Current Home Loan Interest Rates Australia 2025

Important Information

Esteb and Co provides credit assistance services. We are licensed credit representatives (ASIC Credit Rep #574070) who help you compare loan options from our panel of lenders. We do not lend money directly. All loan approvals are made by lenders, subject to their criteria and responsible lending assessments. Our service is free to you - we receive commissions from lenders. Read our Credit Guide

Owner-Occupied Variable Rates

Principal & Interest, LVR <80%

Lender	Rate	Comparison Rate	Features
Online Bank A Lowest Rate	5.89%	6.02%	✓ Offset account ✓ Free redraw ✓ $0 monthly fee	Check Options
Commonwealth Bank	6.24%	6.38%	✓ Offset account ✓ Redraw available ✓ Branch access	Check Options
Westpac	6.29%	6.42%	✓ Offset account ✓ Extra repayments ✓ Rate lock available	Check Options
NAB	6.19%	6.32%	✓ 100% offset ✓ Unlimited redraws ✓ Package discounts	Check Options
ANZ	6.34%	6.47%	✓ Offset available ✓ Extra repayments ✓ Break costs waived	Check Options
ING $2,000 Cashback	6.19%	6.31%	✓ 100% offset ✓ $0 fees ✓ Fast approval	Check Options

💡 Rates shown are indicative and subject to approval. Your actual rate may differ based on your circumstances.

Fixed Rate Comparison

Owner-Occupied, Principal & Interest

1 Year Fixed

From 6.09%

Average: 6.35%

Good for: Short-term certainty, expecting rate cuts soon

3 Year Fixed

From 5.99%

Average: 6.22%

Good for: Balance of certainty and competitive rates

5 Year Fixed

From 6.29%

Average: 6.48%

Good for: Maximum certainty, long-term planning

Understanding Interest Rates

🔄 Variable Rates

Pros:

Can decrease if market rates fall
More flexible (extra repayments, offset accounts)
No break costs if you refinance
Usually come with more features

Cons:

Can increase if market rates rise
Less certainty for budgeting
Exposed to rate movements

Best for: People who want flexibility and can handle rate rises

🔒 Fixed Rates

Pros:

Rate locked in for 1-5 years
Certainty for budgeting
Protected from rate rises
Peace of mind

Cons:

Won't benefit if rates fall
Break costs if you exit early
Limited extra repayments (usually $10-30k/year)
Fewer features (usually no offset)

Best for: People who want certainty and protection from rate rises

⚖️ Split Loans

Pros:

Best of both worlds (e.g., 50% fixed, 50% variable)
Partial protection from rate rises
Flexibility on variable portion
Diversified risk

Cons:

More complex to manage
Two separate loan accounts
May have two sets of fees

Best for: People who want some certainty but also flexibility

What Affects Your Interest Rate?

📊

LVR (Loan-to-Value Ratio)

High Impact

How it works:

LVR <60%: Best rates (sometimes 0.2% discount)
LVR 60-80%: Standard rates
LVR 80-90%: Higher rates + LMI required
LVR 90-95%: Highest rates + LMI

Tip: Aim for <80% LVR to avoid LMI and get better rates

💰

Loan Amount

Medium Impact

How it works:

$250k+: Most lenders competitive
$500k+: Access to premium rates
$1M+: Professional packages available
<$150k: Limited lenders, higher rates

Tip: Larger loans often get better rates (economies of scale)

🏠

Loan Purpose

High Impact

How it works:

Owner-occupied: Best rates
Investment: +0.3-0.5% higher
Construction: +0.2-0.4% higher
Refinance: Usually same as purchase

Tip: Owner-occupied loans always get better rates

💳

Credit Score

Medium Impact

How it works:

800+: Excellent - best rates
700-799: Good - standard rates
600-699: Fair - limited options
<600: Poor - specialist lenders only

Tip: Check your score free before applying

📝

Documentation Type

Medium Impact

How it works:

Full doc (PAYG): Best rates
Low doc (self-employed): +0.5-1.0% higher
Alt doc: +1.0-2.0% higher
No doc: Very limited, high rates

Tip: Provide full documentation if possible

⏰

Repayment Type

Low Impact

How it works:

Principal & Interest: Standard rates
Interest Only: +0.3-0.5% higher
I/O usually 1-5 years max
Converts to P&I after I/O period

Tip: P&I builds equity faster and costs less

What Rate Can YOU Get?

Advertised rates are just starting points. Your actual rate depends on your LVR, loan amount, credit score, and more. Get your personalized rate in 2 minutes.

✓ Personalized rate (not advertised rate)

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Richard (Ricky) Esteb

Licensed Mortgage Broker & Founder

Credit Rep #574071 ACN 681 636 056 83+ Lender Panel

With direct experience helping Australians secure home loans, car finance, and business funding, Ricky founded Esteb and Co to bring transparency and technology to mortgage broking. Every piece of content is written from real-world lending experience.

✓ Verified & Last Reviewed: December 2025 | Content meets ASIC regulatory requirements