Quick Answer
The best home loan rate in Australia as of March 2026 is 5.74% variable (comparison rate 5.79%) for owner-occupier principal and interest loans at 80% LVR or below. This rate is available from a non-bank lender on Lendera's panel. The Big 4 banks average 6.12% for comparable loans. The best rate for you depends on your deposit size, whether you are buying or refinancing, and which loan features matter to you.
Rates shown are based on a $500,000 owner-occupier loan at 80% LVR. Your rate may be lower or higher depending on your loan amount, LVR, property type and borrower profile. Use our rate comparison tool to see the exact rate you qualify for.
Best Variable Rate Home Loans
Variable rate home loans remain the most popular choice in Australia, offering flexibility and the potential to benefit from future rate cuts. Here is how different lender categories compare for owner-occupier principal and interest loans at 80% LVR or below.
| Lender Type | Rate From | Comparison Rate | Best For |
|---|---|---|---|
| Non-bank lenders | 5.74% | 5.79% | Borrowers who want the lowest rate |
| Digital banks | 5.79% | 5.84% | Tech-savvy borrowers wanting online management |
| Second tier banks | 5.84% | 5.94% | Balance of rate and features |
| Credit unions | 5.89% | 5.94% | Members wanting personalised service |
| Big 4 banks | 6.12% | 6.19% | Borrowers wanting branch access |
The trade-off with the lowest rate lenders is usually fewer features or less flexibility. Non-bank lenders offering rates below 5.80% often have basic loan products without offset accounts, or charge a monthly fee for offset access. Second tier banks and credit unions sit in a middle ground, offering competitive rates with more complete feature sets. The Big 4 banks charge a premium for branch networks, bundled products and brand familiarity. On a $500,000 loan over 30 years, the 0.38% gap between the lowest non-bank rate and the average Big 4 rate adds up to approximately $41,000 in extra interest.
Best Fixed Rate Home Loans
Fixed rate loans lock in your repayment for a set period, giving you certainty over your budget. Here are the best fixed rates available as of March 2026.
| Fixed Term | Rate From | Best For |
|---|---|---|
| 1 year | 5.79% | Borrowers wanting short term certainty |
| 2 years | 5.89% | Most popular fixed term |
| 3 years | 5.99% | Medium term budget certainty |
| 5 years | 6.29% | Long term certainty (higher cost) |
Variable rates are currently cheaper than fixed rates across all terms. This is because the market is pricing in the possibility that the RBA may cut rates further during 2026. If that happens, variable rate borrowers will benefit while fixed rate borrowers will be locked into a higher rate. However, if rates hold or rise, fixed rate borrowers have certainty. For a detailed comparison of the pros and cons of each approach, see our fixed vs variable home loan guide.
Best Home Loans for First Home Buyers
First home buyers should look beyond rate alone. The features that matter most when you are buying your first property are different from what matters to an experienced borrower.
What to look for: Low deposit options (5% to 10%), no LMI schemes, offset account availability, flexible repayments with no penalty for extra payments, and a lender that accepts the First Home Guarantee.
Government schemes. The First Home Guarantee allows eligible buyers to purchase with just 5% deposit and no Lenders Mortgage Insurance. The First Home Owner Grant provides a cash grant for new builds, with amounts varying by state. These schemes can save first home buyers tens of thousands of dollars in upfront costs.
Rate is important but features like offset and extra repayments will save you more over the life of a 30-year loan than a 0.10% rate difference. A loan at 5.84% with a full offset account will cost less over 30 years than a loan at 5.74% with no offset, assuming you maintain even modest savings.
For a complete step-by-step breakdown, see our first home buyer guide. You can also check current grant amounts in our First Home Owner Grant guide by state and deposit requirements in our home loan deposit guide.
Best Home Loans for Investors
Investment property loans have different pricing and features compared to owner-occupier loans. Investor rates typically run 0.20% to 0.40% above the equivalent owner-occupier rate across all lender types.
What to look for: Interest-only repayment options (typically available for up to 5 years), multiple property discounts for portfolio borrowers, flexible loan structuring for tax-effective borrowing, and a lender experienced with investor lending policies.
Interest-only vs principal and interest. Many investors choose interest-only repayments for tax purposes, as only the interest component is tax-deductible. However, interest-only rates carry a premium of approximately 0.20% to 0.40% above principal and interest rates. Your broker can model which option produces the better after-tax outcome for your situation.
Loan structuring. How you structure your investment loan matters for tax. Keeping investment debt separate from owner-occupier debt, using the right offset and redraw strategy, and choosing the correct repayment type can make a significant difference to your after-tax position. For more on negative gearing and tax strategy, see our negative gearing guide. For a full overview of investment lending, see our investment loans guide.
Best Home Loans for Refinancing
Refinancing means replacing your existing home loan with a new one, usually to get a lower rate, access equity, or consolidate debt.
When to refinance. If your current variable rate is more than 0.50% above the best available rate for your loan type and LVR, refinancing is likely worth investigating. On a $500,000 loan, a 0.50% rate reduction saves approximately $165 per month or $59,000 over the remaining loan term.
What to check before switching. Break costs (if you are on a fixed rate), discharge fees from your current lender (typically $300 to $400), whether your new loan charges application or settlement fees, cashback offers and their clawback periods (most require you to stay for 3 to 4 years or repay the cashback), and whether your current lender will match or beat the new rate to retain you.
For a detailed walkthrough of the refinancing process, see our refinancing guide.
Best Low-Fee Home Loans
A low headline rate does not always mean a cheap loan. Some lenders offer sharp rates but charge annual fees, monthly offset fees, or high discharge costs that erode the savings.
Comparison rate vs headline rate. The comparison rate is designed to show the true cost of a loan by factoring in most fees and charges. If a loan has a headline rate of 5.74% but a comparison rate of 5.94%, the 0.20% gap tells you there are significant ongoing fees. A loan with a headline rate of 5.84% and a comparison rate of 5.86% is likely a cleaner, lower-fee product.
Fees to watch:
- Annual or monthly fees. Some lenders charge $250 to $395 per year for their lowest rate products. Over 30 years, that adds $7,500 to $11,850 to the total cost.
- Application fees. Range from $0 to $600. Many lenders waive application fees for broker-introduced loans.
- Discharge fees. Charged when you pay off or refinance your loan. Typically $300 to $400, but some lenders charge more.
- Offset account fees. Some lenders charge $10 to $15 per month for offset access. That is $120 to $180 per year on top of the loan rate.
The best low-fee home loans combine a competitive rate with no annual fees, no offset fees and reasonable discharge costs. Your broker can identify which loans genuinely have the lowest total cost after all fees are included.
How We Compare
We compare rates from 60+ lenders on our accredited panel. Rates shown in this guide are based on a $500,000 loan at 80% LVR for a standard residential property, owner-occupier, principal and interest repayments. Your actual rate depends on your specific scenario, including your loan amount, deposit size, employment type, property type and location.
All rates are sourced directly from each lender's current pricing as at the date of this article. Rates change frequently and the rates shown may have changed since publication.
These are real rates from Lendera's lender panel, not marketing ranges or teaser rates. Use our comparison tool to see the exact rate you qualify for based on your specific borrowing scenario.
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