Interest Rates & Mortgage Comparison
This page tracks the Reserve Bank of Australia cash rate alongside current owner-occupier mortgage rates from major and second-tier lenders.
The cash rate chart shows the full RBA tightening and easing cycle, with each step change visible so you can see how monetary policy has moved over recent meetings. The lender comparison table covers variable, one-year, two-year and three-year fixed products, allowing a direct read on where the curve is pricing future rate movements. A countdown to the next RBA Board meeting and the prevailing market expectation are shown above so you can frame today's rates against what economists and futures markets are forecasting next.
All figures update as the underlying data feeds refresh. Use them as a reference, not a substitute for advice from a licensed mortgage broker.
Key Takeaways
- The RBA cash rate peaked at 4.35% in November 2023 after thirteen consecutive hikes; the first cut came in February 2025, putting Australia in a cutting cycle.
- Variable mortgage rates move with the RBA within days, while fixed rates are priced off bond markets that already discount expected cuts before they happen.
- Refinancing typically pays off when the rate gap exceeds 0.5% on balances above $300,000, with switching costs of $1,500–$3,000 often offset by $2,000–$4,000 cashback offers.
- Existing customers usually pay 0.3–0.5% more than new customers for the same product — call your lender after every RBA decision and ask for the new-customer rate.
- Fixed rates rarely beat variable in a rate-cut cycle because the saving is already priced in; fix only for budget certainty or near a cycle peak.
RBA Cash Rate
Current Rate
4.35%
Previous Rate
4.10%
Next Meeting
13 days
Market Expectation
hold
Latest Rate Movement
The Reserve Bank lifted the cash rate to 4.35 per cent yesterday, the third increase this year and the highest setting since November 2023. The board landed on the move with an 8–1 vote, a marked hardening from the 5–4 split recorded in March. The single dissenting member preferred to leave the rate at 4.10 per cent.
In its statement, the bank pointed to rising fuel prices stemming from the conflict in the Middle East, alongside early evidence that input cost pressures are washing through into a wider range of goods and services prices.
Lender Rate Comparison
Owner-occupier principal & interest rates
| Lender | Variable | 1yr Fixed | 2yr Fixed | 3yr Fixed |
|---|---|---|---|---|
| Big 4 Average | 6.79% | 6.39% | 6.24% | 6.14% |
| CBA | 6.84% | 6.44% | 6.29% | 6.19% |
| Westpac | 6.79% | 6.39% | 6.24% | 6.14% |
| ANZ | 6.74% | 6.34% | 6.19% | 6.09% |
| NAB | 6.79% | 6.39% | 6.24% | 6.14% |
| Macquarie | 6.59% | 6.19% | 6.04% | 5.99% |
Sources: Reserve Bank of Australia (RBA) official cash rate target, major bank published mortgage rates. Updated as rate decisions are announced.
Understanding the RBA Cash Rate
The cash rate is the interest rate that banks pay to borrow unsecured overnight funds from each other in the interbank market. The Reserve Bank of Australia uses it as its primary monetary policy tool — moving it up to slow inflation, or down to stimulate borrowing and spending.
Changes to the cash rate flow through to variable mortgage rates within days — most lenders pass on RBA moves in full or in part within a fortnight. Existing fixed-rate loans are unaffected for the duration of their fixed term, but new fixed rates priced by lenders generally move in the weeks leading up to anticipated RBA decisions, based on bond market pricing.
When the market expects a hold, lenders rarely reprice. A hike signals more pain for variable borrowers and may prompt a refinance review. A cut creates an opening to renegotiate — call your lender within a week of any RBA decision and ask for the new-customer rate, or use the saving as evidence to refinance.
Fixed vs Variable: How to Choose
| Feature | Variable Rate | Fixed Rate |
|---|---|---|
| Rate movement | Moves with RBA | Locked for term |
| Repayment certainty | Repayments vary | Fully predictable |
| Extra repayments | Usually unlimited | Often capped (e.g. $10k/yr) |
| Break costs | None | Can be tens of thousands |
| Best for | Flexibility, expected cuts | Budget certainty |
A split loan keeps part of the balance variable and part fixed — common splits are 50/50 or 70/30. This gives you offset and extra-repayment flexibility on the variable portion while protecting a chunk of repayments from rate rises on the fixed portion.
Fixing in a rate-cut environment is usually a poor trade: bond markets price expected cuts into fixed rates well before the RBA acts, so the headline saving is often illusory. Fixed rates make most sense when the curve is flat or inverted, when you need budget certainty, or when you genuinely cannot tolerate any further rise in repayments.
How to Read the RBA Rate Cycle
RBA rate cycles historically run two to four years from the first hike to the first cut, with the tightening phase usually shorter and sharper than the easing phase. Recognising where you sit in the cycle is more useful than predicting individual meetings — the trend matters more than the pause.
Position your borrowing strategy to the cycle. Fix at or near the perceived peak when the curve is flat or inverted and economists agree cuts are 6–12 months away. Stay variable near the trough, when fixed rates are higher than variable and the bias is for further cuts. Splitting the loan partway through the cycle hedges both directions.
Banks do not always pass on RBA cuts in full. Track the spread between the cash rate and the average advertised variable rate — when the spread widens after a cut, lenders are pocketing margin and you have grounds to call and ask for a discount. Conversely, banks often pass hikes on in full within a fortnight, and sometimes go beyond.
Current cycle context: the cash rate peaked at 4.35% in November 2023 after thirteen consecutive hikes. The first cut came in February 2025. We are now in a cutting cycle — fixed rates have already priced in further easing, so locking in today usually means paying for cuts the market expects to happen anyway.
Refinancing Guide: Step by Step
- Calculate your current rate and compare to market. Check the comparison table above. If your rate is more than 0.3% above the lowest comparable products, you have a case to refinance.
- Check your LVR. Loan balance divided by current property value. Below 80% you avoid LMI on refinance entirely. Above 80% LMI may be triggered again — factor that into the cost.
- Get three quotes from different lenders directly, or use a mortgage broker who can run comparisons across 30+ lenders in one application.
- Factor in break costs if you are on a fixed rate. Request a written break cost calculation from your current lender — these can run into tens of thousands and often kill the case for switching mid-fix.
- Check cashback offers. Many lenders offer $2,000–$4,000 cashback for refinancing. Weigh the cashback against typical switching costs of $1,500–$3,000.
- Submit your application with the new lender along with your current loan statement, last two payslips, three months of bank statements, and a copy of your current rates notice or property valuation.
- Settlement typically takes four to six weeks. The new lender handles discharge with your current lender — your only job is to sign documents promptly.
When to Refinance
The refinancing decision comes down to whether the rate differential exceeds your switching costs. Typical switching costs run $1,500–$3,000 covering discharge fees, valuation, settlement, and any fixed-rate break costs. A new-lender cashback offer (commonly $2,000–$4,000) can offset these entirely.
The 0.5% rule of thumb: refinancing is generally worthwhile if you can save 0.5%+ per annum on a balance above $300,000. On a $500k loan over 25 years, a 0.5% rate cut saves roughly $1,500 a year — break-even on switching costs in under two years, then pure saving for the remainder of the loan.
Beware the loyalty tax. Existing customers often pay 0.3–0.5% more than new customers at the same lender for an identical product. Check your rate annually against a comparison site, then ask your lender to match the new-customer rate. If they refuse, switch — modern refinancing takes 2–4 weeks with most of the work handled by the new lender.