Best Home Loan Rates in Australia
RATE OF THE DAY
Variable
5.44%
Comparison Rate*
5.45%
This is our pick of the top rates available from the lenders we analysed. Rate shown is for investors making principal and interest repayments with a loan-to-value ratio of 80%
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The best home loan rates right now

These are some of the best home loan rates available from the major banks, plus the other largest lenders in Australia.

The Big 5 Banks
Non-Major Banks
Member Owned
Lender
Variable
1-Year Fixed
2-Year Fixed
3-Year Fixed
4-Year Fixed
5-Year Fixed
5.49%
Interest Rate
5.50%
Comparison Rate
5.49%
Interest Rate
6.2%
Comparison Rate
5.59%
Interest Rate
6.20%
Comparison Rate
5.69%
Interest Rate
6.20%
Comparison Rate
5.89%
Interest Rate
6.26%
Comparison Rate
5.89%
Interest Rate
6.26%
Comparison Rate
5.59%
Interest Rate
5.61%
Comparison Rate
5.84%
Interest Rate
5.64%
Comparison Rate
5.94%
Interest Rate
5.68%
Comparison Rate
5.99%
Interest Rate
5.73%
Comparison Rate
6.04%
Interest Rate
5.77%
Comparison Rate
6.14%
Interest Rate
5.85%
Comparison Rate
5.59%
Interest Rate
5.72%
Comparison Rate
5.94%
Interest Rate
7.78%
Comparison Rate
5.79%
Interest Rate
7.59%
Comparison Rate
6.04%
Interest Rate
7.50%
Comparison Rate
6.09%
Interest Rate
7.40%
Comparison Rate
6.24%
Interest Rate
7.35%
Comparison Rate
5.89%
Interest Rate
5.90%
Comparison Rate
5.89%
Interest Rate
6.66%
Comparison Rate
5.79%
Interest Rate
6.56%
Comparison Rate
6.04%
Interest Rate
6.54%
Comparison Rate
6.09%
Interest Rate
6.51%
Comparison Rate
6.24%
Interest Rate
6.52%
Comparison Rate
5.94%
Interest Rate
5.98%
Comparison Rate
5.74%
Interest Rate
6.32%
Comparison Rate
5.79%
Interest Rate
6.28%
Comparison Rate
5.84%
Interest Rate
6.25%
Comparison Rate
5.99%
Interest Rate
6.27%
Comparison Rate
6.09%
Interest Rate
6.29%
Comparison Rate
Owner occupier loans with principal and interest repayments and 50% LVR
Lender
Variable
1-Year Fixed
2-Year Fixed
3-Year Fixed
4-Year Fixed
5-Year Fixed
5.44%
Interest Rate
5.45%
Comparison Rate
5.54%
Interest Rate
6.05%
Comparison Rate
5.44%
Interest Rate
6.02%
Comparison Rate
5.59%
Interest Rate
6.05%
Comparison Rate
5.79%
Interest Rate
6.12%
Comparison Rate
5.79%
Interest Rate
6.13%
Comparison Rate
5.64%
Interest Rate
5.65%
Comparison Rate
6.14%
Interest Rate
6.17%
Comparison Rate
6.14%
Interest Rate
6.21%
Comparison Rate
6.24%
Interest Rate
6.27%
Comparison Rate
-
Interest Rate
-
Comparison Rate
6.34%
Interest Rate
6.38%
Comparison Rate
5.59%
Interest Rate
5.61%
Comparison Rate
5.64%
Interest Rate
5.61%
Comparison Rate
5.64%
Interest Rate
5.61%
Comparison Rate
5.73%
Interest Rate
5.64%
Comparison Rate
6.03%
Interest Rate
5.76%
Comparison Rate
6.09%
Interest Rate
5.82%
Comparison Rate
5.58%
Interest Rate
5.70%
Comparison Rate
-
Interest Rate
-
Comparison Rate
5.69%
Interest Rate
5.77%
Comparison Rate
5.79%
Interest Rate
5.80%
Comparison Rate
6.09%
Interest Rate
5.92%
Comparison Rate
6.09%
Interest Rate
5.96%
Comparison Rate
5.64%
Interest Rate
5.67%
Comparison Rate
5.74%
Interest Rate
5.68%
Comparison Rate
5.74%
Interest Rate
5.69%
Comparison Rate
5.79%
Interest Rate
5.71%
Comparison Rate
5.89%
Interest Rate
5.76%
Comparison Rate
5.89%
Interest Rate
5.78%
Comparison Rate
Owner occupier loans with principal and interest repayments and 50% LVR
Lender
Variable
1-Year Fixed
2-Year Fixed
3-Year Fixed
4-Year Fixed
5-Year Fixed
5.49%
Interest Rate
5.50%
Comparison Rate
5.54%
Interest Rate
8.08%
Comparison Rate
5.64%
Interest Rate
7.84%
Comparison Rate
5.69%
Interest Rate
7.62%
Comparison Rate
-
Interest Rate
-
Comparison Rate
5.84%
Interest Rate
7.30%
Comparison Rate
5.49%
Interest Rate
5.53%
Comparison Rate
5.59%
Interest Rate
7.46%
Comparison Rate
5.44%
Interest Rate
7.26%
Comparison Rate
5.59%
Interest Rate
7.14%
Comparison Rate
5.79%
Interest Rate
7.07
Comparison Rate
5.84%
Interest Rate
6.99%
Comparison Rate
5.64%
Interest Rate
5.67%
Comparison Rate
5.89%
Interest Rate
6.47%
Comparison Rate
5.99%
Interest Rate
6.46%
Comparison Rate
6.09%
Interest Rate
6.48%
Comparison Rate
6.29%
Interest Rate
6.54%
Comparison Rate
6.29%
Interest Rate
6.55%
Comparison Rate
5.63%
Interest Rate
5.63%
Comparison Rate
5.69%
Interest Rate
5.64%
Comparison Rate
5.79%
Interest Rate
5.67%
Comparison Rate
5.59%
Interest Rate
5.81%
Comparison Rate
-
Interest Rate
-
Comparison Rate
6.04%
Interest Rate
5.81%
Comparison Rate
5.64%
Interest Rate
5.70%
Comparison Rate
5.99%
Interest Rate
7.40%
Comparison Rate
6.10%
Interest Rate
7.28%
Comparison Rate
6.10%
Interest Rate
7.15%
Comparison Rate
-
Interest Rate
-
Comparison Rate
6.25%
Interest Rate
7.00%
Comparison Rate
Owner occupier loans with principal and interest repayments and 50% LVR

How to get the best home loan rate you can

1.
Compare as many lenders as you can. You really need to throw the net as wide as possible to find the absolute best rates you qualify for. That includes the major providers and smaller players who often have better rates.
2.
Use a mortgage broker. Comparing the best rates will be easier if you use a broker with access to a wide range of lenders. A broker can also negotiate with lenders on your behalf to help you secure the best rate possible.
3.
Get your LVR down. A lower loan-to-value ratio may move yo into a lower interest rate bracket. To lower your LVR, do whatever you can to increase your deposit or the value of your property if you’re an existing borrower.
4.
Be flexible on loan type. The best home loan rates are generally offered on basic loans, with minimal features. Consider if you really need an offset account – would a redraw facility be enough. Be open to a fixed rate loan if that’s where the best rates are.
5.
Ask your current lender for a better rate. If you’ve been with them for a few years, now’s a particularly good time to ask. They might not be able to match the market’s best rates, but not needing to switch will save you time and money in fees.
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Review my mortgage
Talk to a mortgage broker

Who offers the lowest home loan rates in Australia?

The lowest home loan rates in Australia are generally offered by smaller lenders looking to boost market share. You generally won’t find the best rates just by shopping around the major banks and other large high-street lenders.

These smaller lenders offering the best rates will typically either be member-owned banks (e.g. Australian Mutual Bank, Horizon Bank, Border Bank) or non-bank lenders (e.g. Pacific Mortgage Group, Loans.com.au, Reduce Home Loans).

The reality is having a home loan with a smaller lender offering sharp rates won’t be all that different versus being with a major lender. It can pay to consider these less-well-known lenders. 

That said, some borrowers do prefer the familiarity of the bigger-name brands. Larger lenders also invest heavily in online tools and processes which smaller lenders can’t always match.

The question to ask yourself is: are you willing to forego the slick branding and operation of a large lender if choosing a lesser-known provider means you can secure the best home loan rate? A mortgage broker can help you weigh up the trade-offs if you're not sure.

Looking for the best rate on a specific type of mortgage?

Below we round up the best home loan rates available on a range of different loan types to suit a range of borrowers and situations.

Best variable home loan rates

Product Interest rate Comparison rate* Max LVR
in1bank in1home 5.08% p.a. 5.13% p.a. 50%
Australian Mutual Bank GumLeaf Basic Variable 5.14% p.a. 5.21% p.a. 60%
First Option Bank Simple Home Loan 5.24% p.a. 5.24% p.a. 60%
ME Bank Basic Home Loan 5.33% p.a. 5.35% p.a. 60%
Pacific Mortgage Group Owner Occupied Variable Home Loan 5.34% p.a. 5.34% p.a. 80%

View more of the best variable home loan rates.

Best fixed home loan rates

Product Interest rate Comparison rate* Max LVR
BankVic Home Buyer or Upgrade 5.18% p.a.
Fixed 3 years		 5.53% p.a. 80%
South West Slopes Bank Optimum Fixed Rate Home Loan 5.20% p.a.
Fixed 1 year		 5.78% p.a. 90%
Horizon Bank Fixed Rate Home Loan 5.24% p.a.
Fixed 1 year		 6.00% p.a. 70%
Pacific Mortgage Group Fixed Home Loan 5.29% p.a.
Fixed 2 years		 5.34% p.a. 80%
Border Bank Customs Value 5.29% p.a.
Fixed 2 years		 5.56% p.a. 60%

View more of the best fixed home loan rates.

Best home loan rates with offset

Product Interest rate Comparison rate* Max LVR
in1bank in1offsethome 5.18% p.a.
Variable		 5.62% p.a. 50%
Australian Mutual Bank GumLeaf Standard Variable Rate 5.24% p.a.
Variable		 5.31% p.a. 60%
Horizon Bank Fixed Rate Home Loan 5.24% p.a.
Fixed 1 year		 6.00% p.a. 70%
Border Bank Customs Value 5.29% p.a.
Fixed 2 years		 5.56% p.a. 60%
ME Bank Flexible Home Loan Member Package 5.34% p.a.
Variable		 5.74% p.a. 60%

Best home loan rates for low deposits (5%)

Product Interest rate Comparison rate* Max LVR
Border Bank Customs Value 5.39% p.a.
Fixed 2 years		 5.83% p.a. 95%
Horizon Bank Fixed Rate Home Loan 5.39% p.a.
Fixed 1 year		 6.15% p.a. 95%
The Mutual Bank Package Home Loan Fixed 5.39% p.a.
Fixed 2 years		 7.21% p.a. 95%
Greater Bank Ultimate Home Loan 5.44% p.a.
Fixed 2 years		 7.16% p.a. 95%
Horizon Bank Home Sweet Home Loan 5.54% p.a.
Variable		 6.24% p.a. 95%

Who gets the best home loan rates?

Finding the best home loan rate will mean different things to different borrowers, but if we think of ‘best’ as being the lowest interest rate available, these are the types of borrowers that typically get them:

Owner occupiers: If you’re borrowing to purchase a property to live in, you generally qualify for lower home loan rates, versus investment property loan rates. There’s often a 0.25% discount for owner occupiers on the exact same loan for owner occupiers.

Borrowers with a high level of equity: It’s very common for lenders to have ‘tiered’ interest rates on their home loans based on the borrower’s LVR, with the best rates on offer to borrowers who have a large deposit or equity in their property.

Borrowers with a good or excellent credit score: Lenders don’t always tier their home loan rates based on credit score, but the reality is bad credit mortgage rates are generally worse. This is simply because a low credit score means you won’t qualify with a lot of mainstream lenders, which will limit your ability to access the best home loan rates.

Flexible borrowers: Borrowers who are willing to shop around and consider a variety of lenders can generally find lower rates. It can also help if you’re open to a fixed or variable rate as these trade places in terms of which offers the lowest rates.

Regular refinancers: Staying with the same lender over a long period without refinancing is rarely a recipe for getting the best interest rate in your home loan. You should consider checking refinance rates every couple of years to ensure your loan is still competitive in the market.

Borrowers who keep it simple: A good rule of thumb is that the more straightforward the loan, then lower the rate will be. Adding features (or risk) adds cost for the lender, so they price their low-frill loans to make them more attractive. If you want an offset account, package loan, or an interest-only home loan rate, expect to pay more.

How a loan with the best interest rate isn’t always the cheapest 

If you’re only considering the loans with the absolute best interest rates, there’s a risk you won’t actually be getting the best overall deal. Probably the most obvious way this could happen is if the loan has a low rate but high upfront and ongoing fees. This is why the comparison rate on a loan can be just as important as the interest rate.

Let’s look at an example of how this could happen:

Low rate loan with high fees Higher rate loan with no fees
Loan amount $600,000 $600,000
Interest rate 5.45% p.a. 5.50% p.a.
Upfront fees $500 $0
Ongoing fee $15/month $0
Monthly repayments $3,425 $3,407
Cost difference after 3 years +$648 -

Here are some other scenarios where what appears to be the best home loan rate could end up costing you more in the long run:

  • The super low interest rate being advertised by the lender is an introductory offer, with a higher rate kicking in after a year.
  • You have a decent chunk of cash savings, but the low rate loans you’re looking at don’t come with an offset account which would help you save on interest.
  • The loan has a variable rate, but rates are likely to increase in the near future.
  • The loan has a low fixed rate relative to variable, but rates are likely to fall in the near future which could push variable rates lower.

What kind of rate is best: Variable, fixed or split rate?

Variable rate
The interest rate on a variable home loan can be increased or lowered by the lender at any time, generally when the Reserve Bank of Australia makes a change to the official cash rate. It means you have less certainty over your repayments over time, but there is the potential to lower your costs if interest rates go down. These loans generally offer more flexibility to make extra repayments and more loan features, like an offset account.
Fixed rate
If you go with a fixed rate loan, the interest rate is locked in for a set period of between one and five years. During the period your repayments will be at the same level. You’ll be protected from interest rate increases, but you won’t benefit if rates go down. These loans generally offer less scope to pay off extra and come with minimal extra features. There are break costs if you want to end the fixed term early.
Split rate
As the name suggests, a split loan offers a split between a fixed and variable rate. You effectively have two loans, one at a variable rate and the other at a fixed rate. It’s up to you how much of the loan goes on the variable rate and how much goes on the fixed rate. This may be the best option if you’re genuinely unsure whether to go variable or lock in your loan at a fixed rate.

Frequently asked questions

How can I tell if I’m on the best home loan rate possible?

You can usually check the current interest rate on your home loan through your online banking login or mobile app. If you need to, you can always call your lender to confirm what rate you’re paying. Depending on when you took out your loan, there’s a decent chance your current rate will be different to the rate on offer when you took out the loan initially.

Once you’re back up to speed on your current rate, you should compare it to a wide range of alternative loans and lenders to get a sense of how competitive it is. Just make sure you’re comparing the same kind of loans. For example, if you’re on a package loan, comparing it to basic loans won’t give you the full picture.

Will I need to refinance to get a better home loan rate?

It’s often necessary to refinance your home loan to make sure you’re consistently on a competitive rate. At the least, you should make it clear to your current lender that you are prepared to refinance to get the best deal. They will often respond with an offer of a lower rate.

You see, Reserve Bank data shows that the average interest rate on loans for new customers is almost always lower than the rates being paid on existing loans. It pays to be a new customer, or at least one who is regularly scanning the market for lower rates.

Should I go with the absolute best home loan rate I can find?

It’s not always in your best interest to go for the rock-bottom interest rates some lenders advertise. If other aspects of the loan, like fees and features, aren’t also competitive, the loan overall may end up not being the best deal. 

It’s a good idea to consider the overall cost of the loan in interest and fees, based on the interest rate, fees and features you’ll use.

Are the best home loan rates only for people with excellent credit?

You don’t necessarily need to have an excellent credit score to qualify for the best home loan rates. Lenders do consider your credit history when assessing your eligibility for a home loan, but as long as you are eligible, you will generally get the same interest rate as all other new borrowers in the same LVR bracket.

A good credit score can, however, mean you will have more lenders to choose from.

Are the current best home loan rates fixed or variable?

Right now, the best home loan rates are fairly evenly split across fixed and variable loans. For much of 2025, fixed rates were lower as Australia experienced a rate cutting cycle. But with interest rates back on the rise in 2026, lenders have lifted fixed rates in anticipation of a period of higher rates.

Whether a variable or fixed rate ends up being the best call will largely depend on how many more rate increases we get in 2026.

Can I still qualify for the best home loan rates if I’m a first home buyer?

First home buyers are not automatically restricted from accessing the best interest rates in the market. However, the absolutely lowest interest rates are typically available to borrowers with a low LVR (below 70%) which is difficult for first home buyers. 

In other words, you would likely need a home deposit of more than 20% to qualify for the best rates. Very few first home buyers have a deposit that large.

Is it worth going with a better interest rate if it’s only slightly cheaper?

If all other aspects of the loan are the same, even a slightly lower rate will save you money, and potentially a lot of it over time. But if getting the lower rate means incurring switching costs, higher ongoing fees on the new loan, worse loan features, or all of the above, then a slightly lower rate is unlikely to be worth it. 

But to make sure, calculate the overall cost of the loan to see which leaves you in a better position.

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