Mortgage brokers are facing another round of rate uncertainty as more lenders lift both fixed and variable home loan rates ahead of the Reserve Bank’s next move.
The shift is tightening conditions for first-home buyers and property investors and squeezing borrowing capacity across the board.
New data from Canstar’s latest Weekly Rate Wrap-up shows the extent of these moves. Four lenders lifted 22 owner-occupier and investor variable rates over the week, with an average rise of 0.13%. A further 14 institutions increased 215 fixed rates for owner-occupiers and investors, averaging a 0.21% jump.
For owner-occupiers paying principal and interest, the average variable rate now sits at 6.17%. The sharpest variable offer in Canstar’s database remains 5.19% from LCU, with only five rates below 5.25%.
These changes come as markets rapidly reprice expectations for the Reserve Bank’s next cash rate moves. Canstar insights director Sally Tindall (pictured) said the pace of shifting forecasts has been striking.
“They say a week is a long time in politics, but it’s potentially even longer in the world of economic forecasts,” Tindall said.
“Last Tuesday, all four big banks were expecting the RBA to hold this week’s board meeting and then hike in May. By Thursday, all four had pivoted to a hike in March and another one in May.”
However, she added that “from where I sit, a rate hike is still not a done deal” given uncertainty around the broader economy and labour market.
For brokers working with rate-sensitive clients, the pre‑emptive moves by lenders are a clear signal.
“For borrowers, these pre-emptive rate rises highlight the importance of reviewing your mortgage and comparing what else is out there,” Tindall said.
She suggested that a “competitive offer is currently around 5.5%” for owner-occupiers, underlining the opportunity for brokers to push for sharper pricing or explore refinancing options where serviceability allows. Brokers can also help clients weigh up fixed versus variable strategies as mortgage rates continue to evolve.
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