Variable rates show more movement
The fixed rate mortgage market saw minimal movement this week, according to the latest RateCity interest rates weekly wrap-up.
Credit Union SA was the only lender to adjust its rates, lowering its one-year rate while increasing its two- and three-year rates.
The RateCity.com.au report also showed some activity in variable rates, with both cuts and hikes recorded. The most notable change was Auswide Bank’s reduction of its lowest variable rate to 5.99% for owner occupiers with a loan-to-value ratio (LVR) of 70% or less.
Among the big four banks, the Commonwealth Bank of Australia (CBA) has set its lowest advertised variable rate at 6.15%, while its one-year fixed rate is 6.59%. Westpac’s lowest advertised variable rate is 6.44%, with a two-year fixed rate at 6.49%.
The National Australia Bank (NAB) offers its lowest advertised variable rate at 6.14% and a one-year fixed rate at 6.69%. ANZ’s lowest variable rate is 6.14% for refinancing only, with its one-year fixed rate set at 6.69%.
Outside of the big four, Queensland Country Bank now advertises the lowest one-year fixed rate at 5.74%, while Australian Mutual offers the lowest two- and three-year fixed rates at 5.53% and 5.48%, respectively. Peoples Choice has the lowest four-year fixed rate at 5.79%, and RACQ advertises the lowest five-year fixed rate at 5.59%.
In terms of variable rates, Abal Bank advertises a rate of 5.75%, G&C Mutual Bank at 5.80%, and Police Bank, Bank of Heritage Isle, and Border Bank all at 5.84%. Pacific Mortgage Group and The Mutual Bank both offer a rate of 5.89%.
“Auswide is now officially part of the under-6% club, which boasts a list of over 30 lenders currently offering at least one variable rate under this mark, excluding introductory rate and green loans,” said Sally Tindall (pictured above), research director at RateCity.com.au.
“How long these rates will remain under 6% rests largely on the RBA. The ABS monthly CPI indicator has clocked in at 4% in the month of May, further fuelling fears of a 14th RBA rate hike and pushing out the prospect of rate cuts until well into 2025 at this stage.”
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