Best Home Loan Rates Australia (2026)
Variable mortgage picks ranked by rate, features, and lender type. Last updated: 18/05/2026
Rates can change without notice. Last verified: 18/05/2026 (AEST). Please confirm details on the bank’s official page.
Variable home loan rates have shifted significantly as the RBA adjusted the cash rate. The gap between the cheapest non-bank lenders and the big four is now over 0.80% p.a. — on a $600,000 loan that's roughly $5,000 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 available (5.59%)
- ✓ Competitive investment rate too (5.84%)
- ✓ 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
WestpacFlexi First Option (Online Offer)
Westpac's online-only discounted rate is the most competitive among the big four. Unlimited extra repayments, free redraw, and the full Westpac branch and phone support network. Apply online to access the discounted pricing.
Pros
- ✓ Best big-four variable rate
- ✓ Unlimited extra repayments + free redraw
- ✓ Full branch and phone support
- ✓ Investment lending available
Cons
- ✗ Must apply online for discounted rate
- ✗ Rate 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 → |
| People's Choice | 5.64%<70% LVR | 5.65% | OO P&I only published. LVR tiers shown. Investment and IO rates available on application. | Review → |
| Unloan (CBA) | 5.69%≤80% LVR | 5.60% | Refinance only (not new purchases). 0.01% p.a. loyalty discount per year, max 0.30%. P&I only. | Review → |
| Up Home | 5.70% | 5.70% | OO P&I only. Free 100% offset, no fees. Rates published in-app only — confirm before applying. | Review → |
| Macquarie Bank | 5.84%≤60% LVR | 5.86% | No offset on Basic. Offset Home Loan available (+0.25% higher comp rate due to annual fee). | Review → |
| HSBC Australia | 5.99%≤60% LVR | 6.00% | No-frills variable loan. No offset, no annual fee. Full LVR rate schedule published. | Review → |
| Westpac | 5.99%≤70% LVR | 6.00% | Online Offer pricing — apply online. Big-four bank. Discounted rate vs standard variable. | 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 → |
| ING | 6.14%≤80% LVR | 6.17% | No ongoing fees. Unlimited extra repayments and free redraws. Min loan $150,000. | 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 → |
| NAB | 6.44% | 6.44% | Entry-level variable rate with no frills. Tailored Home Loan offers lower rates 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 0.10–0.20% p.a. more for offset access may be worthwhile.
2. Understand what the comparison rate includes
The comparison rate is calculated on a standardised $150,000 loan over 25 years, which means it overstates the impact of fees on larger loans. For a $700,000 loan, a $400 annual fee has far less impact per dollar borrowed than the comparison rate implies. Use it as a guide, not an absolute measure.
3. Know your LVR before you compare
Most lenders offer tiered rates based on your LVR (loan-to-value ratio). A borrower at 60% LVR will typically access better rates than one at 85%. Work out your LVR before comparing — the "best rate" headline may only apply to LVRs below 70%.
4. Factor in the cost of switching
Refinancing to a lower rate typically costs $300–$1,000 in discharge and application fees. On a $500,000 loan, a 0.30% rate reduction saves ~$1,500/year — so most refinances pay for themselves within the first year. The key question is how long you plan to stay in the new loan.
5. Don't ignore the revert rate
Some lenders offer sharp introductory rates that revert to a much higher standard variable rate after 1–2 years. Always check the revert rate and set a calendar reminder to compare again before the intro period ends.
In-depth Reviews
- Pacific Mortgage Group Owner Occupied Variable review — 5.59% p.a. OO P&I (comp. 5.59%)
- People's Choice Basic Variable review — 5.64% p.a. OO P&I <70% LVR (comp. 5.65%)
- Unloan (CBA) Refinance Variable review — 5.69% p.a. OO P&I ≤80% (comp. 5.60%)
- Up Home Variable Rate Loan review — 5.70% p.a. OO P&I (comp. 5.70%) — rates in-app
- Macquarie Bank Basic Home Loan review — 5.84% p.a. OO P&I ≤70% LVR (comp. 5.86%)
- HSBC Australia Home Value Loan review — 5.99% p.a. OO P&I ≤60% LVR (comp. 6.00%)
- Westpac Flexi First Option (Online Offer) review — 5.99% p.a. OO P&I ≤70% LVR (comp. 6.00%)
- loans.com.au Variable Home Loan (Bare) review — 6.04% p.a. OO P&I (comp. 6.08%)
- ING Mortgage Simplifier review — 6.14% p.a. OO P&I ≤80% LVR (comp. 6.17%)
- St.George Basic Home Loan review — 6.29% p.a. OO P&I ≤70% LVR (comp. ~6.30%)
- CommBank Standard Variable Rate (Wealth Package) review — 6.34% p.a. OO P&I ≤60% LVR (comp. 6.72%)
- NAB Base Variable Rate Home Loan review — 6.44% p.a. OO P&I (comp. 6.44%)
Frequently Asked Questions
What is the lowest home loan rate in Australia right now?
As of May 2026, Pacific Mortgage Group offers the lowest owner-occupied variable rate at 5.59% p.a. (P&I, ≤80% LVR). Among major established banks, Macquarie Bank leads at 5.84% 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
- Best savings accounts — grow your deposit faster before buying
- Best term deposits — lock in a guaranteed rate on your savings
- Bank cash bonuses — cashback offers when switching lenders
Information is general in nature and may change without notice. Rates verified 18/05/2026. Confirm current rates and conditions with each lender before applying. This is not financial advice.