What is the average home loan rate in Australia?
As of , the average variable owner-occupier home loan rate across 26 exact matched lenders is 6.08% p.a. The median is 6.06% p.a., the lowest matched rate is 5.94% p.a. and the highest is 6.74% p.a.
Australian home loan market at a glance
The average new owner-occupier home loan in Australia was $731,000 in the June Quarter 2026, and 110,297 owner-occupier loans were refinanced or renegotiated in the same quarter, worth $66.7 billion combined (Australian Bureau of Statistics, Lending Indicators, released 14 August 2026). The RBA cash rate target is 4.35% p.a., held at the Reserve Bank's 11 August 2026 board meeting.
Sources: ABS Lending Indicators, RBA Cash Rate Target.
Average home loan rates by loan type (August 2026)
| Loan type | Average | Median | Lowest | Highest |
|---|---|---|---|---|
| Owner-occupier variable (P&I) | 6.08% | 6.06% | 5.94% | 6.74% |
| Investor variable (P&I) | 6.23% | 6.22% | 6.09% | 6.54% |
| 1-year fixed (owner-occupier P&I) | 6.40% | 6.39% | 6.19% | 6.49% |
| 2-year fixed (owner-occupier P&I) | 6.38% | 6.39% | 6.14% | 6.59% |
| 3-year fixed (owner-occupier P&I) | 6.49% | 6.54% | 6.09% | 6.69% |
| 5-year fixed (owner-occupier P&I) | 6.65% | 6.69% | 6.29% | 6.89% |
Advertised rates, owner-occupier principal and interest unless marked, correct as of 19 August 2026. This is a dated 80% LVR panel snapshot, not a live daily market index.
Do the big four banks charge more than average?
4basis points is the gap between the Big 4 banks' average advertised variable rate (6.12% p.a.) and the average across the challenger lenders Ratesniffers tracks (6.08% p.a.), as of 19 August 2026. The Big 4 typically close some of that gap with discretionary discounts, but you generally have to ask, and the advertised averages are what most borrowers see first.
Is the average rate a good rate?
No, the average is a benchmark for this panel cohort, not a target or an eligibility promise. In the 19 August 2026 snapshot, the lowest matched variable rate, 5.94% p.a., sits 14 basis points under the average. If your rate is at or above the average, the cheapest verified rates and the refinance savings calculator will show what switching is worth in dollars.
How does the RBA cash rate affect the average?
The RBA cash rate influences lender funding and variable-rate pricing. Because this page is a dated panel snapshot, the current cash-rate figure is kept on the separately dated RBA cash rate page rather than mixed into this cohort.
Average rate questions, answered
What is the average home loan rate in the verified snapshot?
As of 19 August 2026, the average variable owner-occupier home loan rate across 26 exact matched lenders in the verified 80% LVR snapshot is 6.08% p.a., and the median is 6.06% p.a. This is a dated panel benchmark, not a live daily market index.
Is the average rate a good rate?
No. The average describes this verified panel cohort, not what every borrower can obtain. The lowest variable rate in the 19 August 2026 snapshot is 5.94% p.a., which is 14 basis points below the 6.08% average. Paying the average on a $600,000 loan rather than that matched rate costs roughly $70 extra a month in interest.
Do the big four banks charge more than the average?
Yes, on advertised variable rates. The Big 4 banks' average advertised variable owner-occupier rate is 6.12% p.a. versus 6.08% p.a. across the challengers Ratesniffers tracks, a gap of 4 basis points as of 19 August 2026. The Big 4 compete instead through discretionary discounts, which you generally have to ask for.
How is this average calculated?
Ratesniffers averages exact matrix-matched advertised rates for a modelled 80% LVR scenario, with one qualifying row per lender in each loan-type cohort. Fixed averages are computed per term. The source snapshot is dated 19 August 2026, and no paid placement affects any figure on this page.
Next steps: compare the broader home loan rate table, see the cheapest verified rates, or read the monthly Home Loan Rate Index for the dated, citable statistics behind this page. For the wider market picture, including the average new loan size and how much Australians are borrowing and refinancing, see the Australian home loan statistics.