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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 2022Data
Average variable mortgage interest rate*3.23%
Lowest variable rate available on Finder**2.07%
Average fixed mortgage interest rate4.39%
Lowest fixed rate available on Finder3.19%

*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.

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

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

loans.com.au Smart Booster Discount Variable Home Loan
2.10%
2.46%
  • App: $0
  • Ongoing: $0 p.a.
$564
Get a low discounted variable rate loan. Requires a 20% deposit. Get your loan processed fast and settle within 30 days.

Unloan Variable Home Loan P&IHome≥ 20% Deposit Refinancers only

Unloan Variable Home Loan
2.14%
2.06%
  • App: $0
  • Ongoing: $0 p.a.
$567
A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.

OneTwo Variable Rate Home Loan P&IHome≥ 20% Deposit Refi Only

OneTwo Variable Rate Home Loan
2.09%
1.99%
  • App: $0
  • Ongoing: $0 per month
$563
$5,000 refinance cashback.
A variable rate loan for owner-occupier refinancers living in NSW, VIC or SA metro and inner regional areas. Get an extra 0.15% off your rate as you repay the loan and get up to $2,500 in bonus payments. Terms and conditions apply.

Suncorp Back to Basics Home Loan P&IHome≥ 30% Deposit

Suncorp Back to Basics Home Loan
2.19%
2.20%
  • App: $0
  • Ongoing: $0 p.a.
$570
$3,000 cash bonus
Variable rate loan for home buyers that requires a 30% deposit. $3,000 cash bonus for eligible borrowers. Other terms, conditions and eligibility criteria apply.

Nano Variable Home Loans P&IHome≥ 20% Deposit

Nano Variable Home Loans
2.24%
2.24%
  • App: $0
  • Ongoing: $0 p.a.
$574
Competitive rate with zero fees, fast approval and a 100% free offset account. Available for refinancers and existing buyers purchasing their next home. 20% deposit required.

Macquarie Bank Basic Home Loan P&IHome≥ 40% Deposit

Macquarie Bank Basic Home Loan
2.39%
2.39%
  • App: $0
  • Ongoing: $0 p.a.
$586
This flexible variable rate loan requires a 40% deposit or equity. Get fast online approval and $0 application fee and $0 ongoing fees.

Yard Variable Home Loan P&IHome≥ 40% Deposit

Yard Variable Home Loan
2.14%
2.17%
  • App: $0
  • Ongoing: $0 p.a.
$567
Get a low variable rate loan with this online lender. 100% offset account. Requires a 40% deposit.

Athena Variable Home Loan P&IHome≥ 40% Deposit Celebrate

Athena Variable Home  Loan
2.14%
2.14%
  • App: $0
  • Ongoing: $0 p.a.
$567
Owner occupiers with 40% deposits or equity can get this competitive variable rate loan. No upfront or ongoing fees.
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Applications are subject to approval. Conditions, fees and charges apply. Please note that you need to be an Australian citizen or permanent resident to apply.

Credit services for Aussie Select, Aussie Activate and Aussie Elevate products are provided by AHL Investments Pty Ltd ACN 105 265 861 (“Aussie”) and its appointed credit representatives, Australian Credit Licence 246786. Credit for Aussie Select products is provided by Residential Mortgage Group Pty Ltd ACN 152 378 133, Australian Credit Licence 414133 (“RMG”). RMG is a wholly-owned subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL and Australian Credit Licence 234945. Credit for Aussie Activate products is provided by Pepper Finance Corporation Limited ACN 094 317 647 (“Pepper”). Pepper Group Limited ACN 094 317 665, Australian Credit Licence 286655 acts on behalf of Pepper. Credit services for Aussie Elevate products are provided by AHL Investments Pty Ltd ACN 105 265 861 Australian Credit Licence 246786 (“Aussie”) and its appointed credit representatives. Aussie is a trade mark of AHL Investments Pty Ltd ABN 27 105 265 861. Credit and any applicable offset accounts for Aussie Elevate are issued by Bendigo and Adelaide Bank Limited ABN 11 068 049 178 AFSL / Australian Credit Licence 237879.

Aussie is a trade mark of AHL Investments Pty Ltd. Aussie is a subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124. ©2020 AHL Investments Pty Ltd ABN 27 105 265 861 Australian Credit Licence 246786.

By submitting this form, you agree to the Aussie privacy policy.

After entering your details a mortgage broker from Aussie will call you. They will discuss your situation and help you find a suitable loan.

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If you want the current rates for different home loan types, 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 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 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

  1. 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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