Australian Home Loan Rate Trends: September 2025 to March 2026

Monthly Rate Summary Table

The table below shows the average owner-occupier home loan rates across Lendera's panel of 60+ Australian lenders at the end of each month. All rates are based on principal and interest repayments at 80% LVR.

Data sourced from Lendera's live lender panel of 60+ institutions. Rates checked in the final week of each calendar month. Based on $500,000 loan at 80% LVR, owner-occupier P&I.

Key Observations

Over the seven months from September 2025 to March 2026, the average owner-occupier variable rate has fallen 38 basis points from 6.27% to 5.89%. This represents a meaningful shift for borrowers. On a $500,000 loan, a 38 basis point reduction translates to approximately $115 less in monthly repayments, or roughly $1,380 saved per year.

The largest single monthly drop came in February 2026, when variable rates fell approximately 16 basis points following the RBA's first rate cut of the easing cycle. The 25 basis point cash rate reduction from 4.35% to 4.10% was partially passed through by most lenders within two to four weeks of the announcement. Some lenders passed on the full 25 basis points, while others retained a small margin.

Fixed rates have moved more gradually than variable rates over the same period. The average 2-year fixed rate has declined 35 basis points from 6.34% to 5.99%, while the 3-year fixed has dropped 34 basis points from 6.49% to 6.15%. This slower movement reflects the fact that fixed rate pricing is driven by swap rates and bond markets, which had already priced in some of the expected easing well before the RBA acted.

The gap between variable and fixed rates has narrowed significantly. In September 2025, the average variable rate sat 7 basis points below the 2-year fixed rate. By March 2026, the gap had narrowed to 10 basis points, with variable (5.89%) still sitting below the 2-year fixed (5.99%). This inverted relationship, where variable is cheaper than fixed, is unusual historically and signals that markets expect further rate cuts ahead.

RBA Cash Rate History

The Reserve Bank of Australia sets the cash rate target at its scheduled meetings throughout the year. The table below shows the decisions relevant to the period covered by this page.

After holding the cash rate at 4.35% for over a year, the RBA delivered a 25 basis point cut in February 2026 as inflation data showed sustained progress toward the 2-3% target band. The Board held again in March 2026, signalling a cautious approach to further easing. Market consensus as of March 2026 expects one more 25 basis point cut before year end, which would bring the cash rate to 3.85%.

For a full breakdown of the March 2026 decision, see our RBA Rate Decision: March 2026 analysis.

What This Means for Borrowers

If you are on a variable rate, you have likely already seen some relief in your repayments over recent months. However, the amount passed through depends on your lender. Some borrowers on older variable products may not have received the full benefit of competitive pressure. If your rate is still above 6.00%, it is worth reviewing whether a better deal is available.

If you are on an older fixed rate about to expire, the current variable rates may still be lower than your original fixed rate from 2023 or 2024. Many borrowers who fixed at rates between 5.50% and 6.50% during the hiking cycle are now rolling off to variable rates that are competitive or even lower. Compare your options before your fixed term ends to avoid reverting to your lender's default variable rate, which is typically well above market.

Refinancing activity has increased as the gap between back-book rates and new customer rates widens. Lenders are competing aggressively for new business, meaning borrowers who have not reviewed their loan in the past 12 months may be paying significantly more than they need to. Even a 0.20% reduction on a $600,000 loan saves roughly $1,200 per year.

Looking ahead, if the RBA delivers another cut later in 2026, variable rate borrowers will benefit further. Those considering fixing should weigh the certainty of fixed repayments against the likelihood of continued variable rate falls. In the current environment, the market is pricing in further easing, which favours variable.

How We Track Rates

All rate data on this page is sourced from Lendera's live lender panel of 60+ Australian institutions, including major banks (CBA, ANZ, NAB, Westpac), second tier banks (ING, Macquarie, Suncorp, Bendigo), non-bank lenders (Pepper, Liberty, Resimac, La Trobe) and credit unions.

Rates are based on owner-occupier principal and interest loans for standard residential property, with a $500,000 loan amount at 80% loan-to-value ratio (LVR). All averages are unweighted arithmetic means across every lender on panel for each category. Rates are checked and recorded in the final week of each calendar month.

Individual rates depend on borrower profile, loan size, property type, LVR, income type and lender credit policy. The figures on this page 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 page is updated monthly. For the latest detailed rate breakdown, see the current monthly rate report.