Competition among lenders for new customers continues to build, with Canstar's latest Weekly Rate Wrap-up recording 52 lenders now offering at least one variable rate below the 6% mark.
Canstar data insights director Sally Tindall (pictured) said the trend reflects a deliberate push by smaller players.
"The out-of-cycle new customer variable rate cuts rolled in the door again this week as the mortgage wars continued to amplify," Tindall said, pointing to Homestar Finance, P&N, and BCU as lenders making a play for new business.
The moves came as six lenders cut a combined 12 owner-occupier and investor variable rates by an average of 0.11%, while four lenders trimmed 37 fixed rates by an average of 0.17%. AMP Bank was the lone outlier, lifting one investor variable rate by 0.05%.
Pacific Mortgage Group continues to hold the market's lowest variable rate at 5.69%, available at any loan-to-value ratio (LVR), with only two rates nationally now sitting below 5.75%.
Tindall said the average variable rate for owner-occupiers now sits at 6.25%, "more than two standard rate cuts below this at 5.69%" — the market's lowest rate, offered by Pacific Mortgage Group. Investors face a slightly higher average of 6.48%, against a lowest investor rate of 5.94%.
Tindall said that while the big four banks are not yet moving on official out-of-cycle pricing, that doesn't mean there's no room to negotiate.
"Yes, the majors are staying out of the official rate cutting for now but ring your big bank and you might find otherwise," she said.
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