With the RBA cash rate at 4.10% following February 2026’s rise, Australian home loan rates are elevated by recent historical standards. But there is still a significant spread between lenders — with the best variable rates around 5.35% and many borrowers still paying 6.5% or more. Here is what you need to know.
Current Home Loan Rates — April 2026
What Is a Good Home Loan Rate in 2026?
A good variable home loan rate in April 2026 is anything under 5.75% p.a. If you are paying 6.0% or above on a variable rate loan, you are likely paying more than necessary and should consider refinancing or at minimum calling your lender to negotiate.
| Rate Range | Verdict | Action |
|---|---|---|
| Under 5.50% | EXCELLENT | You have one of the best rates available. Monitor annually. |
| 5.50% – 5.90% | GOOD | Competitive. Review yearly and negotiate. |
| 5.90% – 6.40% | AVERAGE | You could probably do better. Shop around. |
| 6.40% or above | TOO HIGH | Refinance or call your lender immediately. |
How the RBA Cash Rate Affects Your Mortgage
Most variable rate home loans move within 2–4 weeks of an RBA decision. But lenders don’t always pass the full rate move on — sometimes they pass on more (as happened in some 2022–23 rises) and sometimes less. The February 2026 rise of 0.25% has been passed on in full by most major banks.
5 Ways to Get a Lower Rate Right Now
- Call your lender and ask. This works surprisingly often. Quote the best available rate and ask them to match it. Retention teams can often reduce your rate by 0.25–0.5% without a full refinance.
- Refinance to a lower rate lender. The difference between 6.0% and 5.4% on $600,000 is over $3,600/year.
- Increase your LVR. If your property has increased in value and your LVR is now under 80%, you may qualify for better rates.
- Fix part of your loan. A split loan (part variable, part fixed) can reduce blended rate risk.
- Reduce credit card limits. High credit card limits reduce your refinancing eligibility and can lock you into higher rates.
Compare Home Loan Rates Now
See the lowest home loan rates available in Australia and calculate your monthly repayments.
Home Loan Calculator →
Refinancing Guide 2026 →
Disclaimer: General information only. Not financial advice. Consult a licensed professional before making financial decisions.