The mortgage market experienced a mix of rate moves last week, according to the latest Canstar data – set against mounting anticipation of an RBA cash rate cut, with economists and markets largely expecting a reduction of 25 basis points that could take the rate to 3.6%.
ANZ Plus increased two owner occupier and investor variable rates by 0.16%, while two lenders cut six owner occupier and investor variable rates by an average of 0.06%. Eight lenders also reduced 71 fixed rates by an average of 0.19%.
The average variable interest rate for owner occupiers paying principal and interest is now 6.21%, with the lowest variable rate for any LVR sitting at 4.99%, offered by Police Credit Union. Canstar’s database lists 910 rates below 5.5%, up from 847 the previous week.
To compare the latest figures with the rate moves from the previous week’s, click here.
“It was a rollercoaster of a week in the mortgage market with Bank of Queensland posting the new lowest fixed rate of 4.89 per cent, while ANZ was busy hiking its lowest rate, available on its digital-only platform, up to 5.75 per cent,” said Sally Tindall (pictured), Canstar insights director.
“This hike might bring ANZ’s online-only offering closer to the rest of the bank’s advertised variable rates, but it is a move away from the cut-throat competition in the refinancing market, particularly given the bank also pulled the cashback offer on ANZ Plus loans from the start of this month – a deal that’s still on offer on the bank’s main mortgages.”
“In what was previously a three-way tie, CBA and Westpac now have the lowest variable rates out of the big four banks, although it will be interesting to see how the chips fall after 2.30pm today, assuming the RBA actually pulls the trigger on a cash rate cut this time around,” Tindall said.
“While we expect banks to do the right thing and pass on the cut to existing variable customers, we could see some banks decide not to pass it on in full to their lowest new customer rates.
“We’ll have live updates from 2.30pm Tuesday on our Canstar Rate Tracker page, outlining each bank announcement - provided the RBA does cut the cash rate of course.”
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