Important disclosure
Compare home loan interest rates from 1.79%
Compare home loan interest rates from over 100 lenders, as well as fees, features, and other benefits. Remember that the home loan with the lowest rate may not always offer you the most value.

Owner Occupier Accelerates - (LVR < 60%)
2.14
% p.a
Variable
2.14
% p.a
The more of your home you pay off, the lower your rate could be. This low rate is available for borrowers with equity of 40% or more.
Find and compare interest rates
Product Smart Booster Home Loan Discounted Variable - 2yr Real Time Rating™ | Interest Rate 2.10 % p.a Intro 24 months | Comparison Rate* 2.46 % p.a | Company Promoted | Repayment $1,346 monthly | Features Redraw facility Offset Account Borrow up to 80% Extra Repayments Interest Only Owner Occupied | Go to site | Buyers and refinancers can benefit from this special discounted rate, plus no ongoing fees and optional access to an offset account. | Highlighted | ||
Product Owner Occupier Accelerates - Celebrate (Principal and Interest) Real Time Rating™ | Interest Rate 2.14 % p.a Variable | Comparison Rate* 2.14 % p.a | Company Promoted | Repayment $1,292 monthly | Features Redraw facility Offset Account Borrow up to 60% Extra Repayments Interest Only Owner Occupied | Go to site | The more of your home you pay off, the lower your rate could be. This low rate is available for borrowers with equity of 40% or more. | |||
Product Low Rate Home Loan - Prime (Owner Occupied) (Principal and Interest) Real Time Rating™ Winner of Best Refinance Home Loan, RateCity Gold Awards 2022 | Interest Rate 2.14 % p.a Variable | Comparison Rate* 2.14 % p.a | Company Promoted | Repayment $1,292 monthly | Features Redraw facility Offset Account Borrow up to 60% Extra Repayments Interest Only Owner Occupied | Go to site | Winner of Best Refinance Home Loan, RateCity Gold Awards 2022 | Do you have 40% deposit or equity available? Pay no ongoing fees and enjoy access to extra repayments and a redraw facility for your owner-occupied home loan. | ||
Product Variable Home Loan Real Time Rating™ | Interest Rate 2.09 % p.a Variable | Comparison Rate* 1.99 % p.a | Company Promoted | Repayment $1,285 monthly | Features Redraw facility Offset Account Borrow up to 80% Extra Repayments Interest Only Owner Occupied | Go to site | special Receive $5,000 AUD cashback when you refinance your existing home loan ~ Ends in about 1 month | Owner occupiers can enjoy a competitive interest rate and avoid upfront and ongoing fees with this variable rate home loan. | ||
Product Star Gold Home Loan Real Time Rating™ Winner of Best Refinance Home Loan, RateCity Gold Awards 2022 | Interest Rate 1.79 % p.a Variable | Comparison Rate* 1.84 % p.a | Company | Repayment $1,241 monthly | Features Redraw facility Offset Account Borrow up to 60% Extra Repayments Interest Only Owner Occupied | Go to site | Winner of Best Refinance Home Loan, RateCity Gold Awards 2022 | |||
Product Well Balanced Real Time Rating™ Winner of Best Variable Home Loan, RateCity Gold Awards 2022 | Interest Rate 1.85 % p.a Variable | Comparison Rate* 1.88 % p.a | Company | Repayment $1,250 monthly | Features Redraw facility Offset Account Borrow up to 80% Extra Repayments Interest Only Owner Occupied | Go to site | Winner of Best Variable Home Loan, RateCity Gold Awards 2022 | |||
Product Neat Home Loan Real Time Rating™ | Interest Rate 1.89 % p.a Variable | Comparison Rate* 1.90 % p.a | Company | Repayment $1,256 monthly | Features Redraw facility Offset Account Borrow up to 60% Extra Repayments Interest Only Owner Occupied | Go to site | ||||
Product Yard Home Loan (Special) Real Time Rating™ Winner of Best Variable Home Loan, RateCity Gold Awards 2022 | Interest Rate 1.99 % p.a Variable | Comparison Rate* 2.02 % p.a | Company | Repayment $1,270 monthly | Features Redraw facility Offset Account Borrow up to 80% Extra Repayments Interest Only Owner Occupied | Go to site | special Yard’s low-rate variable special home loan ~ Ends in 11 daysWinner of Best Variable Home Loan, RateCity Gold Awards 2022 | |||
Product Well Balanced Real Time Rating™ | Interest Rate 3.45 % p.a Fixed - 1 year | Comparison Rate* 2.02 % p.a | Company | Repayment $1,494 monthly | Features Redraw facility Offset Account Borrow up to 90% Extra Repayments Interest Only Owner Occupied | Go to site | ||||
Product Investment Neat Home Loan Real Time Rating™ | Interest Rate 2.14 % p.a Variable | Comparison Rate* 2.15 % p.a | Company | Repayment $1,292 monthly | Features Redraw facility Offset Account Borrow up to 60% Extra Repayments Interest Only Owner Occupied | Go to site | ||||
Product Yard Investor Bundle Loan Real Time Rating™ | Interest Rate 2.15 % p.a Variable | Comparison Rate* 2.18 % p.a | Company | Repayment $1,294 monthly | Features Redraw facility Offset Account Borrow up to 80% Extra Repayments Interest Only Owner Occupied | Go to site | ||||
Product Owner Occupier Accelerates - Liberate (Principal and Interest) Real Time Rating™ | Interest Rate 2.24 % p.a Variable | Comparison Rate* 2.18 % p.a | Company | Repayment $1,307 monthly | Features Redraw facility Offset Account Borrow up to 80% Extra Repayments Interest Only Owner Occupied | Go to site | ||||
Product Well Balanced Real Time Rating™ Winner of Best Investor Home Loan, RateCity Gold Awards 2022 | Interest Rate 2.17 % p.a Variable | Comparison Rate* 2.20 % p.a | Company | Repayment $1,297 monthly | Features Redraw facility Offset Account Borrow up to 80% Extra Repayments Interest Only Owner Occupied | Go to site | Winner of Best Investor Home Loan, RateCity Gold Awards 2022 | |||
Product Back to Basics Home Loan Special Offer Real Time Rating™ | Interest Rate 2.19 % p.a Variable | Comparison Rate* 2.20 % p.a | Company | Repayment $1,299 monthly | Features Redraw facility Offset Account Borrow up to 70% Extra Repayments Interest Only Owner Occupied | Go to site | Cashback Receive $3,000 cash when you take out a Suncorp Bank home loan of $750K or more with LVR <=90%. Apply by 31 June 2022, settle by 30 September 2022. Unless withdrawn prior. T&Cs & eligibility criteria apply. ~ Ends in about 1 month | |||
Product Yard Investor Loan Real Time Rating™ Winner of Best Investor Home Loan, RateCity Gold Awards 2022 | Interest Rate 2.19 % p.a Variable | Comparison Rate* 2.22 % p.a | Company | Repayment $1,299 monthly | Features Redraw facility Offset Account Borrow up to 80% Extra Repayments Interest Only Owner Occupied | Go to site | Winner of Best Investor Home Loan, RateCity Gold Awards 2022 | |||
Product Low Rate Home Loan - Prime (Owner Occupied) (Principal and Interest) Real Time Rating™ Winner of Best Home Loans Over 1m, Best Variable Home Loan, RateCity Gold Awards 2022 | Interest Rate 2.24 % p.a Variable | Comparison Rate* 2.24 % p.a | Company | Repayment $1,307 monthly | Features Redraw facility Offset Account Borrow up to 80% Extra Repayments Interest Only Owner Occupied | Go to site | Winner of Best Home Loans Over 1m, Best Variable Home Loan, RateCity Gold Awards 2022 | |||
Product Low Rate Home Loan - Prime (Owner Occupied) (Interest Only) Real Time Rating™ | Interest Rate 2.44 % p.a Variable | Comparison Rate* 2.24 % p.a | Company | Repayment $610 monthly | Features Redraw facility Offset Account Borrow up to 60% Extra Repayments Interest Only Owner Occupied | Go to site | ||||
Product Ocean Owner Occupied Variable (No Annual Fee) Real Time Rating™ Winner of Best Refinance Home Loan, RateCity Gold Awards 2022 | Interest Rate 2.16 % p.a Variable | Comparison Rate* 2.27 % p.a | Company | Repayment $1,295 monthly | Features Redraw facility Offset Account Borrow up to 60% Extra Repayments Interest Only Owner Occupied | Go to site | Winner of Best Refinance Home Loan, RateCity Gold Awards 2022 | |||
Product Low Rate Home Loan - Prime (Investment) (Principal and Interest) Real Time Rating™ | Interest Rate 2.29 % p.a Variable | Comparison Rate* 2.29 % p.a | Company | Repayment $1,314 monthly | Features Redraw facility Offset Account Borrow up to 60% Extra Repayments Interest Only Owner Occupied | Go to site | ||||
Product Well Balanced Real Time Rating™ | Interest Rate 4.42 % p.a Fixed - 2 years | Comparison Rate* 2.32 % p.a | Company | Repayment $1,654 monthly | Features Redraw facility Offset Account Borrow up to 90% Extra Repayments Interest Only Owner Occupied | Go to site |
Learn more about home loans
Home loan interest rates
The interest rates available on home loans can vary a great deal. While it’s natural to focus on the size of your monthly payments or how long it will take you to pay off the loan in its entirety, paying close attention to interest rates themselves is vital. Individual borrower needs vary, but making the wrong choice could mean that you end up paying a lot more than you need.
Comparing interest rates
Comparing home loan interest rates can be difficult because they’re presented in different ways. When you’re looking for a loan, always check the comparison rate. This figure is designed to make it easy for you to see which loans offer the best value in simple monetary terms.
There are different types of interest rates you can choose from, and which will be best for you will depend on your circumstances.
Fixed interest rates
A fixed interest rate will not change at any point, so you will always know exactly what your repayments will be. This can make it easier to budget. The rates offered on loans like this are usually a bit higher than on variable rate loans, but if the RBA cash rate rises, you will save money compared to what you would have had to pay otherwise. The main downside of fixed rate loans is that they don’t offer much flexibility and if you want to leave them early you may have to pay a break fee.
Variable interest rates
Taking out a loan with a variable interest rate means that what you pay will change over time. These loans usually offer the lowest rates available, but it’s important to note that what you pay can go up as well as down, depending on the national interest rate. Loans like this often offer extra features such as the ability to make extra repayments at no charge or to set up an interest offset account.
Split interest rates
Loans offering split interest rates basically let you fix part of the loan and pay the rest at the variable rate. This reduces the amount of risk involved but gives you some of the advantages offered by the variable rate, such as lower initial costs and the prospect of saving money if the RBA cash rate falls.
Things to consider
Before deciding which type of interest rate is right for you, you should ask yourself the following questions:
- How careful do you need to be? If you are on a low income, security will be more important.
- How flexible do you want to be? Would it significantly benefit you to be able to pay the loan off early?
- How much money can you save up each month with the rate you are considering?
- How might your income change over the duration of the loan?
If you are still unsure what type of loan suits you best, discuss these matters with a financial adviser. Making a good decision at this stage can help you avoid financial difficulties and mean you’re not paying more than you need to overall.
Latest news and articles
Mark Bristow
Personal Finance Editor
Mark Bristow is RateCity's Home & Personal Finances Editor, and an experienced analyst, researcher, and producer. Working for over ten years, Mark previously wrote and researched commercial real estate at CoreLogic, and has seen articles published at Lifehacker and Business Insider, among others.
Frequently asked questions
If a mortgage rate changes, will it affect your repayments?
If you have a variable rate home loan, changes to your mortgage rate may affect the cost of your repayments. Rising interest rate could cost you more in interest charges, while interest rate cuts could see you paying less interest on your home loan.
If you have a fixed rate home loan, your interest charges will stay the same during the fixed interest period, regardless of whether the lender’s variable rates rise or fall. Once the fixed rate term expires, your loan will revert to a variable rate, so be prepared in case of bill shock.
What happens to my home loan when interest rates rise?
If you are on a variable rate home loan, every so often your rate will be subject to increases and decreases. Rate changes are determined by your lender, not the Reserve Bank of Australia, however often when the RBA changes the cash rate, a number of banks will follow suit, at least to some extent. You can use RateCity cash rate to check how the latest interest rate change affected your mortgage interest rate.
When your rate rises, you will be required to pay your bank more each month in mortgage repayments. Similarly, if your interest rate is cut, then your monthly repayments will decrease. Your lender will notify you of what your new repayments will be, although you can do the calculations yourself, and compare other home loan rates using our mortgage calculator.
There is no way of conclusively predicting when interest rates will go up or down on home loans so if you prefer a more stable approach consider opting for a fixed rate loan.
How often do mortgage rates change?
Mortgage interest rates change based on two main factors: changes to the Reserve Bank of Australia’s (RBA) cash rate, and out-of-cycle rate hikes from your lender.
Generally, your home loan lender will change its mortgage rates in alignment with the RBA’s cash rate. On the first Tuesday of each month (excluding January) the RBA meets to decide whether the cash rate should increase, decrease, or stay on hold. If the cash rate changes, a lender’s variable interest rates should change in tandem.
Lenders may also change interest rates out-of-cycle with the RBA cash rate, with fixed rates and variable rates frequently hiked and cut at the lender’s discretion. To stay on top of changing mortgage rates, read the latest home loan news.
What is a mortgage rate?
The interest rate on a home loan is sometimes called the mortgage rate. This percentage indicates how much interest the lender will charge you with each home loan repayment. Your interest rate is effectively the “cost” of “buying” the money you’re using to buy a property – the higher your mortgage rate, the more your home loan repayments may cost.
Using a home loan calculator, you can estimate how much your home loan repayments may cost, based on your mortgage rate, loan term, and loan amount. This may also be affected by whether you’re making principal and interest repayments or interest-only repayments, if you have a fixed rate or variable rate mortgage, and any fees and other charges that may apply.
How do I find out my current interest rate and how much is owing on my loan?
Your bank statements and/or your internet banking should show these details. If you are not sure, call your bank or estimate.
What is the average annual percentage rate?
Also known as the comparison rate, or sometimes the ‘true rate’ of a loan, the average annual percentage rate (AAPR) is used to indicate the overall cost of a loan after considering all the fees, charges and other factors, such as introductory offers and honeymoon rates.
The AAPR is calculated based on a standardised loan amount and loan term, and doesn’t include any extra non-standard charges.
What is a comparison rate?
The comparison rate is a more inclusive way of comparing home loans that factors in not only on the interest rate but also the majority of upfront and ongoing charges that add to the total cost of a home loan.
The rate is calculated using an industry-wide formula based on a $150,000 loan over a 25-year period and includes things like revert rates after an introductory or fixed rate period, application fees and monthly account keeping fees.
In Australia, all lenders are required by law to publish the comparison rate alongside their advertised rate so people can compare products easily.
What are the different types of home loan interest rates?
A home loan interest rate is used to calculate how much you’ll pay the lender, usually annually, above the amount you borrow. It’s what the lenders charge you for them lending you money and will impact the total amount you’ll pay over the life of your home loan.
Having understood what are home loan rates in general, here are the two types you usually have with a home loan:
Fixed rates
These interest rates remain constant for a specific period and are a good option if you’re a first-time buyer or if you’re looking for a fixed monthly repayment. One possible downside of a fixed rate is that it may be higher than a variable rate. Also, you don’t benefit from any lowering of interest rates in the market. On the flip side, if rates go up, your rate won’t change, possibly saving you money.
Variable rates
With variable interest rates, the lender can change them at any time. This change can be based on economic conditions or other reasons. Changes in interest rates could be beneficial if your monthly repayment decreases but can be a problem if it increases. Variable interest rates offer several other benefits often not available with fixed rate home loans like redraw and offset facilities and free extra repayments.
When does Commonwealth Bank charge an early exit fee?
When you take out a fixed interest home loan with the Commonwealth Bank, you’re able to lock the interest for a particular period. If the rates change during this period, your repayments remain unchanged. If you break the loan during the fixed interest period, you’ll have to pay the Commonwealth Bank home loan early exit fee and an administrative fee.
The Early Repayment Adjustment (ERA) and Administrative fees are applicable in the following instances:
- If you switch your loan from fixed interest to variable rate
- When you apply for a top-up home loan
- If you repay over and above the annual threshold limit, which is $10,000 per year during the fixed interest period
- When you prepay the entire outstanding loan balance before the end of the fixed interest duration.
The fee calculation depends on the interest rates, the amount you’ve repaid and the loan size. You can contact the lender to understand more about what you may have to pay.
What is the difference between fixed, variable and split rates?
A fixed rate home loan is a loan where the interest rate is set for a certain amount of time, usually between one and 15 years. The advantage of a fixed rate is that you know exactly how much your repayments will be for the duration of the fixed term. There are some disadvantages to fixing that you need to be aware of. Some products won’t let you make extra repayments, or offer tools such as an offset account to help you reduce your interest, while others will charge a significant break fee if you decide to terminate the loan before the fixed period finishes.
A variable rate home loan is one where the interest rate can and will change over the course of your loan. The rate is determined by your lender, not the Reserve Bank of Australia, so while the cash rate might go down, your bank may decide not to follow suit, although they do broadly follow market conditions. One of the upsides of variable rates is that they are typically more flexible than their fixed rate counterparts which means that a lot of these products will let you make extra repayments and offer features such as offset accounts.
Split rates home loans
A split loan lets you fix a portion of your loan, and leave the remainder on a variable rate so you get a bet each way on fixed and variable rates. A split loan is a good option for someone who wants the peace of mind that regular repayments can provide but still wants to retain some of the additional features variable loans typically provide such as an offset account. Of course, with most things in life, split loans are still a trade-off. If the variable rate goes down, for example, the lower interest rates will only apply to the section that you didn’t fix.
What is the best interest rate for a mortgage?
The fastest way to find out what the lowest interest rates on the market are is to use a comparison website.
While a low interest rate is highly preferable, it is not the only factor that will determine whether a particular loan is right for you.
Loans with low interest rates can often include hidden catches, such as high fees or a period of low rates which jumps up after the introductory period has ended.
To work out the best value for money, have a look at a loan’s comparison rate and read the fine print to get across all the fees and charges that you could be theoretically charged over the life of the loan.
Are fixed rates or variable rates cheaper?
Fixed and variable home loan interest rates are discretionary based on the lender’s decision. They will also be influenced by the Australian economy, as well as the Reserve Bank of Australia’s cash rate. The specific interest rate you may be offered will also depend on your credit history and financial situation.
Whether a fixed or variable rate home loan is the cheaper option for you will depend on all the above, and may still fluctuate over a 25-year home loan term. Therefore, it’s worth comparing your loan options with our comparison tables to see how the rates compare, based on your specific financial needs.
Does the Home Loan Rate Promise apply to discounted interest rate offers, such as honeymoon rates?
No. Temporary discounts to home loan interest rates will expire after a limited time, so they aren’t valid for comparing home loans as part of the Home Loan Rate Promise.
However, if your home loan has been discounted from the lender’s standard rate on a permanent basis, you can check if we can find an even lower rate that could apply to you.
Do you compare mortgages using the comparison or advertised rate?
A lot of Australians compare home loans using the advertised interest rate, which indicates how much interest you’ll be charged on your mortgage repayments. The lower your rate, the cheaper your home loan should be.
However, interest charges aren’t the only cost associated with home loans. Most mortgage lenders also charge fees on their home loans. A mortgage with a low interest rate and high fees can sometimes cost more than a mortgage with a high interest rate and low fees.
A home loan’s comparison rate combines the cost of interest with the cost of standard fees and charges into a single percentage rate. Mortgage lenders are required to display a comparison rate alongside their advertised rate to better indicate the home loan’s overall cost.
Keep in mind that to ensure consistency, all comparison rates are calculated assuming a $150,000 principal and interest mortgage with a 25 year term. As your home loan may be different, the comparison rate may not accurately reflect exactly how much your home loan may cost. Also, the comparison rate doesn’t include every home loan fee and charge, so it’s still important to compare home loans and read the fine print before you apply.
Is the lowest home loan rate always the cheapest?
The home loan with the lowest interest rate may not always be the cheapest mortgage option for you. Sometimes a home loan with a low interest rate may charge high fees, which may cost more in total than a mortgage with a higher interest rate and no fees.
Consider checking the comparison rate, which combines interest and standard fees, to get a better idea of the overall cost of different home loan options.
What is an interest-only loan? How do I work out interest-only loan repayments?
An ‘interest-only’ loan is a loan where the borrower is only required to pay back the interest on the loan. Typically, banks will only let lenders do this for a fixed period of time – often five years – however some lenders will be happy to extend this.
Interest-only loans are popular with investors who aren’t keen on putting a lot of capital into their investment property. It is also a handy feature for people who need to reduce their mortgage repayments for a short period of time while they are travelling overseas, or taking time off to look after a new family member, for example.
While moving on to interest-only will make your monthly repayments cheaper, ultimately, you will end up paying your bank thousands of dollars extra in interest to make up for the time where you weren’t paying off the principal.
Who sets mortgage rates?
Mortgage rates are influenced by the official cash rate, which is determined by the Reserve Bank of Australia (RBA) at its monthly board meeting on the first Tuesday of every month, except for January.
The official cash rate is the interest rate that banks charge other banks to borrow money. If the RBA cuts the cash rate, the interest rate banks are charged when they borrow from other banks is reduced. Likewise, if the cash rate is hiked, the interest rate banks are charged will go up.
If banks can save money from reduced interest rates, they will often pass on some or all of these savings to their variable rate home loan customers – although they are not required to. They can also choose to pass on a cash rate rise by increasing mortgage interest rates.
How long can you fix a home loan rate for?
Most lenders should let you fix your interest rate for anywhere between one and five years. While rare, a few lenders may offer fixed rate terms for as long as 10 years.
Fixing your home loan interest rate for a longer term can keep your budgeting fairly straightforward, as you shouldn't have to factor in changes to your mortgage repayments if variable rates change, such as when the Reserve Bank of Australia (RBA) changes its rates at its monthly meeting. Additionally, if variable rates rise during your fixed rate term, you can continue to pay the lower fixed rate until the fixed term ends, potentially saving you some money.
Of course, a longer fixed term also means a longer length of time where you may have less flexibility in your home loan repayments. It’s also a longer period where you won’t be able to refinance your mortgage without paying break fees. If variable rates were to fall during this period, you may also be stuck paying a higher fixed rate for a longer period.
How do you find cheap home loans?
With so many interest rate options and repayment types available, finding the cheapest home loan may depend on the type of loan you choose.
Whether you’re looking for an owner-occupier or investor loan, with interest-only or principal and interest repayments, on a fixed or variable interest rate, the cheapest home loan rate available may vary greatly.
One way to find the cheapest option for you is to narrow down your search and compare the options that best suit your individual requirements. RateCity’s home loan comparison tables can help you get started on your search and take the hassle out of shopping around.
What is a variable home loan?
A variable rate home loan is one where the interest rate can and will change over the course of your loan. The rate is determined by your lender, not the Reserve Bank of Australia, so while the cash rate might go down, your bank may decide not to follow suit, although they do broadly follow market conditions. One of the upsides of variable rates is that they are typically more flexible than their fixed rate counterparts which means that a lot of these products will let you make extra repayments and offer features such as offset accounts.