The latest Canstar weekly rate wrap-up shows a wave of rate reductions across the mortgage market, with several lenders trimming both variable and fixed home loan rates amid growing speculation of a near-term cash rate cut.
According to Canstar, four lenders reduced four owner-occupier and investor variable rates by an average of 0.16%, while another four lenders cut 73 fixed rates by an average of 0.25%. Two lenders lifted three fixed rates by about 0.10%, highlighting a mixed response to recent economic signals.
The average variable rate for owner-occupiers paying principal and interest now sits at 5.93%, with the lowest variable rate available at 4.99% – offered by G&C Mutual Bank, Horizon Bank and Unity Bank, exclusively for first-home buyers.
For refinancers, Hume Bank has introduced a locals-only two-year introductory rate of 4.99%, while in1bank’s 5.08% variable remains among the most competitive nationwide for borrowers with at least 50% equity.
To compare the latest results with the previous data, read this article here.
Sally Tindall (pictured), Canstar’s data insights director, said the week’s economic data has shifted market sentiment after the unemployment rate climbed to a four-year high.
“The news this week has been dominated by the unexpected rise in unemployment, which hit a four-year high of 4.5% in September, up from a revised 4.3% the previous month,” Tindall said.
She noted that the rise has caught economists off guard, reigniting speculation that the RBA may deliver a rate cut as early as November.
“This sudden shift has certainly caught the attention of many economists, with some now speculating a November rate cut could be back on the cards,” Tindall said. “Of course, everything is contingent on the upcoming quarterly CPI results due out next Wednesday which are likely to record a rise in both headline and core inflation.”
Tindall said lenders’ recent moves reflected a mixed outlook on monetary policy but one that still leans toward an “easing bias.”
“Against this backdrop, lenders have made a flurry of rate adjustments, reflecting a mixed outlook on where monetary policy might head next, ultimately with an easing bias,” she said.
Over the week, four lenders trimmed variable rates, four cut fixed rates, and two increased a small number of fixed options. Tindall said the shifting activity showed lenders “continuing to see some strong competition at the sharper end of the market.
“The lowest variable rates still sit at 4.99%, offered by G&C Mutual, Horizon, and Unity Bank, however, all three are exclusive to first home buyers. While we’re not used to seeing the sharpest refinancing rates list above those for first home buyers, they aren’t too far behind.”
The number of rates below 5.25% on Canstar’s database has risen from 567 to 5,489 in the past week, suggesting continued competitive pricing for eligible borrowers.
Tindall said Hume Bank’s locals-only refinancing deal and in1bank’s equity-linked 5.08% offer highlight ongoing innovation in product pricing and borrower targeting.
“Hume Bank has now extended a locals-only, two-year introductory rate at 4.99% to refinancers. For those who live outside of the geographical boundaries, in1bank’s 5.08% rate remains one of the leading options for refinancers nationally,” she said.
For mortgage brokers, these moves signal strong competition in both first-home buyer and refinancing segments, with lenders positioning ahead of possible monetary easing.
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