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Australia Mortgage Rates & Limits 2026

Official rates sourced from Reserve Bank of Australia, Canstar average mortgage rates June 2026.

Last updated: 2026-06-27

Current Rates

Parameter	Value
Rba Cash Rate	3.85
Average Variable Rate Owner Occupier	6.28
Average Variable Rate Investor	6.55
Average 2yr Fixed Rate	5.85
Average 3yr Fixed Rate	5.95
Lmi Rate 90 To 95 Ltv Approx	1.5

Parameter	Value
Min Deposit Percent	5
Lmi Threshold Ltv	80
Max Dti Recommended	6
Fhbg Max Home Price Capital City	900,000
Fhbg Max Home Price Regional	750,000
Stamp Duty Fhog Exemption Varies By State	Yes
Max Interest Only Term Years	5

›Most Australian mortgages are variable rate, repriced when the RBA changes the cash rate. Fixed rates locked in during 2021-22 at historic lows have since expired, causing significant payment shock as borrowers refinance.
›Lenders Mortgage Insurance (LMI) is required when LVR exceeds 80%. LMI protects the lender (not the borrower) and can cost 1–3% of the loan amount. It can be capitalised into the loan but increases total interest paid.
›Offset accounts are widely used in Australia: the linked savings balance offsets the mortgage balance for interest calculations, earning a tax-free return equal to the mortgage rate.
›APRA requires lenders to assess borrowers' ability to repay at 3% above the product rate (the 'serviceability buffer'). This is designed to confirm borrowers can handle rate rises.
›First Home Owner Grants and stamp duty concessions vary widely by state. Check your state revenue office for current thresholds and amounts.