AMP Bank increased four variable rates for owner-occupiers and investors by an average of 0.25%, while two other lenders cut five variable rates by an average of 0.2%, according to Canstar.
On the fixed side, two lenders raised 17 rates by an average of 0.24%, while three lenders cut 45 rates by an average of 0.15%.
The average variable rate for owner-occupiers paying principal and interest is 6.22%. The lowest available variable rate is 5.24% from Horizon Bank for first-home buyers (excluding intro and eco rates), while refinancers can access 5.34% through Pacific Mortgage Group.
There are currently 750 home loan rates below 5.5% on Canstar’s database.
To compare with the previous week’s results, click here.
“It was another quiet week on the mortgage front, particularly in relation to fixed rates, which was surprising considering we’re headed towards another RBA cut, potentially as soon as this afternoon,” said Canstar insights director Sally Tindall (pictured).
“While the RBA’s decision should be a close call, the speculation this time around is more focused on whether the banks will pass on the cut in full, rather than whether the central bank will make the cut at all,” Tindall said.
“We expect banks to pass on the third cash rate cut in full, whether it comes later today or further down the line. When you look at the interest rate mountain variable borrowers have scaled over the last three years, passing on a third cash rate cut to these customers should not even be a discussion within each of the banks, but rather a given.”
If banks do pass on a July cut in full, Canstar modelling shows a borrower with a $600,000 loan over 25 years could see their minimum monthly repayments fall by $90. A $750,000 loan could drop by $113, and a $1 million loan by $150.
Although recent rate cuts have offered mortgage relief, most borrowers are choosing to keep their repayments unchanged. According to Tindall, only 10% of eligible CBA customers reduced their minimum monthly repayments after the May RBA cut.
“This low uptake of customers opting to drop their repayments following a rate cut suggests many borrowers are deliberately paying that little bit extra to get ahead on their loans while they can, choosing financial discipline over short-term relief.”
Tindall also urged borrowers to understand how their lender manages repayment adjustments.
“Not every bank treats repayment adjustments the same way and it’s important for borrowers to know exactly what their bank does,” Tindall said. “If borrowers need that extra cash, or they don’t want it sitting in their mortgage as extra repayments, it's important for them to pick up the phone and make sure the cut is implemented the way they want.”
As rate cuts continue, Tindall encourages borrowers to revisit their mortgage strategy.
“Now is the time for borrowers to check in on their loan and their repayment plans,” Tindall said. “Whether it’s maximising a rate cut by switching to a lower rate or maintaining higher repayments to build a buffer, small changes can make a big difference in the long run.”
