Over the past week, 13 lenders reduced 73 owner-occupier and investor variable rates by an average of 0.24%. Additionally, nine lenders cut 87 fixed rates for owner-occupiers and investors, with an average reduction of 0.31%, Canstar reported.
The average variable interest rate for owner-occupiers paying principal and interest now stands at 5.95%.
However, there are still standout offers in the market. Horizon Bank is offering the lowest variable rate for any LVR at 4.99%, exclusively for first-home buyers. For refinancers, in1bank leads with a rate of 5.08% for any LVR.
Currently, Canstar's database lists 443 rates below 5.25%.
Sally Tindall (pictured), Canstar insights director, highlights the fleeting nature of some of the best deals.
“What a difference a week makes with Easy Street’s lowest variable rate of 4.89% gone within days of it opening up,” Tindall said. “The special was clearly for a limited time only, with the bank’s lowest variable rate increasing to 5.34%.”
ANZ is making changes to its refinancing incentives.
“Also on the retreat, ANZ announced it was finally scrapping its refinancing cashback offer on 30 September 2025,” Tindall said. “That’s more than two years after the other big banks ditched their refinancing cashback offers, although ANZ does appear to be keeping its $3k first-home buyer incentive.”
Not all major lenders are pulling back on customer incentives.
“Not all major players are retreating from new customer sweeteners,” Tindall said. “Last Monday, CBA began offering Qantas Frequent Flyer points on its online-only Digi Home Loan in the same week, while Macquarie Bank piled in, dropping its lowest variable rate to 5.34% last week, in a bid to match both CBA and Westpac.”
Refinancing activity hits record highs
The competitive environment is intensifying, with refinancing activity reaching new heights.
“The move comes, unsurprisingly, at a time when ABS records show refinancing in dollar terms has hit a new record high,” Tindall said. “Great news for borrowers looking to capitalise on the mortgage wars.”
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