Auswide Bank raised one owner-occupier variable rate by 0.1%, while three lenders reduced a total of 16 owner-occupier and investor variable rates by an average of 0.10%.
On the fixed-rate front, Regional Australia Bank increased nine owner-occupier and investor rates by roughly 0.1%. Meanwhile, two lenders lowered 31 owner-occupier and investor fixed rates by an average of 0.18%.
See last week’s rate changes in the table below.
The average variable interest rate for owner-occupiers paying principal and interest stands at 6.82%, with the lowest ongoing variable rate at 5.75%, provided by Abal Banking.
Canstar’s database shows an increase in competitively low rates, with 181 rates now below 5.75%, up from 180 the previous week.
See table below for the list of lenders offering rates below 5.75%.
Listed below are the lenders offering the lowest variable rates on the market this week.
Sally Tindall (pictured above), data insights director at Canstar, commented on the rate changes in light of potential RBA actions.
“While the market is firming up in favor of an RBA cut in February, banks are not responding with a flood of fixed rate cuts,” Tindall said. “Big four bank NAB might have cut its fixed rates last week; however, it was just one of two lenders that did so.”
She stressed that any decision by the RBA will be closely contested, given mixed economic signals.
Recent ABS data showed a subdued inflation increase of only 0.2% for the December quarter, continuing a trend of minimal inflationary pressure.
This has led experts, including those from SQM Research and major banks like NAB and Westpac, to anticipate upcoming rate cuts starting in February. These adjustments are viewed as necessary to align with the RBA's inflation target of 2-3%.
According to Canstar, Australia’s stable unemployment rate provides the RBA with leeway to cautiously approach rate cuts.
“If the RBA cuts the cash rate, the average owner-occupier with a $600,000 mortgage and 25 years remaining on their loan will see a drop in their monthly repayments of $92,” Tindall said, suggesting that borrowers should consider maintaining their current repayments to get ahead on their debt despite potential cuts.
