Lender activity nudged higher over the past week, with a mix of rate hikes and targeted cuts across the home loan market, Canstar’s latest weekly rate wrap-up shows.
ME Bank increased one investor variable rate by 0.05%, while eight lenders lifted a combined 149 owner-occupier and investor fixed rates by an average of 0.17%. At the same time, three lenders reduced 52 fixed rates by an average of 0.29%, signalling that competitive pricing remains in play for select borrower segments.
The average variable rate for owner-occupiers paying principal and interest now sits at 5.92%.
For first-home buyers, the lowest variable rate on the market remains 4.99% from G&C Mutual Bank, Horizon Bank, and Unity Bank. Refinancers can also access a 4.99% rate through Hume Bank’s locals-only two-year introductory offer. Excluding promo rates, the lowest ongoing variable rate is 5.08% from in1bank.
Across Canstar’s database, 628 home loan rates sit below 5.25%, unchanged from the previous week.
To compare the latest figures with the previous week's rate movements, click here.
Josh Sale (pictured), Canstar group manager for research, ratings, and product data, said home loan pricing showed a “nudging upward tilt” as lenders respond to ongoing economic uncertainty.
Sale noted that investor and fixed-rate movements were especially active, with selective repricing shaping lender strategy.
“On the investor side, ME Bank bumped up one variable rate by 0.05 percentage points, and in the fixed-loan arena, eight lenders lifted a total of 149 fixed-rate offers by an average of 0.17 percentage points.
"That said, competition is far from gone – three lenders cut 52 fixed rates by an average of 0.29 percentage points, showing that pricing strategy is still very selective,” he said.
Sale said the latest inflation data and revised RBA forecasts are pushing lenders to recalibrate both mortgage and deposit pricing.
“These moves are landing in a financial market that remains cautious, with the latest inflation surprise and updated RBA cash rate forecasts prompting lenders to recalibrate both lending and savings rates.”
Sale reinforced that the pace of change remains high across lending products.
“Overall, the message is this: home loan pricing is inching up... while the market isn’t homogeneous, the treadmill of change is still running. Borrowers... need to be alert, selective and swifter than ever.”
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