Home loan interest rates below the 5% mark have disappeared from the mortgage market.

They began emerging - mainly as fixed rates - after the Reserve Bank of Australia's decision to cut the cash rate in August 2025.

At the time, fixed rate home loans held little appeal to mortgage holders amid the prevailing sentiment there would be more cuts to the cash rate on the way.

But by the end of 2025, fixed rates were back in borrowers' sights as expectations of a cash rate increase firmed in response to rekindled inflation in the Australian economy.

See also: Should you fix your home loan interest rate?

At its first meeting of 2026, on 2-3 February, the Reserve Bank's monetary policy board raised the cash rate by 25 basis points to 3.85%, the first hike in more than two years.

See also: Current interest rates Australia

It effectively spelled the end of home loan rates under 5%.

This article may be updated at some time in the future when we begin to see interest rates dip below the 5% benchmark, but it may not be for some time. 

If you're in the market for a home loan, the table below will give you an idea of some of the most competitive interest rates currently available on the market.

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LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Extra Repayments Split Loan Option TagsFeaturesLinkComparePromoted ProductDisclosure
5.94% p.a.
5.98% p.a.
$2,978
Principal & Interest
Variable
$0
$530
90%
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 10% Min Deposit
  • Redraw
  • Extra Repayments
  • More details
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Dedicated loan specialist throughout the loan application.
 Disclosure
5.89% p.a.
5.80% p.a.
$2,962
Principal & Interest
Variable
$0
$0
80%
  • Built and funded by CommBank
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 20% Min Deposit
  • Redraw
  • More details
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
 Disclosure
5.99% p.a.
6.02% p.a.
$2,995
Principal & Interest
Fixed
$0
$0
60%
  • Owner Occupier
  • Fixed 3 Years
  • Principal & Interest
  • 40% Min Deposit
  • Redraw
  • More details
  • Competitive rates to help you save
  • A Dedicated Relationship Manager
  • Certainty of repayments with a fixed rate term
 Disclosure
5.93% p.a.
5.93% p.a.
$2,975
Principal & Interest
Variable
$0
$395
70%
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 30% Min Deposit
  • Redraw
  • More details
 Disclosure
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Important Information and Comparison Rate Warning
Important Information and Comparison Rate Warning
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