What is the average home loan rate in Australia?
As of , the average variable owner-occupier home loan rate across the 66 lenders Ratesniffers tracks is 6.17% p.a. The median is 6.09% p.a., the lowest advertised rate is 5.89% p.a. and the highest is 8.65% p.a.
Average home loan rates by loan type (July 2026)
| Loan type | Average | Median | Lowest | Highest |
|---|---|---|---|---|
| Owner-occupier variable (P&I) | 6.17% | 6.09% | 5.89% | 8.65% |
| Investor variable (P&I) | 6.31% | 6.24% | 5.99% | 8.65% |
| 1-year fixed (owner-occupier P&I) | 6.46% | 6.39% | 6.14% | 9.08% |
| 2-year fixed (owner-occupier P&I) | 6.46% | 6.39% | 6.14% | 9.01% |
| 3-year fixed (owner-occupier P&I) | 6.53% | 6.49% | 6.09% | 8.88% |
| 5-year fixed (owner-occupier P&I) | 6.68% | 6.67% | 6.29% | 9.08% |
Advertised rates, owner-occupier principal and interest unless marked, correct as of 8 July 2026. Rates are refreshed daily.
Is the average rate a good rate?
No, the average is a benchmark, not a target. Roughly half the market advertises below it, and the sharpest lenders sit well below. Today the lowest variable rate on the panel, 5.89% p.a., sits 28 basis points under the average. If your rate is at or above the average, the cheapest live 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 is currently 4.35%. It is the shared floor under every lender's funding costs, so when it moves, variable rates and therefore the market average follow within weeks. The margin between the cash rate and the average variable rate is where lenders compete, which is why the gap between the cheapest and priciest lenders stays wide even when the cash rate is steady. Track the relationship on the RBA cash rate page.
Average rate questions, answered
What is the average home loan rate in Australia right now?
As of 8 July 2026, the average variable owner-occupier home loan rate across the 66 lenders Ratesniffers tracks is 6.17% p.a., and the median is 6.09% p.a. The averages on this page recompute from live lender data every day.
Is the average rate a good rate?
No. The average is what lenders charge across the whole market, not what a well-placed borrower pays. The lowest variable rate Ratesniffers tracks today is 5.89% p.a., which is 28 basis points below the 6.17% average. Paying the average on a $600,000 loan rather than the lowest advertised rate costs roughly $140 extra a month in interest.
How does the RBA cash rate affect the average home loan rate?
The RBA cash rate, currently 4.35%, is the floor that lenders' funding costs share. When the RBA moves, most lenders pass some or all of the change through to variable rates within a month, which drags the market average with it. The gap between the cash rate and the average variable rate is each lender's margin, and that margin is where lenders compete.
How is this average calculated?
Ratesniffers averages the advertised owner-occupier principal-and-interest rates across every lender in its index, refreshed daily, with one figure per qualifying product. Fixed averages are computed per term. No paid placement affects any figure on this page.
Next steps: compare today's full rate table, see the cheapest rates right now, or read the monthly Home Loan Rate Index for the dated, citable statistics behind this page.