“The best rate depends on your LVR and loan size. In June, competitive rates from smaller lenders are sitting between 5.8% and 6.1%.”
Following the May 2026 RBA increase to 4.35%, the major banks’ standard variable rates sit broadly in the 6.4–6.9% range. Competitive pricing from smaller and non-major lenders has diverged meaningfully from this level, creating genuine options for borrowers willing to look beyond their existing lender.
What drives the rate you’re offered
The rate you receive depends on your LVR (lower LVR typically gets a more suitable rate), your loan amount (larger loans often attract better pricing), and the specific product structure (basic variable loans typically have lower rates than full-feature products with offset accounts). These factors interact to produce the rate available to your specific profile.
Where competitive rates are sitting in June 2026
Smaller lenders, credit unions, and online lenders are running variable rates for owner-occupiers at principal and interest in the 5.9–6.2% range for borrowers with LVR under 80%. For borrowers above 80% LVR, rates are typically 0.2–0.5% higher. Major bank standard variable rates remain at 6.4–6.7% — the gap between major and non-major has widened in 2026.
Features vs rate: the offset account trade-off
A loan at 5.9% with no offset account may produce a higher effective rate for a borrower who consistently holds $50,000 in an offset than a loan at 6.1% with a full offset. The offset value should be calculated against your specific balance before concluding which product produces the lowest total cost.
The June RBA decision factor
If the RBA raises in June, variable rates will move again. Lenders typically adjust within 2–4 weeks of an RBA decision. Borrowers in the middle of a refinance application around the June meeting should confirm with their broker whether the rate offered is locked from application or subject to adjustment at settlement.
→ You may wish to speak with a licensed mortgage broker to assess your personal circumstances. This is general information only. Individual circumstances vary and scheme details change regularly. Verify current eligibility, caps, and terms with official sources before making decisions. Speak with a licensed mortgage broker for advice tailored to your situation. All loans are subject to lender approval.
Sources: RBA, Monetary Policy Decision 5 May 2026; Canstar, Interest Rate Forecast Australia, May 2026; ASIC MoneySmart, Comparison Rates 2025.
