How Home Loan Interest Rates Work in Australia

Updated August 2026

Home loan interest rates determine how much you pay your lender for borrowing money. Rates vary depending on loan type, lender pricing, market conditions and Reserve Bank of Australia (RBA) decisions.

Fixed vs variable rates

Fixed rates lock in pricing for a set term, while variable rates move with lender pricing and RBA changes.

What affects home loan rates?

• RBA cash rate
• Lender funding costs
• Borrower risk profile
• Loan type and features

Compare home loans

Use our comparison tool to review fixed, variable and low‑deposit home loans from Australian lenders.