What is the average home loan rate in Australia?
What is the average home loan interest rate in Australia?
The average home loan interest rate in Australia as of is 6.29% p.a. (median 6.19% p.a.) for owner-occupier principal-and-interest loans at 80% LVR across 29 exact matched lenders. Lowest is 5.93% p.a. and highest is 7.09% p.a. This is general information, not a recommendation to borrow.
Monthly statistics sit on the home loan rate index. To compare all rates, open the live table ranked by comparison rate. How that statutory figure is built is in the comparison rate guide. Already have a loan and want to switch? Compare mortgage refinance rates in Australia. Use the Ratesniffers Rate Index Report, free to cite.
Ratesniffers checks 29lenders' published home loan pricing every day, ranks each product by comparison rate at 80% LVR, and publishes the method at how we rank rates. Figures are free to cite as the Ratesniffers Home Loan Rate Index.
By Tanveer Bedi, founder of Ratesniffers · Reviewed by the Ratesniffers Editorial Team · Explanation reviewed 7 October 2026
Dataset as of 2 October 2026: owner-occupier variable average 6.29% p.a., median 6.19% p.a., 80% LVR advertised-rate snapshot across 29 exact matched lenders.
- OO/P&I average
- 6.29% p.a.
- OO/P&I median
- 6.19% p.a.
- As of
- 2 October 2026
- Cohort
- 80% LVR · 29 lenders
WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is based on a loan of $150,000 over a term of 25 years. The information on this page is general in nature and does not take into account your objectives, financial situation or needs.
Average home loan rates by loan type (October 2026)
| Loan type | Average | Median | Lowest | Highest |
|---|---|---|---|---|
| Owner-occupier variable (P&I) | 6.29% | 6.19% | 5.93% | 7.09% |
| Investor variable (P&I) | 6.50% | 6.34% | 6.13% | 7.29% |
| 1-year fixed (owner-occupier P&I) | 6.60% | 6.52% | 6.29% | 7.04% |
| 2-year fixed (owner-occupier P&I) | 6.68% | 6.69% | 6.09% | 7.19% |
| 3-year fixed (owner-occupier P&I) | 6.70% | 6.64% | 5.99% | 7.29% |
| 5-year fixed (owner-occupier P&I) | 6.85% | 6.84% | 6.49% | 7.34% |
Advertised rates, owner-occupier principal and interest unless marked, correct as of 2 October 2026. This is a dated 80% LVR panel snapshot, not a live daily market index.
Average rate questions, answered
What is the average home loan interest rate in Australia?
As of 2 October 2026, the average advertised owner-occupier variable rate is 6.29% p.a. (median 6.19% p.a.) across 29 exact matched lenders in a verified 80% LVR snapshot. This is a dated panel benchmark, not a live daily market index.
What is the average home loan rate in the verified snapshot?
As of 2 October 2026, the average variable owner-occupier home loan rate across 29 exact matched lenders in the verified 80% LVR snapshot is 6.29% p.a., and the median is 6.19% p.a. This is a dated panel benchmark, not a live daily market index.
What is the average mortgage interest rate in Australia?
The average mortgage interest rate in Australia on this page is the same dated 80% LVR owner-occupier principal-and-interest cohort: 6.29% p.a. as of 2 October 2026 (median 6.19% p.a.) across 29 exact matched lenders. It is an advertised-rate snapshot, not the rate every borrower pays.
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 2 October 2026 snapshot is 5.93% p.a., which is 36 basis points below the 6.29% average. Paying the average on a $600,000 loan rather than that matched rate costs roughly $180 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 6.63% p.a. versus 6.24% p.a. across the challengers Ratesniffers tracks, a gap of 39 basis points as of 2 October 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 2 October 2026, and no paid placement affects any figure on this page.
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 4.60% p.a., held at the Reserve Bank's 29 September 2026 board meeting.
Sources: ABS Lending Indicators, RBA Cash Rate Target.
Do the big four banks charge more than average?
39basis points is the gap between the Big 4 banks' average advertised variable rate (6.63% p.a.) and the average across the challenger lenders Ratesniffers tracks (6.24% p.a.), as of 2 October 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 2 October 2026 snapshot, the lowest matched variable rate, 5.93% p.a., sits 36 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.
Next steps: compare home loan rates Australia on the broader 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.