Two lenders trimmed 12 owner-occupier and investor variable rates by an average of 0.07% last week, while six lenders cut 151 fixed rates by an average of 0.17%, according to Canstar.
The average variable interest rate for owner-occupiers paying principal and interest is now 5.95%. The lowest available variable rate is 4.99% from Horizon Bank, offered exclusively to first-home buyers. For refinancers, in1bank leads with a 5.08% rate.
Canstar notes there are currently 470 rates below 5.25% on its database, up from 443 the week prior.
Sally Tindall (pictured above), Canstar’s insights director, said activity is easing after the Reserve Bank’s rate cuts earlier this year.
“The post-August cash rate cuts are now behind us, with the number of lenders changing variable rates in the past week back to more normal levels,” Tindall said.
“Fixed rates continue to tumble but not in the droves we’ve seen in previous weeks, with six lenders paring back their fixed rate offerings by a moderate 0.17 percentage points, on average.”
“With the First Home Guarantee changes set to launch in two weeks, there’s been a lot of focus on these buyers and the impact the expansion of the scheme might have on property prices,” Tindall said.
Great Southern Bank has also extended its reach by offering 40-year home loans to eligible first-home buyers – joining Australian Mutual Bank, G&C Mutual, RACQ and Pepper Money in offering mortgages beyond the 30-year standard term.
Meanwhile, recent APRA data shows mortgage arrears eased in the June 2025 quarter, with 30-89 days past due and non-performing loans both falling slightly. New lending surged past $187.6 billion, and brokers now handle 63.4% of new term loans, reinforcing their growing importance.
Tindall also pointed to ASIC’s proceedings against ANZ as a timely reminder of borrower rights. She said that while banks usually have hardship teams to assist customers in difficulty, unresolved complaints can be taken to the Australian Financial Complaints Authority (AFCA) for independent help at no cost.
“AFCA won’t take on every complaint. For example, if a customer is unhappy with a fee increase, it’s unlikely to take this any further,” Tindall said. “However, if the fee has been incorrectly charged and they have tried but can’t get a resolution from their bank, AFCA might be able to help engage in independent negotiations at no cost to the consumer.
Tindall added that Australians in hardship can also turn to the National Debt Helpline, which connects people with free and independent financial counsellors to help them get back on track.
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