Best Home Loans in Australia 2026: Rates Compared

Quick Answer

The best home loan rate in Australia as of March 2026 is 5.69% 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 6.37% for comparable loans after the March RBA hike to 4.10%. The best rate for you depends on your deposit size, whether you are buying or refinancing, and which loan features matter to you. Rates on this page are refreshed from Lendera's live rate database on each site rebuild.

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.

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 rates are currently higher than variable across all terms because the market is pricing in further RBA hikes in 2026. The next RBA decision is 5 May 2026 with all Big 4 banks expecting a 25bp hike to 4.35%. After that, Westpac expects two more hikes to 4.85%, while ANZ, CBA and NAB expect a hold. Fixing now locks in a higher starting point but protects you from further hikes. Staying variable keeps your rate lower today and leaves you exposed to any additional increases. For a detailed comparison of the trade offs, see our fixed vs variable guide for 2026.

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.

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.

Vish

Founder and Licensed Mortgage Broker

Vish studied medicine and law at the University of Sydney before switching to finance broking after no one would help him get a loan for his first property. He bought 3 properties before turning 24 and started Lendera because he believes borrowers deserve transparency, not gatekeeping. You can compare rates from 60+ lenders without entering any personal details, access the Home Loans Academy and first home buyer and refinancing checklists at no cost, and speak to his team of brokers when you are ready.

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