Australian Home Loan Rate Report: March 2026

Key Findings

• The RBA raised the cash rate by 25 basis points to 4.10% on 18 March 2026, the second hike of the new tightening cycle that began in February.
• The average owner occupier variable rate across Lendera's panel is 6.14% (comparison rate 6.19%).
• The lowest variable rate on panel is 5.69% from a non bank lender for borrowers at 80% LVR or lower.
• Average 2 year fixed for owner occupiers is 6.29% and average 3 year fixed is 6.45%.
• The Big 4 banks average 6.37% variable for owner occupiers, still above non bank and credit union averages.
• Non bank lenders average 6.03% variable and remain the sharpest segment on panel.
• All Big 4 banks passed on the full 25 basis point hike to variable borrowers by 31 March. Macquarie followed on 2 April.
• RBA decision 5 May (4 days away): All Big 4 banks expect a 25bp hike to 4.35%. Westpac's economics team forecasts three more hikes after that (June, August) taking the peak to 4.85%, while ANZ, CBA and NAB expect a hold after May.

The March RBA Hike

On 18 March 2026 the Reserve Bank of Australia raised the cash rate target from 3.85% to 4.10%. This was the second 25 basis point rise in the new tightening cycle, following a hike of the same size on 4 February 2026. Before the February hike, the cash rate had been held at 3.60% since the August 2025 cut that concluded the previous easing cycle.

The Board pointed to persistently elevated inflation and the pass through of higher fuel and oil derived prices as the main drivers. Headline inflation is running well above the 2 to 3% target band, and Westpac economists now expect headline CPI to peak around 5.4% in the June quarter with trimmed mean inflation peaking near 4%. The Board's language shifted more hawkish in the March statement, explicitly leaving the door open to further increases.

Pass through to home loan rates was fast. All Big 4 banks confirmed 25 basis point increases to variable home loan rates within days of the decision. CBA, ANZ and NAB took effect on 27 March, Westpac on 31 March, and Macquarie on 2 April. Second tier banks, non banks and most credit unions followed suit over the following fortnight. The March column of the month on month table below captures the full impact of the hike.

Variable Rates Overview

Rates as of 6 April 2026, after full pass through of the March RBA hike. Based on $500,000 loan, 80% LVR.

Fixed Rates Overview

Fixed rates have been repriced upward across the panel as lenders lock in expectations of further RBA tightening. The steepest moves have been in the 2 to 5 year terms, where lenders are pricing some of the Westpac forecast path into new business. A handful of lenders have taken fixed rates for higher LVR owner occupier and investor borrowers above 7.00%, the first time that has happened in more than a year.

For a detailed framework on fixing in a rising rate environment, see our fixed vs variable guide for 2026.

Rate by Lender Type

Non bank lenders continue to offer the sharpest rates on panel, even after passing on the full RBA hike. The gap between non banks and the Big 4 has narrowed very slightly this month as non banks responded to competitive pressure on the way up. For borrowers who prioritise rate, non banks remain the obvious choice. For borrowers who want full feature offset and redraw products, second tier banks such as ING, Macquarie and Suncorp sit in a useful middle ground.

Month on Month Rate Changes

The following table compares average rates from February 2026 to March 2026 across Lendera's panel of 60+ Australian lenders. This is the first month in the series to capture a full 25 basis point RBA hike within the reporting window.

Data sourced from Lendera's live lender panel of 60+ institutions. Rates captured after full pass through of the March RBA hike. Based on $500,000 loan at 80% LVR.

Rate Trends

The Australian rate cycle has turned. After three 25 basis point cuts between February and August 2025 that took the cash rate from 4.35% down to 3.60%, the RBA held through the last quarter of 2025 before pivoting to hikes in February 2026. Two back to back 25 basis point rises have lifted the cash rate back to 4.10%, matching the level that held for most of 2024.

Variable home loan rates on panel have tracked the RBA move closely. The average owner occupier variable is now approximately 50 basis points higher than the low in January 2026, consistent with full pass through of the February and March hikes. Fixed rates moved further, with the 2 and 3 year averages rising by more than 50 basis points over the same window as lenders priced in expected future tightening.

Refinance volumes on the Lendera platform dropped briefly in late March as borrowers paused to see where rates would settle, then rebounded in early April as those already above the panel average moved to lock in the lowest remaining variable rates before any further hikes. Investors have been more active than usual, particularly those rolling off lower fixed rates set in late 2024.

RBA Outlook

With the cash rate back at 4.10%, the question is how much further the RBA will tighten. The Big 4 forecasts diverge:

Westpac is the outlier. Its economics team has warned that the pass through of higher fuel and oil derived prices is likely to push the RBA into tightening more aggressively than the market currently expects. The other three majors see one final hike in May, then a hold for the rest of 2026.

The next RBA meeting is 5 May 2026. A May hike is the base case across all four majors, so variable borrowers should plan for another 25 basis points of pass through within a fortnight of that decision. Whether the Board stops there or keeps going depends on the Q1 inflation print (due late April) and the April labour force data.

What Borrowers Should Do

If your lender has not yet passed on the March hike, you are paying slightly less than you will be in the next few weeks. Use the window to review your rate against the panel and have a conversation with your broker before the May meeting.

If you are on a variable rate above 6.30%, you are now paying more than the panel average even after the hike. Competition among non banks and second tier lenders means sharper rates are available, and a review could save thousands over the life of your loan.

If you are considering fixing, run the numbers carefully. Fixed rates are priced above variable and already embed some of the Westpac forecast path. Fixing protects against the Westpac scenario but gives up upside in the ANZ, CBA and NAB base case of only one more hike.

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, and another hike may land before your term ends.

If you are an investor, review both your P&I and IO rates. Investor rates have moved in line with owner occupier this cycle, but some lenders have repriced IO more aggressively than P&I, so the sharpest IO deals are now concentrated in fewer names.

Methodology

All rates in this report are sourced from Lendera's live rate database, which mirrors advertised and negotiated rates from our panel of 60+ Australian lenders. The panel includes major banks (CBA, ANZ, NAB, Westpac), second tier banks (ING, Macquarie, Suncorp, Bendigo), non bank lenders (Pepper, Liberty, Resimac, La Trobe) and credit unions.

Panel averages, ranges and lender type breakdowns are recomputed on every rebuild of this page. Stats are based on a $500,000 loan amount at 80% loan to value ratio (LVR) for a standard residential property. All averages are unweighted arithmetic means across every lender on panel for each category. The March 2026 rates were captured on 6 April, after full pass through of the 18 March RBA decision.

Individual rates depend on borrower profile, loan size, property type, LVR, income type and lender credit policy. The rates in this report represent general market positioning and should not be taken as a personal quote. Use Lendera's rate comparison tool to see rates specific to your situation.

This report is published monthly by Lendera. Next edition: April 2026 Rate Report (published early May, after the 5 May RBA decision).

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.

Read more about Vish and the Lendera team →