Home Loan Interest Rate

History to October 30 2008

Following this announcement most, but not all lenders, dropped their variable interest rates by 0.80 percent. A little later in October one competing bank dropped their rates by another 0.25 percent making them the lowest variable rate.

BUT another competing lender only had to drop their standard variable home loan interest rates 0.21 percent to equal the lenders rates who had just dropped 0.25 percent.

Since then other lenders have announced rate drops of even 0.30 percent.

Australian Home Loan Interest Rate History

Home Loan Interest Rate History

The average bank variable interest home loan interest rate rate over the past 59 years in Australia is 8.87 percent. (source Reserve Bank of Australia standard variable interest rate home loans, Jan 1959 to Feb 2008)

The same standard variable home loan interest rate was above 9 percent from July 1974 through to August 1993 when the rate dropped to 8.75 percent for 1 year then did not return to below 9 percent again until November 1996.

Current 2008 interest rates don't seem that bad after all when viewed in this light!