Revealed – what's happening with lenders' mortgage rates?

Canstar has the latest

Revealed – what's happening with lenders' mortgage rates?


By Mina Martin

The Reserve Bank may have kept the cash rate on hold at 4.1% for the third consecutive month, but home loan rates have continued to move, with several lenders changing their fixed and variable rates just this week, according to Canstar’s weekly interest rate wrap and insights.

Three lenders – Bank of Sydney, Beyond Bank, and G&C Mutual – lifted owner-occupier and investor variable rates by an average of 0.19%, while five lenders – Auswide Bank, Greater Bank, Heritage Bank, Newcastle Permanent, and People’s Choice – cut their variable rates by an average 0.12%.

When it comes to fixed rates, seven lenders – Auswide Bank, Firefighters Mutual Bank, G&C Mutual Bank, Health Professionals Bank, Summerland Credit Union, Teachers Mutual Bank, and UniBank –

raised theirs by an average 0.16%, while two – Greater Bank and Newcastle Permanent – made fixed rate cuts by an average 0.21%.

See table below for this week’s rate change moves:

Canstar’s database showed Orange Credit Union now has the lowest variable rate for owner-occupiers paying principal and interest, with its introductory rate offering of 5.44%.

See table below for the top-five lowest owner-occupied home loan rates on the Canstar database:

The Canstar database also showed that there were 14 rates below 5.5%, down from 16 the prior week. These rates were from the lenders listed in the table below.

Canstar data shows a 1.24 percentage point difference between the average-owner occupied variable rate and the cheapest in the market. A saving of $400 per month on a $500,000 owner-occupier loan over 30 years,” said Effie Zahos (pictured above), Canstar’s editor-at-large and money expert.

“Those wanting to lock in their rate for one year could generate a saving of $350 per month on a $500,000 loan over 30 years with 20% equity when moving from the average variable rate to the cheapest one-year fixed rate in the market.”

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