Australian mortgage brokers are staring down a sharply tougher rate environment as sub‑5% home loan deals retreat and lenders roll out widespread hikes across their books.
Fresh figures from Canstar show 35 lenders lifted 292 owner‑occupier and investor variable rates over the past week, with an average increase of 0.26 percentage points. Another 22 lenders raised 451 fixed rates by an average of 0.28 percentage points, signalling that sharper fixed deals are also firmly on the move.
For owner‑occupiers paying principal and interest, the average variable rate now sits at 6.05%. The lowest variable rate for any LVR on Canstar’s database is 4.99%, offered by Pacific Mortgage Group, underscoring how far borrowers may be able to move if they are prepared to refinance or switch.
The pool of genuinely sharp rates is shrinking fast. There are now just 69 home loan rates below 5.25% in Canstar’s database, down from 144 the previous week – a material contraction in the space of days that brokers will need to factor into client conversations.
Canstar insights director Sally Tindall said the market has decisively farewelled ultra‑cheap fixed loans.
“Last week, we officially kissed goodbye to fixed rates under 5%, in the week that was Valentines nonetheless, and while many borrowers will be hoping the move is more along the lines of ‘see you soon’, inflation, and the dogged determination from the RBA to get it in check has other ideas,” Tindall said.
“The lowest fixed rate on the Canstar database is now 5.09%, but even that has a target on its back, with ANZ the latest big bank to hike fixed rates in the wake of what is shaping up to be further cash rate rises.”
With more cash rate increases on the table, brokers may find rate reviews are an easier win than chasing rare headline discounts.
As Tindall notes: “Now that the majority of banks have hiked rates post-RBA, it’s time to take your home loan shopping. … A competitive rate is under 5.5% and while there’s plenty of banks in this list you’ve never heard of, Westpac is in there too. That’s enough to put your bank in the hot seat when you pick up the phone to negotiate.”
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