According to the latest Canstar rate update, lenders continued easing home loan rates this week, with no increases recorded across the market.
Twenty-five lenders cut 221 owner-occupier and investor variable rates by an average of 0.27%, while 11 lenders reduced 154 fixed rates by an average of 0.35%.
These widespread reductions reflect ongoing competition among lenders and a response to the Reserve Bank’s (RBA) active rate-cutting cycle in 2025, as well as expectations of further monetary easing.
With RBA having already delivered three rate cuts this year and market sentiment turning towards additional reductions, lenders are moving quickly to pass on lower funding costs to borrowers.
The average variable interest rate for owner-occupiers paying principal and interest now sits at 6.1%.
For first-home buyers, the most competitive option is a 4.99% variable loan from Horizon Bank, the lowest variable rate for any LVR currently available.
Rate competition is intensifying, with 1,167 home loan rates now below 5.5% in Canstar’s database – up sharply from 943 the previous week.
This marks a notable shift from earlier in the year, when most variable rates for new borrowers were well above 5.5%.
The growing presence of sub-5% offers signals that lenders are keen to attract new business, particularly as housing market activity, while showing signs of recovery, remains below previous highs.
Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
