Best Home Loan Rates Australia (2026)
Variable mortgage picks ranked by rate, features, and lender type. Last verified: 24/06/2026
Rates can change without notice. Last verified: 24/06/2026 (AEST). Please confirm details on the bank’s official page.
Variable home loan rates move with the RBA cash rate, and the gap between the cheapest non-bank lenders and the big four is wide — often more than 0.70% p.a., which on a $600,000 loan is thousands of dollars a year in extra interest. We've ranked the top picks by use case to help you find the right fit.
Our Top Picks for 2026
Pacific Mortgage GroupOwner Occupied Variable
The lowest owner-occupied variable rate in our comparison. PMG is a non-bank lender that consistently leads the market on rate. No frills — no branches, no offset — but for borrowers who want the cheapest rate and manage their own finances, it's hard to beat.
Pros
- ✓ Lowest variable rate in our comparison
- ✓ Competitive investment rate too
- ✓ No ongoing fees
Cons
- ✗ Non-bank lender — no branch access
- ✗ No offset account
- ✗ Smaller brand, less name recognition
Unloan (CBA)Refinance Variable
Refinance-only product backed by CommBank. The unique loyalty discount of 0.01% p.a. per year (capped at 0.30%) means the effective rate gets cheaper the longer you stay — unusual in a market where lenders reward new customers over existing ones.
Pros
- ✓ Growing loyalty discount (up to 0.30% off)
- ✓ Backed by CommBank infrastructure
- ✓ No fees
- ✓ P&I only — simple structure
Cons
- ✗ Refinance only — not for new purchases
- ✗ No offset account
- ✗ P&I only — no interest-only option
Up HomeVariable Rate Loan
A free 100% offset account included from day one — no annual fee, no package fee. Most lenders charge $300–$400/year for offset access. Rates are published in-app only, so verify before applying. OO P&I only.
Pros
- ✓ Free 100% offset account (no package fee)
- ✓ No fees of any kind
- ✓ Modern app-based banking
Cons
- ✗ App-only — no branches
- ✗ OO P&I only — no investment or IO
- ✗ Rates in-app only — less transparent
Macquarie BankBasic Home Loan
Macquarie consistently offers some of the sharpest rates among major established banks, with transparent LVR-tiered pricing. The Basic Home Loan has no offset, but an offset version is available at a small premium. Strong investment lending too.
Pros
- ✓ Sharp rates for an established bank
- ✓ Transparent LVR tiers
- ✓ Investment lending available
- ✓ Offset loan option available
Cons
- ✗ No offset on Basic loan
- ✗ Offset version has annual fee
ANZSimplicity PLUS
ANZ's Simplicity PLUS special offer has the lowest comparison rate of the big four — no setup or ongoing fees, unlimited extra repayments and free redraw, with the full branch and phone network behind it. Requires an eligible ANZ everyday or savings account.
Pros
- ✓ Lowest big-four comparison rate
- ✓ No setup or ongoing fees
- ✓ Unlimited extra repayments + free redraw
- ✓ Full branch and phone support
Cons
- ✗ No offset account on this rate
- ✗ Requires an eligible ANZ transaction account
- ✗ Higher than non-bank alternatives
Full Variable Rate Comparison
All lenders we track, sorted by OO P&I rate (lowest first).
| Lender | OO P&I rate | Comp. rate | Notes | Review |
|---|---|---|---|---|
| Pacific Mortgage Group | 5.59%≤80% LVR | 5.59% | OO and investment P&I at 80% LVR. IO and higher LVR on application. | Review → |
| Unloan (CBA) | 5.89%≤80% LVR | 5.80% | Refinance only (not new purchases). 0.01% p.a. loyalty discount per year, max 0.30%. P&I only. | Review → |
| Reduce Home Loans | 5.94%≤80% LVR | 6.00% | $0 application, monthly, and annual fees. Unlimited redraw. Minimum loan $150,000. No offset account. Non-bank lender. Domain changed from reduce.com.au to reduceloans.com.au. | Review → |
| Up Home | 5.95% | 5.95% | OO P&I only. Free 100% offset, no fees. One variable rate (no LVR tiers). | Review → |
| People's Choice | 5.99%<70% LVR | 6.00% | OO P&I only published. LVR tiers shown. Investment and IO rates available on application. | Review → |
| HSBC Australia | 5.99%≤60% LVR | 6.00% | No-frills variable loan. No offset, no annual fee. Full LVR rate schedule published. | Review → |
| ING | 5.99%≤70% LVR | 6.02% | No ongoing fees. Unlimited extra repayments and free redraws. Min loan $150,000. | Review → |
| loans.com.au | 6.04%≤90% LVR | 6.08% | OO P&I only published. Borrow up to 90% LVR. No monthly fees. Offset sub-account +0.10% p.a. | Review → |
| Bendigo Bank | 6.04%≤80% (Express) LVR | 6.05% | Express: 6.04% p.a. OO P&I ≤80% LVR, refinance only, no ongoing fees, free redraw. Easy: 6.13% p.a. all borrowers, ≤80% LVR. Flex: 6.18% p.a. with 100% offset, up to 95% LVR. Customer-owned bank. | Review → |
| Suncorp Bank | 6.08%≤60% LVR | 6.09% | Better Together Special Offer: requires new-to-bank funds of $150,000+ and a Suncorp Bank transaction account. No ongoing fees. No offset account. Suncorp acquired by ANZ July 2024 — products continue under Suncorp brand. Rates effective 15 May 2026. | Review → |
| Macquarie Bank | 6.09%≤60% LVR | 6.11% | No offset on Basic. Offset Home Loan available (+0.25% higher comp rate due to annual fee). | Review → |
| St.George | 6.29%≤70% LVR | 6.30% | Permanent special offer discount applied to new applications. No establishment or monthly fees. Unlimited extra repayments and free redraw. Westpac Group subsidiary. Same rates available via Bank of Melbourne and BankSA. | Review → |
| CommBank | 6.34%≤60% LVR | 6.72% | Wealth Package includes $395/year annual fee (accounted for in comparison rate). Multiple offset accounts, unlimited extra repayments, loan splitting, up to 5 years interest-only available. Australia's largest mortgage lender. Comparison rate based on $150,000 over 25 years. | Review → |
| ANZ | 6.39%≤60% LVR | 6.39% | Special offer rate (effective 15 May 2026). No setup or ongoing fees. Unlimited extra repayments and free redraw. No offset account. Requires an eligible ANZ everyday or savings account. Standard Variable with offset available separately at higher rate. | Review → |
| Westpac | 6.44%≤70% LVR | 6.45% | Online Offer pricing — apply online. Big-four bank. Discounted rate vs standard variable. | Review → |
| NAB | 6.44% | 6.44% | Entry-level variable rate with no frills. Tailored Home Loan offers lower rates from 6.09% p.a. OO P&I at ≤60% LVR, based on LVR and circumstances. | Review → |
Rates shown are the best available OO P&I tier. Comparison rate based on $150,000 over 25 years. Verify with lender before applying.
How to Choose a Home Loan
1. Rate vs features trade-off
The cheapest rates often come from non-bank lenders with no offset account and no branches. For a borrower who just wants to repay their loan quickly, that's fine. For someone who relies on an offset account to manage cash flow, paying a slightly higher rate for that feature can be worth it.
2. Look past the headline rate
The comparison rate folds in most fees, so a loan with a low rate but a big annual package fee can cost more than a slightly higher no-fee rate. On a $150,000 balance the comparison rate tells the truer story — but on a large loan the headline rate matters more, because fees are a smaller share.
3. Check the LVR tiers
Most lenders price by loan-to-value ratio: the more equity you have, the lower the rate. The headline rate usually assumes a low LVR (60–80%). If you're borrowing above 80%, expect a higher rate and likely Lenders Mortgage Insurance — factor both in.
4. Owner-occupier vs investment
Investment loans carry higher rates — typically 0.10–0.50% p.a. more — and interest-only options cost more again. The picks above are owner-occupier P&I; check the investment column on the comparison table if that's your case.
5. Refinancers have the upper hand
Lenders compete hardest for refinancers, and some of the sharpest rates (and cashback offers) are refinance-only. If you're not a new borrower, it's worth checking whether your current lender will match a better rate before you switch.
Frequently Asked Questions
What is the lowest home loan rate in Australia right now?
As of 24/06/2026, Pacific Mortgage Group offers the lowest owner-occupied variable rate in our comparison at 5.59% p.a. (P&I). Among major established banks, Macquarie Bank is competitive at 6.09% p.a. Rates change regularly — verify with the lender before applying.
What is a comparison rate on a home loan?
The comparison rate combines the interest rate with most fees and charges into a single annual percentage to help you compare the true cost of loans. It's calculated on a $150,000 loan over 25 years. A loan with a low rate but high fees may have a higher comparison rate than one with a slightly higher rate and no fees.
Should I get a variable or fixed rate home loan?
Variable rates move with the RBA cash rate and currently offer more flexibility — extra repayments, redraw, and offset accounts are usually only available on variable loans. Fixed rates lock in certainty for 1–5 years but typically restrict extra repayments and offset access. Many borrowers split the loan between fixed and variable.
What is an offset account?
An offset account is a transaction account linked to your home loan. The balance in the offset account reduces the principal on which interest is calculated. For example, a $500,000 loan with $50,000 in offset means you only pay interest on $450,000. A 100% offset account gives full dollar-for-dollar reduction.
What does LVR mean on a home loan?
LVR stands for loan-to-value ratio — the amount you're borrowing as a percentage of the property value. A $400,000 loan on an $800,000 property is a 50% LVR. Lower LVR generally means a lower interest rate and no requirement for Lenders Mortgage Insurance (LMI). Most lenders require LMI for LVRs above 80%.
Related guides
- Comparison rate explained — why it matters more than the headline rate
- Offset accounts explained — how an offset cuts interest while keeping cash accessible
- Mortgage repayment calculator — repayments and total interest
- Borrowing power calculator — a ballpark of how much you could borrow
- Best savings accounts — high interest rates with low or no conditions
Information is general in nature and may change without notice. Rates verified 24/06/2026. Confirm current rates and conditions on each lender's website before applying. This is not financial advice.