Australia's Home Loan Rates Continue to Fall Amid Expectations of RBA Rate Cut

The Reserve Bank of Australia (RBA) held the cash rate at 4.35% in August 2026, and the average owner-occupier variable rate is now 5.90% p.a., according to data from Mozo.com.au.

However, some non-bank lenders are offering competitive rates as low as 5.70%, a significant gap of 21 basis points below the average rate.

This rate inversion signals that bond markets expect the RBA to begin cutting rates within the typical 1-3 year fixed-rate term.