Best Mortgage Rates in Australia 2025 – Compare Lenders & Deals
Australia’s housing market in 2025 continues to attract both local buyers and foreign investors. Mortgage rates have become one of the most important factors influencing affordability. This guide provides a detailed comparison of the best mortgage rates in Australia 2025, covering major banks, fixed and variable loans, as well as strategies to qualify for the lowest rates.
Australian Housing Market 2025 Overview
The Australian housing market in 2025 has shown steady demand, especially in Sydney, Melbourne, and Brisbane. While property prices remain high, falling interest rates compared to previous years are giving buyers more flexibility. Government regulations on foreign ownership still apply, but international buyers continue to see Australia as a safe long-term investment.
Current Mortgage Rate Trends
As of mid-2025, the average variable mortgage rate across major lenders is between 5.8% and 6.2%. Fixed mortgage rates, depending on the loan term, are averaging between 5.5% and 6.0%. Many banks are offering special discounted rates for first-home buyers or customers who bring in multiple financial products.
Major Banks and Their Mortgage Offers
Commonwealth Bank of Australia (CBA)
- Variable Rate: approx. 5.85%
- Fixed 3-Year Rate: approx. 5.60%
- Best for: First-time buyers seeking flexible packages
Westpac
- Variable Rate: approx. 6.05%
- Fixed 2-Year Rate: approx. 5.55%
- Best for: Customers with strong credit histories
National Australia Bank (NAB)
- Variable Rate: approx. 6.00%
- Fixed 4-Year Rate: approx. 5.75%
- Best for: Investors and high-net-worth individuals
ANZ
- Variable Rate: approx. 5.90%
- Fixed 5-Year Rate: approx. 5.80%
- Best for: Customers looking for long-term stability
Fixed vs Variable Loans – Which is Better in 2025?
Choosing between fixed and variable loans depends on market expectations and personal risk tolerance:
- Fixed Loans: Provide certainty in repayments, best if you expect rates to rise further.
- Variable Loans: Offer flexibility and potential savings if rates continue to decrease.
Qualifying for the Lowest Mortgage Rates
To access the best mortgage rates in Australia 2025, applicants should:
- Maintain a strong credit score (above 700)
- Provide a higher deposit (20% or more)
- Show stable employment history
- Consider loan packages that bundle offset accounts or credit cards
Tips for Foreign Buyers
Foreign buyers face additional requirements, such as FIRB (Foreign Investment Review Board) approval. In 2025, regulations have slightly tightened, but investors who purchase newly built properties still have better chances of approval. It’s recommended to work with an Australian mortgage broker who specializes in overseas clients.
How to Lower Your Interest Rate in 2025
- Refinance with a competitor offering cashback deals
- Use offset accounts to reduce interest burden
- Negotiate directly with your current bank
- Take advantage of government-backed first-home buyer incentives
