The benchmark interest rate in Australia was last recorded at 3.60 percent. This dataset provides - Australia Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Key information about Australia Long Term Interest Rate

• Australia Government Bond Yield: Australian Government: 10 Years was reported at 4.42 % pa in Feb 2025, compared with 4.48 % pa in the previous month.
• Australia Long Term Interest Rate data is updated monthly, available from Jul 1969 to Feb 2025.
• The data reached an all-time high of 16.50 % pa in Aug 1982 and a record low of 0.80 % pa in Oct 2020.
• Long Term Interest Rate is reported by reported by Reserve Bank of Australia.

• In the latest reports, Australia Short Term Interest Rate: Month End: Bank Acceptance Bills Rates: 90 days was reported at 4.12 % pa in Feb 2025.
• The cash rate (Policy Rate: Month End: Cash Target Rate) was set at 4.10 % pa in Feb 2025.
• Australia Exchange Rate against USD averaged 1.49 (USD/AUD) in Jun 2023.

As of the end of March 2025, the average mortgage interest rate for Australian owner-occupier borrowers was around *** percent. In comparison, the average investor interest rate was approximately *** percent. These rates refer to outstanding housing loans from banks and registered financial corporations. New loans financed in that month had even similar interest rates, at *** percent for owner-occupiers and *** percent for investors, respectively.

This report analyses the standard variable home loan interest rate from registered banks. The data is collected monthly and converted into an average rate quoted by large bank lenders. Actual interest rates for loans can often vary, as they are subject to individual factors like loan size, the option of split-interest rates and whether there are redraw facilities or offset accounts. The data is sourced from the Reserve Bank of Australia (RBA) and presented as the average interest rate over each financial year.

The Reserve Bank of Australia's (RBA) cash rate target in-part determines interest rates on financial products.

In June 2025, global inflation rates and central bank interest rates showed significant variation across major economies. Most economies initiated interest rate cuts from mid-2024 due to declining inflationary pressures. The U.S., UK, and EU central banks followed a consistent pattern of regular rate reductions throughout late 2024. In the first half of 2025, Russia maintained the highest interest rate at 20 percent, while Japan retained the lowest at 0.5 percent. Varied inflation rates across major economies The inflation landscape varies considerably among major economies. China had the lowest inflation rate at 0.1 percent in June 2025. In contrast, Russia maintained a high inflation rate of 9.4 percent. These figures align with broader trends observed in early 2025, where China had the lowest inflation rate among major developed and emerging economies, while Russia's rate remained the highest. Central bank responses and economic indicators Central banks globally implemented aggressive rate hikes throughout 2022-23 to combat inflation. The European Central Bank exemplified this trend, raising rates from 0 percent in January 2022 to 4.5 percent by September 2023. A coordinated shift among major central banks began in mid-2024, with the ECB, Bank of England, and Federal Reserve initiating rate cuts, with forecasts suggesting further cuts through 2025 and 2026.

Mortgage lenders are dealing with the RBA's shift to a tighter monetary policy, as it fights heavy inflation. Since May 2022, the RBA has raised the benchmark cash rate, which flows to interest rates on home loans. This represents a complete reversal of the prevailing approach to monetary policy taken in recent years. Over the course of the pandemic, subdued interest rates, in conjunction with government incentives and relaxed interest rate buffers, encouraged strong mortgage uptake. With the RBA's policy reversal, authorised deposit-taking institutions will need to balance their interest rate spreads to ensure steady profit. A stronger cash rate means more interest income from existing home loans, but also steeper funding costs. Moreover, increasing loan rates mean that prospective homeowners are being cut out of the market, which will slow demand for new home loans. Overall, industry revenue is expected to rise at an annualised 0.4% over the past five years, including an estimated 2.2% jump in 2023-24, to reach $103.4 billion. APRA's regulatory controls were updated in January 2023, with new capital adequacy ratios coming into effect. The major banks have had to tighten up their capital buffers to protect against financial instability. Although the ‘big four’ banks control most home loans, other lenders have emerged to foster competition for new loanees. Technological advances have made online-only mortgage lending viable. However, lenders that don't take deposits are more reliant on wholesale funding markets, which will be stretched under a higher cash rate. Looking ahead, technology spending isn't slowing down, as consumers continue to expect secure and user-friendly online financial services. This investment is even more pressing, given the ongoing threat of cyber-attacks. Industry revenue is projected to inch upwards at an annualised 0.8% over the five years through 2028-29, to $107.7 billion.

Mortgage Rate in Australia decreased to 5.76 percent in June from 5.84 percent in May of 2025. This dataset includes a chart with historical data for Australia Mortgage Rate.

A collection of key statistics about home loans in Australia, including interest rates, loan sizes, refinancing trends, and borrowing activity based on the latest data from the ABS and RBA.

The benchmark interest rate in New Zealand was last recorded at 3.25 percent. This dataset provides - New Zealand Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

The Finance sector's operating environment was previously characterised by record-low interest rates. Nonetheless, high inflation prompted the Reserve Bank of Australia (RBA) to hike the cash rate from May 2022 onwards. This shift allowed financial institutions to impose higher loan charges, propelling their revenue. Banks raised interest rates quicker than funding costs in the first half of 2022-23, boosting net interest margins. However, sophisticated competition and digital disruption have reshaped the sector and nibbled at the Big Four's dominance, weighing on ADIs' performance. In the first half of 2025, the fierce competition has forced ADIs to trim lending rates even ahead of RBA moves to protect their slice of the mortgage market. Higher cash rates initially widened net interest margins, but the expiry of cheap TFF funding and a fierce mortgage war are now compressing spreads, weighing on ADIs' profitability. Although ANZ's 2024 Suncorp Bank takeover highlights some consolidation, the real contest is unfolding in tech. Larger financial institutions are combatting intensified competition from neobanks and fintechs by upscaling their technology investments, strengthening their strategic partnerships with cloud providers and technology consulting firms and augmenting their digital offerings. Notable examples include the launch of ANZ Plus by ANZ and Commonwealth Bank's Unloan. Meanwhile, investor demand for rental properties, elevated residential housing prices and sizable state-infrastructure pipelines have continued to underpin loan growth, offsetting the drag from weaker mortgage affordability and volatile business sentiment. Overall, subdivision revenue is expected to rise at an annualised 8.3% over the five years through 2024-25, to $524.6 billion. This growth trajectory includes an estimated 4.8% decline in 2024-25 driven by rate cuts in 2025, which will weigh on income from interest-bearing assets. The Big Four banks will double down on technology investments and partnerships to counter threats from fintech startups and neobanks. As cybersecurity risks and APRA regulations evolve, financial institutions will gear up to strengthen their focus on shielding sensitive customer data and preserving trust, lifting compliance and operational costs. In the face of fierce competition, evolving regulations and shifting customer preferences, consolidation through M&As is poised to be a viable trend for survival and growth, especially among smaller financial institutions like credit unions. While rate cuts will challenge profitability within the sector, expansionary economic policies are poised to stimulate business and mortgage lending activity, presenting opportunities for strategic growth in a dynamic market. These trends are why Finance subdivision revenue is forecast to rise by an annualised 1.1% over the five years through the end of 2029-30, to $554.9 billion

Australia Lending Rate: Housing Loans: Banks: Variable: Investor: Standard data was reported at 5.098 % pa in Jul 2020. This stayed constant from the previous number of 5.098 % pa for Jun 2020. Australia Lending Rate: Housing Loans: Banks: Variable: Investor: Standard data is updated monthly, averaging 5.794 % pa from Aug 2015 (Median) to Jul 2020, with 60 observations. The data reached an all-time high of 5.944 % pa in May 2019 and a record low of 5.098 % pa in Jul 2020. Australia Lending Rate: Housing Loans: Banks: Variable: Investor: Standard data remains active status in CEIC and is reported by Reserve Bank of Australia. The data is categorized under Global Database’s Australia – Table AU.M003: Lending Rate.

Australia Lending Rate: Housing Loans: Banks: 3 Year Fixed data was reported at 6.030 % pa in Mar 2025. This stayed constant from the previous number of 6.030 % pa for Feb 2025. Australia Lending Rate: Housing Loans: Banks: 3 Year Fixed data is updated monthly, averaging 6.690 % pa from Sep 1990 (Median) to Mar 2025, with 415 observations. The data reached an all-time high of 15.500 % pa in Sep 1990 and a record low of 2.140 % pa in Apr 2021. Australia Lending Rate: Housing Loans: Banks: 3 Year Fixed data remains active status in CEIC and is reported by Reserve Bank of Australia. The data is categorized under Global Database’s Australia – Table AU.M004: Lending Rate.

The Foreign Banks industry includes domestic subsidiaries of foreign banks and branches of foreign banks, which have grown over the past few years as soaring interest rates contributed to a sharp revenue rise. The Reserve Bank of Australia (RBA) maintained a relatively low cash rate over the past decade – especially in response to the pandemic – to stimulate economic activity. The low cash rate environment hampered foreign banks' revenue in the three years through 2021-22. In May 2022, this all changed when inflation rose quickly, leading to the fastest and largest hike cycle on record. These trends ensured a revenue explosion in the two years through 2023-24, especially after a decade of cheap money drove extensive private and corporate borrowing in Australia. Overall, industry revenue is expected to grow at an annualised 11.8% over the five years through 2024-25, to $45.6 billion. This includes an anticipated decline of 8.8% in 2024-25 as the RBA cut rates. Foreign banks are typically less exposed than domestic banks to the residential lending market and depend more on commercial lending because of the high number of foreign bank branches, with the noted exception of HSBC Bank, which has substantially grown its mortgage books over the past few years. Meanwhile, foreign bank branches increasingly lent to corporate clients despite a highly competitive market. These long-term trends allowed industry profit margins to heighten. Yet, as interest rates surged in 2022, so did foreign banks’ funding expenses. This weighed on profit’s proportion of revenue despite net earnings growth. Australian foreign banks’ outlook is more mixed over the coming years as interest rates gradually drop. Foreign banks are set to shift their focus towards ESG offerings like responsible lending, to satisfy consumer demand for green loans. In response to the fierce competition from lenders, including non-banks and fintech firms, foreign banks are set to splurge on technology to remain relevant. Funding costs will start easing as interest rates decline, causing profit margins to rebound. Overall, revenue is forecast to fall at an annualised 3.8% over the five years through 2029-30, to $37.8 billion.

Mortgage credit interest rate, percent in Australie, mars, 2025 Pour cet indicateur, Reserve Bank of Australia fournit des données pour la Australie de janvier 2000 à mars 2025. La valeur moyenne pour Australie pendant cette période était de 6.21 pour cent avec un minimum de 3.64 pour cent en août 2021 et un maximum de 9.32 pour cent en juillet 2008. | TheGlobalEconomy.com

Banks are grappling with a transition from years of loose monetary policy to tighter financial conditions. Soaring inflation prompted an RBA pivot in the face of surging energy, housing and food prices. The RBA hiked the cash rate multiple times from May 2022 to November 2023. Prior to this, banks cashed in on high residential housing prices, with low interest rates and government schemes encouraging strong mortgage uptake over the course of the pandemic. APRA also eased the interest rate buffer in 2019, before raising it in 2021. Interest hikes have pushed up banks' incomes over the past few years. Meanwhile, banks' interest deposit expenses and funding costs have also risen while elevated interest rates have dampened industry profit margins over the past few years. Overall, industry revenue is expected to expand at an annualised 9.3% over the five years through 2024-25, to $259.2 billion. This includes an anticipated slump of 8.3% in 2024-25, as inflationary pressure shows signs of easing, the cash rate easing, weighing on interest income. As banks passed on cash rate rises through higher interest rates, the RBA's policy approach has had a cascading effect on the economy. There’s a lag before these hit customers, with some fixed-rate mortgages gradually rolling over through 2023 and 2024. Banks are securing more interest income from existing loans but must manage inflated borrowing costs and bigger payouts on deposit accounts. Residential housing prices are set to stabilise, while heavy mortgage payments will price out some potential homeowners. Banks will be monitoring consumer spending amid inflationary pressures and spiralling borrowing costs. APRA has strengthened rules for managing interest rate risks, effective from October 2025. The updated Prudential Standard APS 117 requires major financial institutions to implement robust frameworks to manage these risks effectively. The big four will need to keep up with rapid technological change, managing cyber security as consumers embrace online financial services. Competition isn't easing up as smaller technology-focused firms disrupt the finance sector and foreign banks tap into the Australian market. Revenue is projected to climb at an annualised 0.3% over the next five years, to total $262.6 billion in 2029-30.

Australia Lending Rate: Housing Loans: Mortgage Managers: Variable: Basic data was reported at 3.048 % pa in Feb 2020. This records a decrease from the previous number of 3.072 % pa for Jan 2020. Australia Lending Rate: Housing Loans: Mortgage Managers: Variable: Basic data is updated monthly, averaging 5.703 % pa from Sep 1998 (Median) to Feb 2020, with 258 observations. The data reached an all-time high of 8.617 % pa in Aug 2008 and a record low of 3.048 % pa in Feb 2020. Australia Lending Rate: Housing Loans: Mortgage Managers: Variable: Basic data remains active status in CEIC and is reported by Reserve Bank of Australia. The data is categorized under Global Database’s Australia – Table AU.M004: Lending Rate.

Australia Lending Rate: Housing Loans: Banks: Variable: Standard data was reported at 8.520 % pa in Mar 2025. This records a decrease from the previous number of 8.620 % pa for Feb 2025. Australia Lending Rate: Housing Loans: Banks: Variable: Standard data is updated monthly, averaging 7.250 % pa from Jan 1959 (Median) to Mar 2025, with 795 observations. The data reached an all-time high of 17.000 % pa in Mar 1990 and a record low of 4.520 % pa in Apr 2022. Australia Lending Rate: Housing Loans: Banks: Variable: Standard data remains active status in CEIC and is reported by Reserve Bank of Australia. The data is categorized under Global Database’s Australia – Table AU.M004: Lending Rate. [COVID-19-IMPACT]

Australia Lending Rate: Housing Loans: Banks: Variable: Discounted data was reported at 6.820 % pa in Mar 2025. This records a decrease from the previous number of 6.880 % pa for Feb 2025. Australia Lending Rate: Housing Loans: Banks: Variable: Discounted data is updated monthly, averaging 5.670 % pa from Jun 2004 (Median) to Mar 2025, with 250 observations. The data reached an all-time high of 8.960 % pa in Aug 2008 and a record low of 3.450 % pa in Apr 2022. Australia Lending Rate: Housing Loans: Banks: Variable: Discounted data remains active status in CEIC and is reported by Reserve Bank of Australia. The data is categorized under Global Database’s Australia – Table AU.M004: Lending Rate.

Mortgage brokers have benefited from the relatively resilient Australian housing market in recent years. Factors like the previously record-low interest rates, government stimulus and surging residential housing prices have improved loan values and loan volumes for brokers. Stronger commissions for brokers have grown profit margins and raised wages in the industry. Notably, the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services industries levied significant scrutiny on the conduct of mortgage brokers. As a result of the Royal Commission, numerous lenders changed their remuneration models for brokers, and the government even introduced legislation intended to reform the core principles of the industry. These reforms, including a statutory duty to act in the best interest of the borrower, have had varying effects on brokers. Overall, the Mortgage Brokers industry is expected to grow at an annualised 10.6% over the five years through 2024-25, to total $6.2 billion. Subsequent rate hikes introduced by the RBA in response to inflationary pressures have had relatively marginal effects on residential housing prices despite rising residential housing loan rates and the growing unaffordability of mortgages in general. Nonetheless, an expected easing of residential loan rates is set to push up mortgage broker revenue by an estimated 12.9% in 2024-25. Larger brokers have focused on improving their network sizes to improve the scale of their operations. Firms have also reckoned with threats from disruptive fintech operators. Interest rates are set to continue tumbling over the coming years following the RBA's cash rate drop in February 2025. However, the potential for future rate hikes pushing the housing market to a breaking point could have disastrous effects on mortgage brokers. Continued government stimulus in the form of the proposed Help to Buy Scheme and the Housing Australia Future Fund is set to support housing affordability and supply without artificially lowering housing prices and thereby indirectly benefiting broker operations. Overall, industry revenue is forecast to expand at an annualised 3.5% through 2029-30 to total $7.3 billion.