Australian Home Loan Rate Report: March 2026

Key Findings

• The average owner-occupier variable rate across Lendera's panel is 5.89% (comparison rate 5.94%).
• The lowest variable rate available is 5.74% from a non-bank lender for borrowers with 80% LVR or lower.
• Fixed rates remain higher than variable. The average 2-year fixed rate is 5.99%, and the average 3-year fixed is 6.15%.
• The Big 4 banks average 6.12% variable for owner-occupiers, roughly 0.23% above the panel average.
• Non-bank lenders offer the most competitive rates, averaging 5.78% variable.
• The RBA held the cash rate at 4.10% at its March 2026 meeting. Markets are pricing in one more 25bp cut before year end.

Variable Rates Overview

Rates as of 27 March 2026. Based on $500,000 loan, 80% LVR.

Fixed Rates Overview

Fixed rates remain above variable rates, which is unusual historically and reflects market expectations that the RBA will cut the cash rate further. Fixing now locks in a higher rate than you would pay on variable. However, if the RBA pauses or reverses course, fixed borrowers would be protected.

For a detailed breakdown of how to choose between fixed and variable, see our fixed vs variable home loan guide.

Rate by Lender Type

Non-bank lenders continue to offer the sharpest rates. The trade-off is that some non-bank products have fewer features (no offset, limited redraw). For borrowers who prioritise rate above all else, non-banks are worth considering. For borrowers who want full-feature products, second tier banks like ING, Macquarie and Suncorp offer a strong middle ground.

Rate Trends

Rates have dropped approximately 0.50% since the RBA began its easing cycle. Variable rates have passed through more of the cuts than fixed rates, which had already partially priced in expected reductions.

Competition among non-bank lenders has intensified, pushing rates to their lowest levels in 12 months. Owner-occupier P&I rates have compressed more than investor rates, as lenders compete hardest for lower-risk owner-occupier borrowers.

The gap between the Big 4 banks and non-bank lenders has widened slightly this quarter. Major banks have been slower to pass on competitive pressure, while non-banks and second tier lenders have moved more aggressively to attract new borrowers.

RBA Outlook

The RBA held the cash rate at 4.10% at its March 2026 meeting. The Board noted that inflation is continuing to moderate but remains above the 2-3% target band.

The next RBA meeting is in April 2026. Market consensus expects one more 25bp cut to 3.85% before year end, though the timing remains uncertain.

If the RBA cuts again, variable rates should drop by a similar amount within 2 to 4 weeks as lenders pass on the reduction. Fixed rates may not drop further, as they have already partially priced in expected cuts.

What Borrowers Should Do

If you are on a variable rate above 6.00%, you are likely paying more than you need to. A rate review could save you thousands over the life of your loan. Competition among lenders means better deals are available right now.

If you are considering fixing, the current market favours variable unless you strongly value payment certainty. Fixed rates are above variable, and further RBA cuts would widen that gap.

If your fixed term is expiring in the next 3 months, start comparing now. The revert rate will almost certainly be higher than what you can negotiate with your current lender or a new one.

If you are an investor, review your interest-only rates carefully. IO rates have dropped less than P&I rates this cycle, and some lenders are offering sharper deals than others.