RateCity reports no rate hikes over the past week
Several smaller lenders made modest cuts to both fixed and variable home loan rates in a relatively quiet week, with no increases reported across the market.
RACQ lowered its variable rate for owner-occupiers with at least a 40% deposit by 0.10 percentage points, bringing the new rate to 5.89%. This positions the lender as having one of the most competitive variable offers available.
Australian Mutual Bank reduced its two-year fixed rate for first-home buyers to 5.49%, matching Newcastle Permanent’s rate, which is currently the lowest advertised in this category.
According to RateCity, the lowest advertised variable rates include those offered by Abal Bank at 5.75%, Police Bank, Bank of Heritage Isle, and Border Bank (First Home Buyer Special) at 5.84%, and Pacific Mortgage Group, The Mutual Bank, and RACQ at 5.89%.
For those looking at fixed rates, the lowest offers across different terms are 5.50% for a one-year fixed term from Geelong Bank, 5.49% for a two-year fix from Australian Mutual (First Home Buyer Special), 4.99% for a three-year fixed term from SWS Bank, 5.59% for a four-year fix from HSBC, and 5.54% for a five-year option from Bank Australia.
As of this week, CBA’s lowest variable rate stands at 6.15%, while its fixed rates range from 5.89% for a three-year term to 6.69% for a five-year term. Westpac’s lowest variable rate is 6.44%, with its one-year fixed rate starting at 6.09% and three- to five-year terms all at 5.89%.
NAB offers a variable rate of 6.79%, with fixed rates beginning at 6.69% for one year and 5.99% for three years. ANZ, meanwhile, advertises a variable rate of 6.14% and fixed rates ranging from 6.54% for two years to 6.84% for five years.
“On Monday, NAB’s economic team revised its cash rate forecast, bringing forward the timing of the first rate cut from May to February 2025,” said Laine Gordon (pictured above), money editor at RateCity.com.au.
“While inflation is moving in the right direction, the RBA board has made it clear that much of the decline in prices reflected the government’s temporary cost-of-living measures, and doesn’t expect it to return ‘sustainably to target until 2026’ – effectively squashing any hopes of a cash rate cut in the near term. It has been 10 months since the RBA last changed the cash rate, so it’s time for a reality check.
“The average owner-occupier on a variable rate is now paying 6.36%, according to the latest RBA lending rates. That’s well above some of the lowest variable rates on RateCity’s database, starting at 5.75%. Fixed rates remain even more competitive from 4.99%, if you’re willing to lock in your rate for three years – and that’s a very big ‘if.’”
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