Last updated 15 October 2026. Lending rates to August 2026, cash rate to the RBA’s 29 September 2026 decision.
The average mortgage interest rate in Australia was 6.21% for owner-occupiers and 6.44% for investors in August 2026, according to the Reserve Bank of Australia (RBA). Those are averages on outstanding home loans across all lenders, fixed and variable. They were recorded before the RBA lifted the cash rate to 4.60% on 29 September 2026, its fourth increase this year.
Borrowers who read the 2024 version of this guide saw a cash rate of 4.35% and average rates a little above 6%. Since then the RBA has cut three times and raised four times. This update sets out where the average sits now, how it got here and how today’s rates compare with the record back to 1959. Every figure comes from the RBA’s published statistics and carries the month it applies to.
What Is the Average Mortgage Interest Rate in Australia in 2026?
The most reliable measure of the average rate is the RBA’s Table F6, “Housing Lending Rates”, which reports the weighted average interest rate actually being paid on Australian home loans each month. It covers every lender that reports to APRA, both variable and fixed loans, and separates owner-occupier from investor lending. The figures below are for outstanding loans across all institutions, which is the broadest series available.
For owner-occupiers
The average rate on outstanding owner-occupier loans was 6.21% in August 2026, up from 5.5% at the end of 2025. New owner-occupier loans funded in August averaged 6.24%, so people borrowing now are paying about the same as the existing loan book. Interest-only loans cost noticeably more, at 6.85% on outstanding owner-occupier balances.
For investors
Investment loans averaged 6.44% on outstanding balances and 6.40% on new loans in August 2026. On outstanding loans, investors are paying about 0.2 percentage points more than owner-occupiers.
Source: RBA Table F6, housing lending rates, outstanding loans, all institutions. Figures are monthly weighted averages and are published to one decimal place.
How Rates Got Here: The Cash Rate Since 2024
Average home loan rates follow the RBA cash rate with a lag of one to two months, because lenders reprice variable loans after each decision and fixed loans only reprice when they roll off. The cash rate path since the last version of this guide explains almost all of the movement in the chart above.
| RBA decision date | Change | Cash rate target |
| November 2023 to early 2025 | Held | 4.35% |
| 18 February 2025 | -0.25 | 4.10% |
| 20 May 2025 | -0.25 | 3.85% |
| 12 August 2025 | -0.25 | 3.60% |
| September to December 2025 | Held | 3.60% |
| 3 February 2026 | +0.25 | 3.85% |
| 17 March 2026 | +0.25 | 4.10% |
| 5 May 2026 | +0.25 | 4.35% |
| 16 June and 11 August 2026 | Held | 4.35% |
| 29 September 2026 | +0.25 | 4.60% |
Source: RBA cash rate target, checked 15 October 2026. Dates are decision dates; each change took effect the following day.
Three cuts during 2025 brought the cash rate down to 3.60%. Three increases between February and May 2026 reversed that easing, and the 29 September increase took the cash rate to 4.60%, a quarter of a point above where it sat before the first 2025 cut. We cover what those 2026 moves have meant for local borrowers in our guide to how RBA rate changes in 2026 are affecting Perth mortgage decisions.
Australia’s Interest Rate History
Year by year since 2015
| December | Cash rate | Banks’ standard variable | Banks’ discounted variable | Average variable rate paid (owner-occupier) |
| 2015 | 2.00% | 5.63% | 4.83% | n/a |
| 2016 | 1.50% | 5.26% | 4.51% | n/a |
| 2017 | 1.50% | 5.22% | 4.51% | n/a |
| 2018 | 1.50% | 5.34% | 4.65% | n/a |
| 2019 | 0.75% | 4.80% | 4.15% | 3.6% |
| 2020 | 0.10% | 4.52% | 3.65% | 3.2% |
| 2021 | 0.10% | 4.52% | 3.45% | 3.0% |
| 2022 | 3.10% | 7.52% | 5.97% | 5.5% |
| 2023 | 4.35% | 8.77% | 7.31% | 6.4% |
| 2024 | 4.35% | 8.77% | 7.07% | 6.3% |
| 2025 | 3.60% | 8.02% | 6.05% | 5.5% |
| 2026 (latest) | 4.60% (Sep) | 8.77% (Sep) | 6.80% (Sep) | 6.2% (Aug) |
Sources: RBA cash rate target; Table F5, indicator lending rates (banks, owner-occupier); Table F6, average rate on outstanding variable owner-occupier loans, which begins in July 2019. Standard variable rates are advertised reference rates, and most borrowers pay a discounted rate below them.
2019 to 2026
The pandemic response pushed rates to record lows. An emergency cut in March 2020 took the cash rate to 0.25%, and a further cut in November 2020 took it to 0.10%, where it stayed until May 2022. By December 2021 the average variable rate on outstanding owner-occupier loans was 3.0%, and new variable loans were being written at an average of 2.6%.
The tightening that followed was rapid. Between May 2022 and November 2023 the cash rate rose 13 times, from 0.10% to 4.35%, and the average outstanding variable rate reached 6.4% by December 2023. Rates held through 2024, eased during 2025 and rose again in 2026.
Source: RBA Table F6, housing lending rates, outstanding loans, all institutions. This series covers all loan types (variable and fixed) and all reporting institutions.
1959 to 2026: the long view
For anything earlier than 2019 the RBA’s longest-running measure is the banks’ standard variable rate for owner-occupiers (Table F5), which goes back to January 1959. It is a headline rate rather than the rate most borrowers actually pay, because lenders discount from it, but it is the only series that lets you compare today’s environment with the 1980s or the 1990s.
On that measure, today’s rates are moderate by historical standards. The standard variable rate peaked at 17.00% from June 1989 to March 1990 and was still 10.49% in mid-1995. Across 2009 to 2020 it ranged between 4.52% and 7.79%, and it sat at its record low of 4.52% from March 2020 to April 2022. It eased to 8.02% during the 2025 cuts and has been 8.77% since May 2026, the same level as at the end of 2023.
Source: RBA Table F5, indicator lending rates, banks’ standard variable rate for owner-occupiers. Standard variable rates are advertised reference rates; most borrowers pay a discounted rate below this figure.
Source: RBA cash rate target
What the RBA Said at Its September 2026 Decision
On 29 September 2026 the RBA’s Monetary Policy Board raised the cash rate by 0.25 percentage points to 4.60%. The decision was unanimous. In its statement, the Board said inflation remained elevated and that some of the upside risks it had flagged in August were materialising, including higher global energy prices.
This article does not forecast where the cash rate goes next. The Board’s remaining 2026 decisions are due on 3 November and 8 December, and we update this page after each one. Two patterns in the published data are worth knowing whichever way the next decision goes:
- Lenders decide how much of each change to pass on, and when. Variable rates usually move within days of a decision, but the amount is up to each lender. Your own rate depends on your lender’s decision each time, not only the RBA’s.
- Fixed rates can move independently of the cash rate. The banks’ 3-year fixed rate indicator rose from 6.74% in August 2026 to 7.02% in September, while the standard variable rate did not change. If you are weighing up fixing, our guide to fixed versus variable rates in Perth sets out the trade-offs in general terms.
What the Average Means for Your Own Loan
The average is a benchmark, not a target. It blends every loan in the country, including older fixed loans, small lenders, large loans with deep discounts and small loans with none. A borrower with a low loan-to-value ratio (LVR) and a clean repayment history may be offered a rate below the average. A borrower with a high LVR, an interest-only investment loan, or a lender that has not repriced recently may be paying above it.
If your rate is well above the 6.21% owner-occupier or 6.44% investor averages, keeping in mind both were measured before the September rise, it is reasonable to ask your lender why. Our article on five signs your home loan rate may be costing you money lists the common reasons, and our guide to how a broad-panel mortgage broker compares rates explains how rate comparison across lenders works in practice.
Frequently Asked Questions
What are the current home loan interest rates in Australia?
In August 2026, the latest RBA data, the average rate on outstanding owner-occupier home loans was 6.21% and on investment loans 6.44%. New owner-occupier loans averaged 6.24%. These figures predate the RBA’s 29 September 2026 increase, which took the cash rate to 4.60%. Individual lender rates vary, so check current offers before comparing.
What has been the average interest rate for the last 20 years?
From October 2006 to September 2026, the banks’ standard variable rate averaged about 6.6% and the banks’ discounted variable rate about 5.7%, based on monthly RBA Table F5 data. Over the past 10 years both were lower, at about 6.4% and 5.2%. The standard variable rate is an advertised reference rate, and most borrowers pay less.
What were the lowest mortgage rates in the past 10 years?
The low point came during the pandemic. The RBA cut the cash rate to a record low of 0.10% in November 2020 and held it there until May 2022. The banks’ standard variable rate sat at 4.52% from March 2020 to April 2022, and the discounted variable rate reached 3.45% in April 2022. New owner-occupier variable loans averaged 2.6% in December 2021.
Want to Know How Your Rate Compares?
If you would like to understand how your current loan sits against the market, our Perth brokers can review your loan and compare it across our lender panel. Read about refinancing with Strategic Mortgages Perth, learn about our investment property lending, or book a free, no-obligation chat.
Sources and method: all rate figures are from the Reserve Bank of Australia’s published data. RBA cash rate target for decisions to 29 September 2026; RBA statistical tables F5 and F6 for lending rates (F6 to August 2026, F5 to September 2026, both published 8 October 2026); RBA Board meeting schedule for decision dates. Averages over 10 and 20 years are simple averages of monthly F5 values. Figures were last checked on 15 October 2026.
Disclaimer: The information provided in this article is general in nature and does not constitute financial, tax, or legal advice. Individual circumstances vary. Interest rate figures are averages published by the Reserve Bank of Australia, current as at 15 October 2026, and are subject to change. Your own rate will depend on your lender, loan type and circumstances. We recommend consulting with qualified professionals before making financial decisions.
