Find out which have made moves…
In one of the quietest weeks of the year, just three lenders in the Australian mortgage market adjusted their interest rates, signalling a temporary lull in the typically active space.
According to the latest RateCity interest rates weekly wrap-up, Homestar Finance led the charge with the week’s most significant reduction, slashing its owner-occupier five-year fixed rate by 1.2 percentage points. The new rate now sits at 5.75%, positioning it as one of the more competitive options available, though still slightly above the market’s lowest five-year rate.
Despite this, the financial comparison website said the attractiveness of fixing rates for such a long term remains questionable, given the current uncertainty surrounding the cash rate.
RACQ also adjusted its offerings, reducing a range of both fixed and variable rates. The lender dropped its one-year fixed rate to 5.99% for customers with a deposit of at least 40%, bringing it below the 6% mark.
Mortgage House made more modest adjustments, with the most significant being a reduction of its two-year fixed rate to 6.04%. While this marks a reduction, it remains above the market’s lowest two-year rate of 5.64%.
Commonwealth Bank’s (CBA) variable rate stands at 6.15%, while its fixed rates range from 6.59% for one year to 6.84% for five years. Westpac’s variable rate is 6.44%, and its fixed rates vary from 6.59% for one to four years, reaching 6.69% for five years.
National Australia Bank (NAB) offers a variable rate of 6.79%, with fixed rates starting at 6.69% for one year and going up to 6.79% for five years. ANZ provides a variable rate of 6.14%, with fixed rates ranging from 6.69% for one year to 6.84% for five years.
Among the lowest advertised variable rates, Abal Bank offers a rate of 5.75%. Police Bank, Bank of Heritage Isle, and Border Bank provide a rate of 5.84%, while Pacific Mortgage Group, The Mutual Bank, and Police Credit Union advertise rates of 5.89%.
In the fixed rate category, The Capricornian offers the lowest one-year rate at 5.74%. Australian Mutual Bank has a two-year rate of 5.64%, and Community First Bank offers a three-year rate of 5.59%. Up Bank provides a four-year rate of 5.80%, while RACQ Bank offers a five-year rate of 5.59%.
“The RBA kept the cash rate on hold this week, a shock to no one, however, the messaging at its routine post-meeting press conference took many by surprise, with Governor Bullock all but ruling out a cut to the cash rate until at least February next year,” said Sally Tindall (pictured), research director at RateCity.
“The prospect of another rate hike is still on the cards, despite recent global market volatility and an economy teetering in neutral. The RBA did, however, pushed back its forecast for when the cash rate will return to the target of 2.5% by another six months, in a bid to avoid hiking a 14th time.”
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