In anticipation of the announcement of the Reserve Bank’s new cash rate hike, many banks have started to jump in and raise rates, especially fixed rates.
So which lenders have raised their rates? What do the lowest and average home loan rates look like in the Mozo database? And how are the variable rates of mortgages doing? Find out below.
Recent evolution of fixed and variable rates
Oh boy, where do I start as there have been a lot of changes lately. The Mozo database found a total of 57 interest rate increases, so it would be a bit difficult to highlight them all. But here are some of the more notable changes:
In the fixed rate space, our database has seen these major changes:
- Online lender 86,400 increased all of its fixed rates by 29 to 155 basis points (bps) with the 1-year homeowner rate rising from 2.24% per year to 2.99% per year (comparative rate of 2.50 % per year*).
- big bank ABC increased its rates by 20 to 55 basis points for all types of borrowers and now has only one flat rate below a “3”.
- macquarie also made the decision to raise its fixed rates by 25 to 115 basis points with the biggest jump on its 2-year terms. Now, its best offer sits at 2.99% per annum (comparative rate of 2.26% per annum*).
During this time, the notable changes in the variable rate came from:
- ING increased its homeowner P&I rates for
- ANZ removed its Breakfree plan on all of its product options, but maintained the same discount on standard variable pricing.
Average mortgage rates
With so many changes, how has this changed the average home loan rates tracked by the Mozo database? The average floating rate was mostly the same from month to month. However, it’s a different story for fixed rates, as they continue their upward trajectory on all terms.
You can visit our Australian home loan statistics page if you want to find more graphs of average home loan rates and loan volumes.
The lowest mortgage rates
As lenders continue to change their rates, the leaders holding the position of the cheapest home loans are an ever-changing game. Here is an overview of the lowest variable and fixed mortgage rates and LVR
Lowest Variable Rates — Mozo Database (April 1, 2022)^^
|Lender||To lend||Floating rate|
|Reduce home loans||super saver||1.79% per year (comparative rate of 1.88% per year*)|
|Good home loans||Well balanced||1.85% per year (comparative rate of 1.88% per year*)|
|Homeloans360||Owner variable||1.87% per year (comparative rate of 1.87% per year*)|
|Pacific Mortgage Group||standard-variable||1.87% per year (comparative rate of 1.87% per year*)|
|TIC Toc||Variable||1.89% per year (comparative rate of 1.90% per year*)|
Lowest and Average Fixed Rates — Mozo Database (April 1, 2022)^^
|1 year||Mutual G&C||1.98% per year (comparative rate of 1.99% per year*)|
|2 years||BankWAW||2.25% per year (comparative rate of 3.89% per year*)|
|3 years||BankWAW||2.55% per year (comparative rate of 3.81% per year*)|
|Four years||The star of the hearth||2.89% per year (comparative rate of 2.38% per year*)|
|5 years||The star of the hearth||3.09% per year (comparative rate of 2.51% per year*)|
It should be remembered that these are the lowest rates available in our database for borrowers with an LVR
RELATED: Housing Retrospective: Thirty Years of Australian Housing Trends
Thinking of buying a new property or looking to refinance your existing home loan? Use Mozo’s handy home loan comparison chart to look at lenders side-by-side.
^^Interest rates are based on a homeowner making principal and interest payments on a $400,000 loan with an 80% LVR. For more information on average mortgage rates, see our Australian mortgage statistics page.
* ATTENTION: This comparison rate only applies to the example or examples given. Different amounts and durations will result in different comparison rates. Costs such as withdrawal charges or prepayment charges, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed corresponds to a guaranteed loan with monthly principal and interest repayments of $150,000 over 25 years.
** Initial monthly repayment figures are estimates only, based on the advertised rate, loan amount and term entered. Rates, fees and charges, and therefore the total cost of the loan, may vary depending on your loan amount, loan term and your credit history. Actual repayments will depend on your personal circumstances and changes in interest rates.
^ See Mozo Experts Choice Home Loan Awards information
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