Today's interest rates vary widely by loan type, but in Australia, the Reserve Bank's cash rate target is 3.60% (as of late 2025). Major bank home loan variable rates are generally in the 5.4% to 6.5% range, depending on LVR and package, while fixed rates can be around 5.7% to 6.0% for shorter terms. For US mortgages, 20-year fixed rates are around 5.88% as of early January 2026.
As of late 2025, Australia's official interest rate, the RBA Cash Rate, stands at 3.60%, a level maintained since its last decision in December 2025, impacting home loans, savings, and other financial products, with current major bank variable home loan rates generally ranging from the low 5% to over 8% depending on loan type and LVR, according to RBA, ANZ, and other bank websites.
Monthly repayments on a $600k mortgage in Australia vary significantly with interest rates and loan terms, but expect roughly $3,300 - $4,000+ for a 30-year loan and $5,000 - $6,600+ for a 15-year loan, depending on current rates (e.g., 5.5% to 7%+). For example, a 30-year loan at 5.44% could be around $3,384/month, while a 15-year loan at 6% could be $5,063/month.
As far as personal loans go, 7-8% is generally a pretty great rate and very close to the lowest one can get.
The sharp drop in mortgage rates over the latter half of 2025 owed in part to data showing a slowdown in hiring, which heightened expectations that the Fed would slash interest rates in an effort to boost the ailing labor market.
Using this free income calculator, the approximate income you need to buy a $500,000 home, assuming you need a $400,000 loan, is $77,000 gross per year, excluding superannuation.
A budget of £600 per month for repayments could get you approximately £134,000. A budget of £650 per month for repayments could get you approximately £145,000. A budget of £700 per month for repayments could get you approximately £156,000.
Ways to pay off your home loan faster
Will Mortgage Rates Ever Go Down to 3% Again? While it's possible that interest rates could return to 3% territory in the future, it's highly unlikely that it'll happen anytime soon. In fact, some experts say it won't happen again without another major economic shock like the one caused by the COVID-19 pandemic.
This indicates that 4.75% is a good rate for borrowers seeking a mortgage. Factors like credit score, down payment, loan type, and loan amount affect the interest rate a borrower can get. Comparing offers from various lenders can help borrowers find the best rate for their financial situation.
The lowest home loan interest rates vary, but currently, lenders like G&C Mutual Bank (fixed rate at 4.85% p.a.) and online lenders like loans.com.au, Macquarie Bank, and Horizon Bank (variable around 5.00-5.39% p.a.) offer very competitive rates, often for specific owner-occupier, principal & interest loans with lower Loan-to-Value Ratios (LVRs) or for first-home buyers. Major banks like Westpac and CommBank also have competitive offerings, though generally slightly higher.
Excellent Credit (750+): 3% to 4% interest rate. Good Credit (700-749): 4% to 5% interest rate. Fair Credit (650-699): 6% to 8% interest rate. Poor Credit (600-649):9% to 12% interest rate.
How much is a $400,000 mortgage over 30 years? For a $400,000 mortgage over 30 years, your monthly payments will be approximately $1,686 based on an APR of 3%.
You can negotiate mortgage rates, especially if you have a strong credit profile and shop around. Your credit score, income, debt-to-income ratio and down payment amount all affect how much leverage you have when negotiating with a lender.
How to Pay Off a 30-Year Mortgage Faster
Minimum deposit to buy a $600,000 property (no LMI)
For a house priced at $600,000, this means you would need a minimum deposit of $120,000. This 20% deposit reduces the lender's risk and eliminates the need for LMI, which is an insurance policy that protects the lender if the borrower defaults on the loan.
To comfortably afford a 400k mortgage, you'll likely need an annual income between $100,000 to $125,000, depending on your specific financial situation and the terms of your mortgage.
On a $100k salary in Australia, you might borrow between $330,000 and $600,000, but it highly depends on lender policies, interest rates, existing debts (car, credit cards), living expenses, and deposit size, with many lenders using serviceability buffers, suggesting figures closer to the lower end, while others might offer more if you have minimal expenses and debt. Use an online borrowing calculator from banks like NAB, CommBank, or ING for a personalized estimate.
To buy a $650,000 house in Australia, you generally need a gross annual household income between $100,000 to $140,000, with figures varying significantly by location and lender criteria, requiring a strong deposit (around $130,000 for 20%) and managing loan repayments to not exceed 30% of your income to avoid mortgage stress, often necessitating a joint income or substantial savings, as highlighted by financial experts and data from sources like Fundd, Finder, and Real Estate.
The Indian government continues to strengthen its support for affordable housing in 2025, making it an opportune year for homebuyers. Key programmes like Pradhan Mantri Awas Yojana (PMAY) remain active, alongside state-level incentives that reduce the cost of purchasing a home.
Is it possible to get a 3% interest rate on a mortgage? It's unlikely you'll see a 3% mortgage rate anytime soon. According to Freddie Mac, the average interest rate on a 30-year fixed-rate mortgage is well over 6%. Mortgage rates hit historic lows in 2021 due to the Federal Reserve's response to the COVID-19 pandemic.
The monthly principal and interest payment for a $300,000 home will vary based on some key details. Assuming a 20% down payment, a 30-year mortgage with a 6% interest rate would result in a monthly principal and interest payment of approximately $1,440.