🇦🇺 Today's Australian Mortgage Rates

This rate reflects what existing Australian owner-occupier borrowers with variable-rate mortgages are currently paying, averaged across all institutions. It is sourced from RBA Statistical Table F6 (Housing Lending Rates).

How the RBA cash rate flows to variable mortgages

Most Australian home loans are variable-rate. When the RBA changes its cash rate target, lenders typically pass the change (fully or partially) through to variable mortgage customers within 2–4 weeks. From 2022 to 2023, the RBA raised rates by 4.25 percentage points in 13 months — one of the fastest tightening cycles in Australian history.

Outstanding vs new loan rate

Existing borrowers often pay a higher rate than new borrowers, because lenders offer sharper discounts to attract new business. If your current variable rate is higher than the "new loans" rate shown above, it may be worth calling your lender to renegotiate or refinancing to a more competitive rate.

Use the Refinance Calculator to estimate your monthly savings and break-even point.

APRA (Australian Prudential Regulation Authority) requires all regulated lenders to assess borrowers at their actual rate plus 3 percentage points. This "serviceability buffer" was raised from 2.5% to 3% in November 2021 to cool a hot housing market.

Impact on borrowing power

At the current variable rate of 5.8%, lenders test you at 8%. Borrowers who can comfortably afford repayments at 5.8% may qualify for roughly 15–20% less than they expect, purely due to the buffer. On a $600,000 loan, the difference between qualifying at 5.8% vs 8% can reduce your maximum loan by $80,000–$120,000.

LMI (Lenders Mortgage Insurance)

If your LVR (Loan-to-Value Ratio) exceeds 80%, you will typically pay Lenders Mortgage Insurance (LMI). LMI protects the lender — not you — if you default. Premiums range from 0.5% to 3.5% of the loan amount depending on LVR and loan size. The Australian Mortgage Calculator includes LMI estimates for each state.

The new loan rates show what lenders are offering to new owner-occupier borrowers — both variable and across all loan types. This is typically 0.2–0.8% below the outstanding rate because lenders compete aggressively for new customers with advertised "honeymoon" or comparison rates.

Advertised rate vs comparison rate

Always look at the comparison rate (not just the headline rate) when comparing home loans. The comparison rate factors in fees and charges over the loan's life, giving a more accurate picture of what you will actually pay. Two loans at 6.0% can have comparison rates of 6.1% vs 6.5% due to application, annual, and early exit fees.

Owner-occ vs investment property

Rates shown here are for owner-occupier loans. Investment property loans carry a premium of 0.2–0.6% above owner-occupier rates, as APRA applies higher capital requirements for investment lending. Interest-only investment loans attract even higher rates.