Another week of fine-tuning interest rates – Canstar

NAB leads with surprising rate cuts this week

Another week of fine-tuning interest rates – Canstar


By Mina Martin

Canstar has reported another week of fine-tuning interest rates, with NAB leading with surprising rate cuts.

Variable and fixed rate changes

A total of five lenders raised their owner-occupier and investor variable rates by an average of 0.1%, impacting 34 different loan products. Conversely, two lenders reduced seven variable rates by the same average.

Meanwhile, two lenders cut 26 owner-occupier and investor fixed rates by an average of 0.28%, indicating a strategic realignment in some sectors of the market.

See the rate adjustments over the April-8-to-15 week in the table below.

Current rate landscape

The average variable interest rate for owner-occupiers paying principal and interest stands at 6.90% for an 80% LVR. Meanwhile, the lowest variable rate for any LVR is currently 5.74%, an introductory rate offered by Regional Australia Bank.

See table below for the lowest variable rates on offer in the market.

To compare with the previous week’s results, click here.

Insights from Canstar’s Steve Mickenbecker

Steve Mickenbecker (pictured above), Canstar’s finance expert, shared his observations on the recent trends.

“Last week was another one of fine-tuning of interest rates, with a handful of lenders edging variable rates up, and a couple cutting them,” Mickenbecker said.

“This week started with a bang as NAB slashed its variable rates, by 0.78 percentage points for residential and 1.08 percentage points for investment. The cuts are applied evenly across varying loan-to-value ratios.”

Mickenbecker expressed surprise at the magnitude of NAB’s rate cuts, particularly with no immediate expectation of a Reserve Bank cash rate cut.

“The NAB rate cut underlines just how much existing borrowers can potentially benefit by negotiating with their existing lender, let alone if they are prepared to chase the lowest rates available at other lenders,” Mickenbecker said.

These changes reflect ongoing adjustments within the lending market, influencing both current and prospective borrowers.

“Maybe we have hit a point where back book pricing is no longer higher,” Mickenbecker said, suggesting a possible new trend in how lenders are approaching rate settings amid evolving market dynamics.

Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.

Keep up with the latest news and events

Join our mailing list, it’s free!