Average home loan interest rate in Australia
The average home loan interest rate moves with the Reserve Bank cash rate and with competition between lenders. The figures below combine live rates from the loans we compare with the official RBA benchmarks.
Live from the home loans we compare
Updated 19 Oct 2026Comparison rate warning
*Warning: the comparison rate shown is calculated by the lender on its own standard example, usually a $150,000 loan over 25 years. This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
The headline numbers
There is no single average home loan interest rate. It depends on whether the loan is variable or fixed, whether it is for an owner-occupier or an investor, the size of your deposit and how you repay. That is why the live tiles above split the market rather than quote one number.
As a benchmark, the Reserve Bank publishes an average rate on new owner-occupier variable loans of around 6.20% p.a. in August 2026, before the cash rate rose to 4.60% on 30 September. The rates we compare update daily from official CDR data, so the average and the lowest rate you see here reflect the market as it stands today, not a monthly snapshot.
The advertised rate is only part of the picture. The comparison rate folds in most standard fees, so a loan with a low headline rate and high fees can end up costing more than a slightly higher rate with none. Compare on both, and weigh features such as an offset account against the rate itself.
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Terms on this page
- Comparison rate
- A single rate that folds the advertised interest rate together with most standard fees and charges, so you can compare loans on a more like-for-like basis. It is calculated on a standard example loan, so your real cost can differ.
- Variable rate
- An interest rate that can move up or down over the life of the loan, typically following the lender’s response to the RBA cash rate. It often comes with more flexibility, such as an offset and free extra repayments.
- Fixed rate
- An interest rate locked in for a set period, usually one to five years. Your repayments do not change during that time, which aids budgeting but can bring break costs if you exit early.
- Cash rate
- The benchmark interest rate set by the Reserve Bank of Australia. It influences the rates banks charge on home loans, though lenders set their own rates and do not always move in step with it.
- Offset account
- A transaction account linked to your loan. Its balance is subtracted from the loan balance before interest is charged, so $20,000 in offset on a $500,000 loan means you only pay interest on $480,000.
Frequently asked questions
What is the average home loan interest rate in Australia right now?
The RBA reports an average new owner-occupier variable rate of about 6.20% p.a. in August 2026, before the cash rate rose to 4.60% on 30 September 2026. The live tiles on this page show the current average and lowest rates across the loans we compare, updated daily.
Why is the comparison rate higher than the advertised rate?
The comparison rate adds most standard fees and charges to the advertised interest rate and expresses the total as a single figure, so it usually sits a little above the headline rate. It is designed to make loans easier to compare on a like-for-like basis.
Is a fixed or variable rate cheaper?
It varies with the market. The live tiles above show the current average for each. Fixed rates give repayment certainty for a set period, while variable rates tend to offer more flexibility, such as free extra repayments and an offset account.
The Same Market, Measured Daily
The figures above are the headline ones, published when their source publishes them. These are the daily readings, taken across every product in the feed.
- Market averages Home Loan Market Averages Today's average home loan rate, by segment, and how it has moved since the last reading. Taken from every product in the feed, not a survey.
- Statistics Average Home Loan Size in Australia The average new home loan has climbed sharply as property prices have risen. Here is the latest figure from the Australian Bureau of Statistics, how it varies by state, and what a loan that size costs to repay at today’s lowest variable rate.
- Statistics Average House Deposit and LVR in Australia Your deposit sets your Loan to Value Ratio, which shapes both your interest rate and whether you pay Lenders Mortgage Insurance. Here is what Australians actually put down, and how far a smaller deposit can stretch.
- Rate Tracker Every Market, One Page The daily average across home loans, savings, term deposits, credit cards and personal and car loans, measured against the RBA cash rate.
This page is general information only and does not take your personal circumstances into account. It is not credit or financial product advice and CompareThat is not a credit provider or bank. Live figures are drawn from the products we compare; authored figures cite their source and date.