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What is a good home loan interest rate right now?

The cash rate sits at 4.35% p.a. and the average owner-occupier variable rate is 6.17% p.a. Here's what counts as good, average, or cheap today, and how that shifts by loan type.

5 min read·Reviewed 12 July 2026·Ratesniffers Editorial Team

What is a good home loan interest rate right now?

As of 12 July 2026, Ratesniffers tracks an average owner-occupier variable rate of 6.17% p.a. across 66 lenders, with a median of 6.09% p.a. A good rate today sits clearly below that average, a competitive rate is under 6.00% p.a., and the cheapest rate Ratesniffers tracks is 5.89% p.a. from Horizon Bank. Anything above the 6.17% average is worth actively shopping against.

These figures move with the market, so treat the tiers as relative to today's average and median, not fixed numbers to remember.

Average, good, and cheap: what's the difference?

The average is what the whole panel charges today, useful for knowing whether your own rate is dragging you down or keeping pace. The median (the middle rate when every lender is ranked) strips out a handful of very high outlier rates that skew the average upward, so it's often the fairer benchmark for what most borrowers are actually paying. The cheapest is the single lowest rate tracked, useful as a ceiling on what's realistically achievable, not a guarantee of what you personally qualify for.

BenchmarkOwner-occupier variable, 12 Jul 2026
Average6.17% p.a.
Median6.09% p.a.
Cheapest tracked5.89% p.a. (Horizon Bank)
Highest tracked8.65% p.a.

Are big four bank rates worse than smaller lenders?

Not right now. Ratesniffers' 12 July 2026 snapshot has the big four banks averaging 6.11% p.a. on owner-occupier variable loans, about 7 basis points cheaper than the 6.18% p.a. average across smaller and challenger lenders, a reversal of the usual assumption that the majors always charge more. That gap is small and can flip either way as lenders reprice, so it's still worth comparing individual products rather than assuming either group is automatically cheaper.

What's a good fixed rate right now?

The cheapest fixed rate Ratesniffers tracks is 6.09% p.a., a 3-year fixed product from Macquarie Bank. Average fixed rates rise with the term length: 1-year fixed averages 6.45% p.a., 2-year 6.46% p.a., 3-year 6.52% p.a., and 5-year 6.67% p.a. (all owner-occupier, principal and interest, as at 12 July 2026). A good fixed rate is one that sits below the average for the specific term you're comparing, since a 1-year and a 5-year fixed rate aren't priced on the same curve.

Does a good rate depend on my deposit or loan purpose?

Yes. Investor variable rates average 6.31% p.a. against 6.17% p.a. for owner-occupiers, a gap lenders price in because regulators treat investor lending as higher risk. Your deposit size matters too: rates typically step up in bands once your loan-to-value ratio rises past 80%, so the same lender can quote you a different rate depending on whether you're borrowing with a 20% or a 5% deposit.

How do I check whether my own rate is good?

Compare your comparison rate, not just your headline rate, against today's average and median for your exact loan type: owner-occupier or investor, variable or fixed, and your LVR band. A rate at or below the median for your category is a strong sign you're already well placed; a rate above the average is a clear signal to ask your lender for a better deal or start a refinance comparison.

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What is a good home loan interest rate right now?: frequently asked questions

What is a good home loan interest rate right now?

As of 12 July 2026, Ratesniffers tracks an average owner-occupier variable rate of 6.17% p.a. across 66 lenders, with a median of 6.09% p.a. A good rate today sits clearly below that average, a competitive rate is under 6.00% p.a., and the cheapest rate Ratesniffers tracks is 5.89% p.a. from Horizon Bank. Anything above the 6.17% average is worth actively shopping against. These figures move with the market, so treat the tiers as relative to today's average and median, not fixed numbers to remember.

Average, good, and cheap: what's the difference?

The average is what the whole panel charges today, useful for knowing whether your own rate is dragging you down or keeping pace. The median (the middle rate when every lender is ranked) strips out a handful of very high outlier rates that skew the average upward, so it's often the fairer benchmark for what most borrowers are actually paying. The cheapest is the single lowest rate tracked, useful as a ceiling on what's realistically achievable, not a guarantee of what you personally qualify for.

Are big four bank rates worse than smaller lenders?

Not right now. Ratesniffers' 12 July 2026 snapshot has the big four banks averaging 6.11% p.a. on owner-occupier variable loans, about 7 basis points cheaper than the 6.18% p.a. average across smaller and challenger lenders, a reversal of the usual assumption that the majors always charge more. That gap is small and can flip either way as lenders reprice, so it's still worth comparing individual products rather than assuming either group is automatically cheaper.

What's a good fixed rate right now?

The cheapest fixed rate Ratesniffers tracks is 6.09% p.a., a 3-year fixed product from Macquarie Bank. Average fixed rates rise with the term length: 1-year fixed averages 6.45% p.a., 2-year 6.46% p.a., 3-year 6.52% p.a., and 5-year 6.67% p.a. (all owner-occupier, principal and interest, as at 12 July 2026). A good fixed rate is one that sits below the average for the specific term you're comparing, since a 1-year and a 5-year fixed rate aren't priced on the same curve.

Does a good rate depend on my deposit or loan purpose?

Yes. Investor variable rates average 6.31% p.a. against 6.17% p.a. for owner-occupiers, a gap lenders price in because regulators treat investor lending as higher risk. Your deposit size matters too: rates typically step up in bands once your loan-to-value ratio rises past 80%, so the same lender can quote you a different rate depending on whether you're borrowing with a 20% or a 5% deposit.

How do I check whether my own rate is good?

Compare your comparison rate, not just your headline rate, against today's average and median for your exact loan type: owner-occupier or investor, variable or fixed, and your LVR band. A rate at or below the median for your category is a strong sign you're already well placed; a rate above the average is a clear signal to ask your lender for a better deal or start a refinance comparison.

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