that 1 in 5 (22%) first home buyers plan to renovate immediately after purchasing. Finder shares tips for sticking to your renovation budget.
-
Out of cycle: How your home loan rate could increase this year, even if the cash rate doesn’t
The last time the cash rate held for extended period of 34 months, banks changed their interest rates seven times - five of which were increases.
-
Finder’s RBA Cash Rate Survey: 60% of experts blame BNPL for drop in credit cards
Credit cards are being used less and experts say Buy Now Pay Later services such as Afterpay and Zip are to blame, according to new research from Finder. In this month's Finder RBA Cash Rate Survey™, 39 experts and economists weighed in on future cash rate moves and other issues related to the state of the Australian economy.
-
Finder’s RBA Cash Rate Survey: 74% of experts fear first home buyers will be pushed out of market
Soaring property prices and stamp duty fees have experts fearing that first home buyers may be soon pushed out of the market.
-
Car loan statistics 2021
Finder research shows 2.7 million Australians have a car loan. Find out how much Aussies are borrowing, and how this has changed over time.
-
86 400 Neat home loan – variable
This flexible variable rate home loan offer from a digital lender is suitable for both home buyers and investors.
-
Westpac’s mega-low home loan: Will more Big Four banks follow?
Westpac has launched a mega-low 1.79% home loan, just as experts flag the RBA might raise rates sooner than thought. So why have Westpac cut now?
-
76% of bank’s customers ahead on home loans shows it’s easier than you think
Less than 12 months since borrowers rushed to put their mortgages on hold, Aussies are paying more off their home loan than ever before
-
Finder RBA Cash Rate Survey: Experts predict 12% rise in property prices by 2023
Property prices will jump across Australia over the next 2 years, according to a survey of experts from Finder. All experts and economists expect the cash rate to hold at 0.10% in March
-
CommBank 0.99% Green Loan: Can you get it?
CommBank has announced a new green loan with a 0.99% interest rate, which you can use to buy and install renewable tech in your home.
Home Loan Offers
Important Information*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