Property · August 2026

Variable mortgage rates near 7 percent as cuts remain a distant prospect

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Probably worth doing something about

Directly material for the roughly one-third of Australian households with a variable-rate mortgage, and for renters whose landlords carry investment loans.

In a nutshell: The average variable rate on Australian home loans stands at approximately 6.92% in August 2026, following three RBA hikes earlier this year that reversed 2025 cuts. Services, rents, electricity and new-home construction costs are still rising. Major banks are aligned on a hold at the next meeting, but the path to cuts depends on trimmed mean inflation falling back into the 2–3% band — which has not yet happened.

Spin Unspin

What they’re saying

Banks are accurately describing the environment but have an interest in promoting refinancing activity; comparison site framing can create urgency that isn’t always warranted.

Refinancing advice is sound in principle, but transaction costs and break fees mean switching isn’t always the right move without independent calculation.

Finder’s rate average is derived from advertised rates across lenders; actual rates paid vary. Forward-looking bank forecasts carry commercial interest.

Current home loan interest rates in Australia | Finder

Interest Rate Forecast & Predictions For 2026 | Canstar

What experts predict for the RBA’s August 2026 interest rate decision | Aussie

Do I care?

Call your lender and ask for their best current rate for your LVR. If refused, compare offers at Finder or Canstar — switching costs can be outweighed by savings in 12–18 months.

Model your repayment at 6.5–7% before rollover so the increase isn’t a surprise. Contact your lender at least 90 days before expiry.

If you haven’t checked your rate against the market in the last 12 months, a quick call to your lender may be worth more than waiting for a cut.

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