Finder makes money from featured partners, but editorial opinions are our own.
Historical home loan interest rates in Australia
After interest rates began rising in 2022, let's take a look at how they compare historically. Here's a brief overview from 1959 until the present day.
In the graphs below you can see average home loan interest rates from 1959 up until today. Although there is data as far back as 1959 for standard variable rates, the earliest available data starts much later in time for fixed rates and discounted variable rates.
As you can see, interest rates have risen and fallen several times over the last 60+ years. They reached record highs in 1989 and 1990, but have been steadily falling since. The rate rises we have seen since 2022 have been the most consistent but are not expected to continue up to anywhere near those record highs.
Why do we look at historical interest rates?
Using historical data to try to predict the future is not a new thing. Investors use past data to try to predict share prices and historians try to use information from the past to predict future social trends.
The same can be applied for home loan interest rates – you can analyse the past to see where in the economic cycle you currently stand with your mortgage.
The economic cycle is currently composed of peaks and troughs. When there is a peak, economic activity tends to be strong along with high interest rates. Likewise, a trough indicates low and weak economic activity with low interest rates to stimulate the economy. Generally, you would want to lock in your interest rate at its lowest.
The RBA cash rate over time
The RBA: Why does the cash rate change?
Monetary policy is the RBA's responsibility. The policy decisions are made by the board with the objective of achieving inflation within 2–3%. Other objectives include:
Maintaining the financial system and Australia's currency
The goal of full employment in Australia
The safety and efficiency of the payments system
The wellbeing of the Australian economy and its people
How does the official cash rate affect my interest rate?
Banks and other lenders will adjust their interest rates in line with the RBA cash rate. However, they will add a margin to get the rate at which they lend to borrowers.
If you have a variable rate home loan your interest rate will rise when there is a cash rate rise and decrease when there is a cut. However, financial institutions are not required to pass on a rise or cut in full.
Meet our money expert Graham Cooke
Graham heads Finder's insights team and specialises in a variety of financial topics, including credit cards, loans, insurance and investing. He regularly appears on TV including ABC News, Sunrise and Today, and edits Finder's Insights column.
Graham's top home loan tips
Understand the impact: Learn how changes in the RBA cash rate can affect your mortgage interest rates.
Budget for rate changes: Be prepared for potential rate fluctuations by budgeting accordingly.
Shop around: If your current rate is too high, it might be time to look at refinancing.
Finder survey: What do people think would be the average interest rate on an owner occupier home loan with a 20% deposit?
Response
Male
Female
5-7%
61.66%
53.56%
3-5%
29.29%
34.07%
7-9%
6.36%
6.78%
1-3%
2.7%
5.59%
Source: Finder survey by Pure Profile of 1112 Australians, December 2023
See historical interest rates for the Big Four banks
You won't pay any more by taking out a home loan with us. Better still, we regularly run exclusive deals that you won't find on any other site – plus, our tables make it easy to compare loans.
We're experts
We've researched and rated dozens of home loans as part of our Finder Awards. We provide unique insights and our in-house experts regularly appear on Sunrise, 7News and SBS News.
We're independent
Unlike other comparison sites, we're not owned by a third party. That means our opinions are our own and we work with lots of home loan lenders, making it easier for you to find a good deal.
We're here to help
Since 2014, we've helped 150,000+ people find a home loan by explaining the nitty gritty details simply and clearly. We'll never ask for your number or email. We're here to help you make a decision.
Richard Whitten is a money editor at Finder, and has been covering home loans, property and personal finance for 6+ years. He has written for Yahoo Finance, Money Magazine and Homely; and has appeared on various radio shows nationwide. He holds a Certificate IV in mortgage broking and finance (RG 206), a Tier 1 Generic Knowledge certification and a Tier 2 General Advice Deposit Products (RG 146) certification.
Home loan cashback deals can help you refinance to a cheaper interest rate and get a lump sum cash payment. Compare the latest deals and check your eligibility today.
My son has had an NAB home loan for about 8 years. He originally got this loan through a broker. Despite never missing a home loan payment, his loan hasn’t reduced by much.
I saw on TV ages ago that there was some company where you could provide your repayment information and they would check the interest charged for each month. They were making the point that banks sometimes unintentionally miscalculate their figures.
My other concern is that my son has no idea of what the broker is charging. So, my first question is whether you know of any place where he could go to establish what he’s been charged for interest over the years?
My other question is whether he can approach NAB and find out what is the rate interest that’s been charged for each month of his loan and the actual interest he’s been charged for each month?
There are bank statements, but it’s not clear if the interest debited includes the broker’s fee.
I know it’s basic mathematics to work out interest for a month. However, he has as offset account whereby funds in there reduce the amount they charge interest on. So this is where it get messy.
Anyway, if you can provide some direction in this respect, it would be most appreciated.
While we’re not aware of any companies offering the services you’re looking for, if it’s only for 1 mortgage, your son can request the information directly from NAB. They can provide him with a table where he would see the principal and monthly interest payments made over the years.
In regards to the broker, mortgage brokers will typically be paid through the bank and not through borrower repayments. Your son’s repayments will not be affected by him taking out the loan with a broker. Some brokers can charge upfront fees, but this would have been a separate payment.
How likely would you be to recommend finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Important information about this website
finder.com.au is one of Australia's leading comparison websites. We are committed to our readers and stands by our editorial principles
We try to take an open and transparent approach and provide a broad-based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market.
Some product issuers may provide products or offer services through multiple brands, associated companies or different labeling arrangements. This can make it difficult for consumers to compare alternatives or identify the companies behind the products. However, we aim to provide information to enable consumers to understand these issues.
We make money by featuring products on our site. Compensation received from the providers featured on our site can influence which products we write about as well as where and how products appear on our page, but the order or placement of these products does not influence our assessment or opinions of them, nor is it an endorsement or recommendation for them.
Products marked as 'Top Pick', 'Promoted' or 'Advertisement' are prominently displayed either as a result of a commercial advertising arrangement or to highlight a particular product, provider or feature. Finder may receive remuneration from the Provider if you click on the related link, purchase or enquire about the product. Finder's decision to show a 'promoted' product is neither a recommendation that the product is appropriate for you nor an indication that the product is the best in its category. We encourage you to use the tools and information we provide to compare your options.
Where our site links to particular products or displays 'Go to site' buttons, we may receive a commission, referral fee or payment when you click on those buttons or apply for a product. You can learn more about how we make money.
When products are grouped in a table or list, the order in which they are initially sorted may be influenced by a range of factors including price, fees and discounts; commercial partnerships; product features; and brand popularity. We provide tools so you can sort and filter these lists to highlight features that matter to you.
Please read our website terms of use and privacy policy for more information about our services and our approach to privacy.
Hi there!
Great information. Thank you!
My son has had an NAB home loan for about 8 years. He originally got this loan through a broker. Despite never missing a home loan payment, his loan hasn’t reduced by much.
I saw on TV ages ago that there was some company where you could provide your repayment information and they would check the interest charged for each month. They were making the point that banks sometimes unintentionally miscalculate their figures.
My other concern is that my son has no idea of what the broker is charging. So, my first question is whether you know of any place where he could go to establish what he’s been charged for interest over the years?
My other question is whether he can approach NAB and find out what is the rate interest that’s been charged for each month of his loan and the actual interest he’s been charged for each month?
There are bank statements, but it’s not clear if the interest debited includes the broker’s fee.
I know it’s basic mathematics to work out interest for a month. However, he has as offset account whereby funds in there reduce the amount they charge interest on. So this is where it get messy.
Anyway, if you can provide some direction in this respect, it would be most appreciated.
Thanks for your anticipated help.
Cheers!
Hi Dean,
While we’re not aware of any companies offering the services you’re looking for, if it’s only for 1 mortgage, your son can request the information directly from NAB. They can provide him with a table where he would see the principal and monthly interest payments made over the years.
In regards to the broker, mortgage brokers will typically be paid through the bank and not through borrower repayments. Your son’s repayments will not be affected by him taking out the loan with a broker. Some brokers can charge upfront fees, but this would have been a separate payment.
Kind regards,
Rebecca
Looking for NAB SVR mortgage rates (owner occupied) from Feb 2008 to Sept 2013.
Hi Damien!
Thanks for the comment.
Our available statistics are the ones shown above.
You can contact NAB or RBA for your request of rates information.
Hope this clarifies.
Cheers,
Jonathan