But borrower interest remains low due to cash rate uncertainty, says RateCity
Several banks have reduced their fixed home loan rates this week, with seven lenders making adjustments, according to the latest RateCity interest rates weekly wrap-up.
Among the major banks, Westpac has made significant cuts across its fixed rate offerings, with its two- to five-year rates now at 5.89% for borrowers with a deposit of at least 30%. This marks the first time in recent years that Westpac has offered a fixed rate below 6%.
Westpac’s new rates position it as the most competitive among the big four banks, with only NAB also offering a fixed loan rate starting with a five.
Other banks, including Bank of Queensland and Great Southern Bank, have also lowered their fixed rates. Bank of Queensland now offers a three-year fixed rate at 5.74%, while Great Southern Bank’s three-year fixed rate is set at 5.99%.
For the lowest advertised rates, Abal Bank offers a 5.75% rate, with Police Bank and several others close behind at 5.84%. On the fixed rate front, The Capricornian offers a one-year fixed rate at 5.74%, and RACQ has a five-year rate at 5.59%.
Over the past week, CBA’s lowest variable rate is 6.15%, Westpac offers 6.44%, NAB’s rate stands at 6.79%, and ANZ offers 6.14%.
Westpac leads with the lowest fixed rates, offering 6.09% for a one-year fix and 5.89% for two-, three-, four-, and five-year terms.
RateCity said these rate cuts, particularly Westpac’s, indicate a strategic push to attract borrowers in a highly competitive market​.
“However, with so much uncertainty around when the cash rate will come down, these offers are not expected to draw the masses back to fixing,” said Laine Gordon (pictured above), spokesperson at RateCity.com.au.
“Latest ABS data shows just 2.6% of new loans were fixed in June this year. That’s a far cry from the peak in July 2021, when 46% of new and refinanced loans settled were fixed.”
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