At its August monetary policy meeting, the Reserve Bank of Australia (RBA) decided not to raise interest rates, leaving the official cash rate unchanged at 4.35%.
This means that mortgage holders already facing significant repayment pressure have, for the time being, avoided another interest rate increase.
However, this should not be taken to mean that Australia’s rate-hiking cycle has officially ended.
RBA Governor Michele Bullock made it clear that the Board did not discuss cutting interest rates at this meeting. Instead, it considered whether further rate increases may be needed in the future.
Among the Big Four banks, NAB was the first to reduce selected fixed home loan rates.
The chart below shows movements in the cash rate since the RBA began raising interest rates in May 2022.
The following tables compare the latest home loan interest rates currently offered by Australia’s Big Four banks.
Note: The information below is current as at 16 August 2026. The discounted variable rates and fixed rates shown below—except those offered by ANZ and NAB—are based on the discounted rates available through the relevant bank’s package. The comparison assumes a loan amount of $500,000 and a loan-to-value ratio (LVR) of 80%.
Variable Rate Comparison
Commentary: The final variable rate offered by a Big Four bank may vary between borrowers. Customers generally need to go through the bank’s pricing process to negotiate a larger discount and secure a lower interest rate. The final discounted rate usually depends on factors such as the loan amount, LVR and even the mortgage broker’s negotiating ability.
Explanation: Basic variable rates currently offer little advantage over discounted standard variable rates with an offset account. Although basic variable loans generally have no annual or monthly fees, they do not provide an offset account. They may only be worth considering for loan balances below $200,000.
Fixed Rate Comparison
A fixed home loan rate remains unchanged for an agreed period, regardless of whether the bank increases or reduces its interest rates. Fixed terms of one to four years are currently the most popular options. Please refer to the comparison table below for details.
Commentary:
Over the past month, NAB has reduced its one-year and two-year fixed rates for owner-occupied home loans, as well as its two-year fixed rate for investment loans. Overall, ANZ currently offers slightly lower fixed rates.
The conflict in the Middle East remains highly uncertain, oil prices have rebounded, and the market is concerned that inflation in Australia could rise again. As a result, the RBA may still increase interest rates further.
Many borrowers are therefore asking themselves whether they should choose the certainty of a fixed rate or retain the flexibility of a variable rate.
Alternatively, would a split-loan strategy—part fixed and part variable—be more suitable?
If you are also considering your interest rate options, please contact us to discuss a home loan interest rate strategy tailored to your individual circumstances.