What are the current interest rates on home loans?

AMANDA HORSWILL
Digital Editor · 1 September 2021
Interest rates have never been as low in Australia as they are right now. How does your home loan stack up? We’ve taken a look at the current interest rates on Canstar’s database of more than 3,000 loans, and found there’s a big difference between the highest and lowest rates.

Competition is fierce in the home loan market right now. With the property market rebounding strongly from the economic impacts of COVID-19, lenders have slashed their home loan interest rates – with some having now fallen to less than 2%.

Below is a summary of the current home loan rates on Canstar’s database. To explore rates in more detail, compare them with Canstar’s home loan selector.


Latest Owner-Occupier Principal and Interest Home Loans

Rate Statistics, as at 31 August, 2021
Variable Fixed
Basic Standard Package Overall 1 Year 2 Year 3 Year 4 Year 5 Year
Average 2.91% 3.36% 2.96% 3.16% 2.25% 2.20% 2.29% 2.59% 2.80%
Min 1.99% 1.88% 1.99% 1.88% 1.69% 1.79% 1.85% 2.14% 2.47%
Max 5.04% 5.29% 4.51% 5.29% 3.64% 3.54% 3.64% 3.64% 3.64%

Source: www.canstar.com.au. Based on owner-occupier loans available for $500,000, at 80% LVR with principal & interest repayments on Canstar’s database. Excludes introductory and first home buyer-only home loans.


Latest Owner-Occupier Interest-Only Home Loans

Rate Statistics, as at 31 August, 2021
Variable Fixed
Basic Standard Package Overall 1 Year 2 Year 3 Year 4 Year 5 Year
Average 3.40% 3.87% 3.52% 3.66% 2.96% 2.95% 2.98% 3.32% 3.43%
Min 2.49% 2.34% 2.85% 2.34% 1.79% 1.89% 1.99% 2.34% 2.49%
Max 5.04% 5.39% 4.51% 5.39% 3.95% 3.89% 3.89% 4.24% 4.24%

Source: www.canstar.com.au. Based on owner-occupier loans available for $500,000, at 80% LVR with interest-only payments on Canstar’s database. Excludes introductory and first home buyer-only home loans.

Compare Home Loans with Canstar

If you’re currently considering a home loan, the comparison table below displays some of the variable rate home loans on our database with links to lenders’ websites that are available for first home buyers. This table is sorted by Star Rating (highest to lowest), followed by comparison rate (lowest-highest). Products shown are principal and interest home loans available for a loan amount of $350K in NSW with an LVR of 80% of the property value and that offer an offset account. Before committing to a particular home loan product, check upfront with your lender and read the applicable loan documentation to confirm whether the terms of the loan meet your needs and repayment capacity. Use Canstar’s home loans comparison selector to view a wider range of home loan products. Canstar may earn a fee for referrals.

*Comparison rate based on loan amount of $150,000 and a term of 25 years. Read the Comparison Rate Warning


Latest Investment Principal and Interest Home Loans

Rate Statistics, as at 31 August, 2021
Variable Fixed
Basic Standard Package Overall 1 Year 2 Year 3 Year 4 Year 5 Year
Average 3.30% 3.69% 3.33% 3.50% 2.60% 2.52% 2.59% 2.98% 3.08%
Min 2.19% 2.19% 1.99% 1.99% 1.89% 1.99% 2.09% 2.44% 2.54%
Max 5.04% 5.62% 5.13% 5.62% 4.04% 3.99% 4.09% 4.09% 4.18%

Source: www.canstar.com.au. Based on investment loans available for $500,000, at 80% LVR with principal & interest repayments on Canstar’s database. Excludes introductory and first home buyer-only home loans.


Latest Investment Interest-Only Home Loans

Rate Statistics, as at 31 August, 2021
Variable Fixed
Basic Standard Package Overall 1 Year 2 Year 3 Year 4 Year 5 Year
Average 3.43% 4.01% 3.66% 3.76% 2.85% 2.77% 2.84% 3.19% 3.28%
Min 2.69% 2.44% 2.59% 2.44% 1.99% 2.09% 2.19% 2.64% 2.59%
Max 5.14% 5.87% 5.53% 5.87% 4.29% 4.29% 4.39% 4.39% 4.49%

Source: www.canstar.com.au. Based on investment loans available for $500,000, at 80% LVR and interest-only payments in Canstar’s database. Excludes introductory and first home buyer-only home loans.


Compare Home Loans with Canstar

Lowest interest rates for 1-year fixed home loans

The comparison table below displays some of the 1 year fixed rate investment home loan products on Canstar’s database with links to lenders’ websites available for a loan amount of $350,000 at 80% LVR in NSW, and available for Principal and Interest repayments. The results are sorted by comparison rate (lowest to highest), then by provider name (alphabetically). Before committing to a particular home loan product, check upfront with your lender and read the applicable loan documentation to confirm whether the terms of the loan meet your needs and repayment capacity. Use Canstar’s home loans comparison selector to view a wider range of home loan products. Canstar may earn a fee for referrals.

*Comparison rate based on loan amount of $150,000. Read the Comparison Rate Warning.

Lowest interest rates for 3-year fixed home loans

The comparison table below displays some of the 3 year fixed rate investment home loan products on Canstar’s database with links to lenders’ websites available for a loan amount of $350,000 at 80% LVR in NSW, and available for Principal and Interest repayments. The results are sorted by comparison rate (lowest to highest), then by provider name (alphabetically).Before committing to a particular home loan product, check upfront with your lender and read the applicable loan documentation to confirm whether the terms of the loan meet your needs and repayment capacity. Use Canstar’s home loans comparison selector to view a wider range of home loan products. Canstar may earn a fee for referrals.