The weekly Canstar update shows that two lenders cut five owner-occupier and investor variable rates by an average of 0.09%, while four lenders reduced 160 fixed rates by an average of 0.16%.
The average variable rate for owner-occupiers paying principal and interest now sits at 5.93%.
For first-home buyers, the lowest variable rate available for any LVR remains 4.99%, offered exclusively by G&C Mutual Bank, Horizon Bank, and Unity Bank.
For refinancers, the lowest variable rate for any LVR is 5.08% from in1bank.
Competition remains firm across the sector, with 567 rates below 5.25% now listed on Canstar’s database — up from 535 the prior week.
Sally Tindall (pictured), Canstar’s data insights director, said the subdued activity shows the market is gradually returning to normal following the recent rate cut cycle.
“There wasn’t a huge amount of movement in the mortgage market this week,” Tindall said. “The Teachers Mutual Group cut fixed rates by an average of 0.16 percentage points, while Defence Bank and Bank of Us trimmed back a couple of variable rates. It’s a sign the market is now finally starting to die back down following the August cash rate cut but that some smaller institutions are still jostling to attract new borrowers.”
Tindall said the next two key data releases — ABS’s quarterly CPI figures and Labour Force report — could influence RBA’s monetary policy stance heading into year-end.
“All eyes are now on the ABS’s quarterly CPI results, due out in just over two weeks’ time, although at this stage, it's difficult to see the quarterly inflation landing in a position that the RBA is happy enough with to cut the cash rate further this year,” she said.
Tindall added that jobs data could also play a role in shaping rate expectations.
“We’ll also get ABS Labour Force figures on Thursday, which could influence the RBA’s view on how tight the jobs market is. If we continue to see signs of easing employment conditions, it may add weight to the case for rate relief but at this stage, it would have to be a noticeable shift,” the Canstar leader said.
Despite limited movement, Tindall said borrowers have ample opportunity to refinance and secure lower rates, with dozens of lenders still offering competitive pricing.
“With over 30 lenders offering at least one variable rate under 5.25%, it’s the perfect time to spring clean your home loan and make sure you’re getting a competitive deal,” she said.
Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
