Last week's home loan rate shifts revealed

Canstar has the latest

Last week's home loan rate shifts revealed


By Mina Martin

In the latest update from Canstar on home loan rate movements, the landscape showed a mix of increases and decreases across the board.

During the Feb. 26-March 24 period, 10 lenders opted to increase their owner-occupier and investor variable rates by an average of 0.16%, while Up Bank took a different path by reducing one owner-occupier and investor variable rate by 0.2%.

Meanwhile, two lenders have cut 26 owner-occupier and investor fixed rates by an average of 0.24%, with no lenders choosing to increase fixed rates in the past week.

See the table below for a snapshot of last week’s home loan rate movements.



Variable and fixed rate overview

The current average variable interest rate for owner-occupiers paying principal and interest stands at 6.90% for loans with an 80% LVR. The lowest variable rate available for any LVR is 5.69%, offered by Australian Mutual Bank as an introductory rate.

Despite the changes, there are 19 rates below 5.69% listed on Canstar's database. This figure has consistently remained stable for the fifth consecutive week, including last week’s review.

See table below for the lowest variable home loan rates.



Canstar expert commentary

Steve Mickenbecker (pictured above), Canstar’s finance expert, offered insights into the broader economic context influencing these rate movements.

“Under its new schedule, the Reserve Bank board looks likely to leave the cash rate unchanged on March 19, as the inflation rate drifts down towards the 2% to 3% target band,” Mickenbecker said. “Yet still 10 lenders are lifting variable rate home loans, by an average of 0.16%.

“A cut to the cash rate looks near inconceivable until after the next two quarterly consumer price index releases from the Bureau of Statistics, making the August six Reserve Bank Board meeting the earliest date imaginable for a rate cut.”

He said mortgage holders face a decision: wait at least five months in hopes of a rate cut or act now to secure a better deal. With lenders competing for refinancing opportunities, Canstar highlighted 225 loans with rates below 6%, offering a silver lining for those willing to explore their options.

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