RatesniffersRATESNIFFERS
LoginSign up
Mortgage Basics

What is a good home loan interest rate right now?

A good home loan rate sits below the current benchmark for your loan type and LVR. Here is how to compare average, median, and sharper rates without relying on a stale headline.

5 min read·Reviewed 1 August 2026·Ratesniffers Editorial Team

What is a good home loan interest rate right now?

A good rate today sits below the average for the same purpose, repayment type, fixed term and LVR. A rate at or below the median is competitive within that exact cohort; the lowest verified rate is a useful comparison point, but not a guarantee of eligibility.

These figures move with the market. Use the current verified rate index for the dated numbers, then compare your own loan against the matching category rather than memorising a headline rate.

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.

BenchmarkHow to use it
AverageShows whether your rate sits above or below the current cohort
MedianThe middle verified rate, less affected by unusually high outliers
Lowest verifiedA comparison point, subject to eligibility and product conditions
Comparison rateThe statutory cost measure to use when ranking like-for-like loans

Today's average, median and lowest verified rate

Live benchmarks across the 21+ lenders Ratesniffers tracks at 80% LVR, as at August 2026. A rate at or below the median for your exact loan type is competitive; the lowest verified rate is a ceiling, subject to eligibility and product conditions.

Loan typeAverageMedianLowest verified
Variable, owner-occupier P&I6.06% p.a.6.07% p.a.5.94% p.a.
1-year fixed, owner-occupier P&I6.39% p.a.6.39% p.a.6.19% p.a.
3-year fixed, owner-occupier P&I6.49% p.a.6.54% p.a.6.09% p.a.
5-year fixed, owner-occupier P&I6.64% p.a.6.69% p.a.6.29% p.a.
Variable, investor P&I6.24% p.a.6.23% p.a.6.09% p.a.

Are big four bank rates worse than smaller lenders?

Not necessarily. The relative average for the big four and challenger lenders can flip as lenders reprice, so compare the current verified figures rather than assuming either group is automatically cheaper. Product fees and eligibility can also reverse the order shown by the headline interest rate alone.

What's a good fixed rate right now?

A good fixed rate sits below the current average for the exact term you are comparing. One-year and five-year fixed loans are priced on different curves, so compare like with like and include the comparison rate, package fees, rate-lock fee and likely break cost in the decision.

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

Yes. Investor and owner-occupier loans are priced as separate cohorts, and your deposit size matters too. Rates commonly step up in bands once your loan-to-value ratio rises past 80%, so the same lender can quote a different rate depending on whether you are 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 the dated average and median for the same modelled loan type and LVR. A rate at or below the median for that snapshot is a useful benchmark; a rate above the average is a reason to ask your lender for a review or start a refinance comparison.

as well as People's Choice and Heritage's current rates. and another long-running customer-owned mutual worth comparing is IMB Bank's current rates. Smaller customer-owned mutuals also make the panel, among them GMCU's current rates. and, based in regional Queensland, The Capricornian's current rates. Also worth checking, a member-owned Hunter Region bank trading as The Mutual Bank, is Maitland Mutual Limited's current rates. A small Illawarra and NSW South Coast mutual that regularly posts some of the sharpest owner-occupier variable pricing in the country is Horizon Bank's current rates. An Armidale-headquartered mutual built around keeping banking and its profits in regional New South Wales is Regional Australia Bank's current rates. In Queensland, the motoring club's own member-owned challenger to the majors is RACQ Bank's current rates. And in the NSW Northern Rivers, the local member-owned mutual is Summerland Bank's current rates.

Advertisement

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

What is a good home loan interest rate right now?

A good rate today sits below the average for the same purpose, repayment type, fixed term and LVR. A rate at or below the median is competitive within that exact cohort; the lowest verified rate is a useful comparison point, but not a guarantee of eligibility. These figures move with the market. Use the current verified rate index for the dated numbers, then compare your own loan against the matching category rather than memorising a headline rate.

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 necessarily. The relative average for the big four and challenger lenders can flip as lenders reprice, so compare the current verified figures rather than assuming either group is automatically cheaper. Product fees and eligibility can also reverse the order shown by the headline interest rate alone.

What's a good fixed rate right now?

A good fixed rate sits below the current average for the exact term you are comparing. One-year and five-year fixed loans are priced on different curves, so compare like with like and include the comparison rate, package fees, rate-lock fee and likely break cost in the decision.

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

Yes. Investor and owner-occupier loans are priced as separate cohorts, and your deposit size matters too. Rates commonly step up in bands once your loan-to-value ratio rises past 80%, so the same lender can quote a different rate depending on whether you are 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 the dated average and median for the same modelled loan type and LVR. A rate at or below the median for that snapshot is a useful benchmark; a rate above the average is a reason to ask your lender for a review or start a refinance comparison.

References

Related guides

Compare the rates this guide explains

Live rates refreshed daily, ranked by comparison rate.

Put this guide into action

Compare actual rates, track the market, or model the numbers.

Want this applied to your scenario?

A 30-min broker consult turns this guide into specific numbers for your situation , no fees, no obligation.

Talk to a broker