Fixed home loan rates have moved above variable rates for new borrowers, according to the Reserve Bank's latest housing lending rate data. In August 2026, new owner-occupier loans fixed for three years or less averaged about 6.3 per cent, while new variable loans averaged about 6.2 per cent. That gap opened in July, and in the RBA's monthly series it is the first time short fixed rates have sat above variable rates since early 2023.
Quick answer: New fixed home loan rates of up to three years averaged about 6.3 per cent in August 2026, above the 6.2 per cent average for new variable loans. Longer fixed terms averaged about 6.9 per cent. These figures were collected before the September cash rate rise, so they do not yet include that increase.
This article explains what the RBA figures show, why the order of fixed and variable rates matters, and what it can mean for your budget and borrowing power if you are also planning a car or personal loan. It is general information, not advice about which loan suits you.
What the RBA's August 2026 lending rate data shows
The figures come from the RBA's housing lending rates table (statistical table F6), which is compiled from data lenders report to APRA. The August 2026 data was published on 8 October 2026. All figures below are averages of rates actually charged, rounded to one decimal place, not advertised rates.
For new owner-occupier loans funded in August 2026:
- Variable rate loans averaged about 6.2 per cent, up from about 5.5 per cent in August 2025.
- Loans fixed for three years or less averaged about 6.3 per cent, up from about 5.3 per cent a year earlier.
- Loans fixed for more than three years averaged about 6.9 per cent, up from about 6.1 per cent.
- Loans at a loan-to-valuation ratio of 81 per cent or more averaged about 6.3 per cent, against about 6.2 per cent below that level.
For new investor loans, variable rates averaged about 6.4 per cent and three-year-or-less fixed rates about 6.5 per cent. Investor loans fixed for more than three years averaged about 7.6 per cent, up from about 7.0 per cent in July.
Over the year, short fixed rates on new owner-occupier loans rose by about a full percentage point, while new variable rates rose by about 0.7 of a point. The cash rate rose by 0.75 of a point over that period, from 3.60 per cent to 4.35 per cent, before the Board lifted it again to 4.60 per cent from 30 September 2026.
Why fixed home loan rates rose faster than variable rates
Variable rates tend to follow the cash rate as it moves. Fixed rates are priced on what lenders expect funding to cost over the fixed term, so they respond to expectations about where rates are heading as well as where they are now.
The minutes of the RBA Board's 28 and 29 September meeting give some of that context. Members noted that Australian government bond yields had "risen materially", and that market expectations for the cash rate had also risen since the previous meeting. At the time of the meeting, market pricing implied a further increase of around 15 basis points by the end of 2026 and another 30 basis points in the first half of 2027. Those are market expectations, not RBA forecasts, and they can change quickly. The Board said it would do what it considers necessary, "including increasing the cash rate target further if required".
When fixed rates sit above variable rates, it is consistent with lenders and markets pricing in the chance of further rises. It does not tell you that rates will rise, and the order has flipped before. Our explainer on fixed or variable rates covers how each type behaves.
What the gap means for borrowers coming off a fixed rate
The RBA table also shows a different picture for existing loans. Owner-occupier loans already on a fixed rate with three years or less left averaged about 5.6 per cent in August 2026. That is well below the rates being written for new fixed and variable loans.
If your fixed term ends soon, the rate you roll onto could be noticeably higher. As a simple illustration, on a $500,000 loan over 30 years with principal and interest repayments:
- At 5.6 per cent, the monthly repayment is about $2,870.
- At 6.2 per cent, it is about $3,062.
- At 6.3 per cent, it is about $3,095.
- At 6.9 per cent, it is about $3,293.
Moving from 5.6 to 6.3 per cent adds about $225 a month in that example. These figures are illustrations of the arithmetic only, before fees and before any September rate rise flowed through to your loan. Your own repayment depends on your balance, term and lender.
How fixed home loan rates feed into car loan borrowing power
When you apply for a car loan or personal loan, lenders look at your existing commitments, including your home loan repayment, to judge whether you can afford a new loan. This is the serviceability assessment. A higher mortgage repayment leaves less room in that calculation, which can reduce the amount a lender is willing to offer.
Lenders also tend to test whether you could still meet repayments if rates rose, rather than relying only on today's rate. That means a borrower about to roll off a low fixed rate may find the lender assesses the mortgage at a level closer to current market rates. Our guide on home loan rate rises and car loan borrowing power walks through that effect, and the explainer on what the cash rate means versus what you actually pay shows how averages compare with individual loans.
If you want to know where you stand before you shop for a vehicle, car loan pre-approval can show how a lender views your budget, though it is not a final approval.
Car loans and personal loans are priced differently
Car loans are not priced off the same tables as home loans. Many car and personal loans in Australia are written at a fixed rate for the whole term, so the repayment you sign up for usually stays the same even if the cash rate moves. The rate you are offered depends on the lender, your credit history, the vehicle and the loan term.
That is why comparing the comparison rate rather than only the headline rate matters. As an illustration only, a $40,000 car loan over five years costs about $830 a month at 9 per cent and about $850 a month at 10 per cent, before fees. You can compare published rates and features on our lender profiles, including banks such as ING and Great Southern Bank, then explore car loans or personal loans when you are ready.
Should you use your mortgage to pay for a car?
Some homeowners consider drawing on a home loan through redraw or a top-up to buy a car, because the home loan rate is lower than many car loan rates. With new home loan rates averaging above 6 per cent, the gap is smaller than it was, and spreading a car's cost over a long mortgage term can increase the total interest paid. Our guide to using your mortgage to buy a car sets out the trade-offs.
Steps worth taking now
- Check your fixed rate expiry date. Know when it ends and what rate your lender says you will move to.
- Compare your rate with the RBA averages. If you are paying well above the averages for new loans, ask your lender or look at refinancing options.
- Budget for the September rise. The August data predates the move to 4.60 per cent. Our article on the home loan rate rise from 9 October covers how lenders passed it on.
- Leave room in your budget. If you are planning a car loan, choose a repayment you could manage even if your mortgage cost rises.
- Watch the next RBA meeting. The Board next meets on 2 and 3 November 2026. Our coverage of the September RBA minutes explains what members were weighing.
The bottom line
The RBA's August data shows fixed home loan rates for new borrowers now sit slightly above variable rates, and well above the rates many existing fixed loans are on. For households, that mostly matters at refinance or fixed rate expiry, and in how much room a lender sees in your budget for a new car or personal loan. Knowing your own numbers, rather than relying on averages, is the most useful step.
