Key Takeaway

Variable-rate home loans in Australia currently sit between 6.00% and 7.20% p.a. (advertised rates), while one-year fixed rates range from 5.80% to 6.50% p.a., as of late June 2026. The Reserve Bank of Australia held the cash rate steady at its most recent meeting, and most economists expect rates to remain unchanged in the near term, though inflation data due this week could shift market expectations. Borrowers considering refinancing should compare the advertised rate against the comparison rate, which includes most fees and charges.

What Are Current Mortgage Rates in Australia?

As of late June 2026, average advertised variable rates from major lenders range from approximately 6.00% to 7.20% p.a. for owner-occupiers paying principal and interest. Investment property loans and interest-only products typically carry higher rates.

Fixed-rate loans show the following pattern: one-year fixed terms average 5.80% to 6.50% p.a., two-year fixed terms sit at 6.00% to 6.70% p.a., and three-year fixed rates range from 6.10% to 6.80% p.a. Longer fixed terms (four and five years) generally carry higher rates, reflecting lender pricing for extended rate certainty.

Comparison rates, which incorporate most fees and charges over a A$150,000 loan across 25 years, typically run 0.10% to 0.30% higher than the advertised rate. According to ASIC MoneySmart, the comparison rate is the best single figure for comparing the true cost of different loan products, though your actual costs depend on your loan amount, term, and how you use features such as offset or redraw.

What Is Driving Rates Right Now?

The Reserve Bank of Australia cash rate remains the primary influence on variable home-loan rates. Lenders typically pass cash-rate changes through to borrowers within weeks of an RBA decision, though the amount passed on varies by lender and product.

Fixed rates are shaped more by market expectations of future RBA moves and the cost of wholesale funding. When markets price in future rate cuts, fixed rates tend to fall ahead of any actual cash-rate reduction. Conversely, if traders expect rate rises, fixed rates climb in advance.

Lender competition and funding costs also play a role. Some lenders offer discounted rates to attract refinancers or first-home buyers, while others price to manage loan-book growth. Borrowers with larger deposits (lower loan-to-value ratios) and strong serviceability typically access better rates.

Will Rates Rise or Fall This Week?

The RBA does not meet this week, so no official cash-rate announcement is scheduled. However, inflation figures and employment data released this week could influence market pricing of future rate moves and, by extension, near-term fixed-rate pricing.

Read also: Mortgage Interest Rates in Australia Reverse Course and Rise (June 2026)

Most economists surveyed by Finder expect the cash rate to hold steady through the next quarter, with any cuts likely delayed until economic data confirms a sustained return of inflation to the RBA’s 2% to 3% target band. If this week’s data surprises to the upside (higher inflation or stronger jobs growth), markets may push back rate-cut expectations further, placing mild upward pressure on fixed rates. A softer result could have the opposite effect.

Variable rates are unlikely to move this week in the absence of an RBA decision, though individual lenders occasionally announce out-of-cycle adjustments in response to funding-cost changes or competitive positioning.

What Should Borrowers Do?

If you are considering refinancing, compare at least three offers using the comparison rate, not just the advertised rate. Check for offset accounts, redraw facilities, and any break costs if you are exiting a fixed-rate loan early. Refinancing can save thousands of dollars per year when your current rate sits well above competitive offers, but factor in application fees, valuation costs, and any discharge fees from your existing lender.

For borrowers choosing between variable and fixed, consider your tolerance for rate changes and your repayment buffer. A variable loan offers flexibility and the benefit of any future rate cuts, while a fixed loan provides repayment certainty for the fixed term. Split loans (part variable, part fixed) combine both approaches.

Verify current rates and eligibility with a licensed mortgage broker or directly with lenders, as rates change frequently and your personal circumstances (income, deposit size, credit history, and loan-to-value ratio) determine the rate you will actually receive. Serviceability rules set by APRA mean lenders assess your ability to repay at a rate typically 3% above the loan rate.

General Advice Warning

The information in this article is general in nature only and does not consider your objectives, financial situation, or needs. You should consider obtaining personal advice from a licensed mortgage broker or financial adviser before making any borrowing or refinancing decision. This is not personalised financial, lending, or legal advice. Advertised rates differ from comparison rates; verify current terms with a licensed lender for your situation. Rates are current as of June 2026 and change frequently. Eligibility, fees, lenders mortgage insurance (LMI), and product availability vary by lender and your circumstances.