| Australian interest rates January 2024 | Data |
|---|---|
| Average variable mortgage interest rate | 7.26% |
| Lowest variable rate available on Finder* | 5.99% |
| Average fixed mortgage interest rate | 6.72% |
| Lowest fixed rate available on Finder* | 5.80% |
*Lowest rates listed above are based on products from lenders with whom Finder has a commercial partnership.
Finder maintains a home loan database that includes thousands of interest rates from lenders big and small. Our data covers the majority of the home loan market.
Our average interest rate figures are updated monthly. To get the average variable rate figure we take the average of all interest rates for loans that:
This ensures our average rates reflect the types of loans that the average borrower would actually need.
The table below shows a range of competitive, current home loan rates for various loans, including fixed and variable rates for owner-occupiers and investors.
Interest rates are really important to your home loan repayments, so it's good to pay attention to it. Sometimes, though, it can be worth making a trade-off for good loan features. Make sure you always read the fine print.— Tom Goodwin, Commercial Content Editor
The graph below shows the lowest rate on the market each month. It's a helpful way to see just how much you can save by comparing interest rates.
If you just want to see the cheapest loans, check out our lowest home loan rates page.
Check out more detailed mortgage data on our home loans statistics page
Interest rates affect how much it costs to borrow money (and how much you can earn on money in your savings account).
Various factors combine to determine how high or low interest rates are at any time.
Australia's Reserve Bank determines certain interest rate settings, including the official cash rate target. This is a benchmark interest rate that effects the cost of borrowing money.
When the cash rate increases, lenders pass on their higher costs to borrowers. When the cash rate falls, lenders drop rates.
The RBA determines the cash rate based on multiple factors.
While the Reserve Bank sets the floor for certain interest rates, banks and lenders have a lot of flexibility to price interest rates themselves. Some lenders may drop rates to entice new customers. Others may feel that they can keep customers while lifting rates.
Home loan interest rates began rising rapidly in 2022 when the Reserve Bank of Australia lifted the cash rate 8 times in 8 months. There were 5 rate rises in 2023.
As interest rates rise, home loan repayments increase. And this means shopping around for a lower rate can save you more than ever.
You can ask your lender to put you on a more competitive rate. And if that doesn't work, then compare home loans and look for a better deal.
Even a slight variation in interest rates can make thousands of dollars of difference over the life of a home loan. For example, let’s consider 2 otherwise identical home loans with principal-and interest-repayments and 30-year loan terms. The only difference is a 50 basis point difference in the rate.
| Loan A | Loan B | |
|---|---|---|
| Interest rate | 6.00% p.a. | 6.50% p.a. |
| Loan amount | $500,000 | $500,000 |
| Monthly repayment amount | $2,998 | $3,161 |
| Total cost of loan | $1,079,191 | $1,137,723 |
| Total interest paid | $579,191 | $637,723 |
| Saving on cheaper loan | $58,532 | N/A |
As you can see, the lower interest rate of Loan A results in a saving of more than $58,000 over 30 years.
Use our home loan repayment calculator to see how a higher or lower interest rate could affect your mortgage repayments.
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my son an Australian citizen would be a first-time buyer in Australia, and we are researching the best time to buy looking at interest rates and property prices etc, he is open to all areas as he is a postman and his job is transferable
Any help will be great.
thank you
Hello Amanda,
Unfortunately at Finder, we can’t provide personal guidance around where to buy or market timing. It really depends on each individual’s goals and plans.
Whatever you decide, I do suggest factoring in interest rate rises. Calculate your monthly mortgage repayments with a 3% interest rate. And then see how expensive repayments get with a 5% rate. It’s a good affordability test.
Good luck,
Richard
Hi, I have a mortgage of $90,000 remaining could I change to another bank with this amount. I have a variable interest rate and receive a discount of 1.12% my rate being 4.15%. I would like to transfer to a bank with a more competitive rate.
Thank you.
Hi Allan,
Thanks for your inquiry.
Yes, you can change your mortgage to get better rates by doing a refinance home loan. On the page you’ll find:
You can use our comparison table to help you find the lender that suits you.
You can also speak to a mortgage broker. They are the best person to reach out to see your options for refinancing. They can give you a multitude of options according to your situation. In the meantime, to give you an estimate of your monthly repayments, you may use our home loan calculator.
Hope this helps!
Best,
Nikki