Canstar, a financial comparison site, has released the latest interest rate movement for home loans.
The report found that 18 lenders have increased 130 owner occupier and investor variable rates by an average of 0.24%. Four lenders have cut 16 owner-occupier and investor variable rates by an average of 0.35% while 13 lenders have increased 178 owner occupier and investor fixed rates by an average of 0.16%.
The last week’s rate movements are as follows:
This week’s average variable interest rate for owner occupiers paying principal and interest is 6.88% for 80% LVR. The lowest variable rate for any LVR is 5.69%. This was offered by Australian Mutual Bank (Intro Rate), The Mutual Bank, LCU (first home buyer), and The Capricornian.
In Canstar’s database, there were no variable rates that were below 5.50%. Only one fixed rate remained at 5.48% which is a 3-year fixed rate loan from the Australian Mutual Bank. However, there were 20 rates that were below 5.75%.
The following table shows the five lowest variable home loan rates in Canstar’s database.
Effie Zahos (pictured), Canstar’s editor-at-large and money expert, noted that the Reserve Bank of Australia was not under any pressure to hike the cash rate before Christmas.
“With monthly inflation figures coming in better than expected, retail sales down, slightly higher unemployment numbers and a softening of property prices, there appears to be no immediate pressure for the Reserve Bank of Australia to increase the cash rate in December,” Zahos said.
“As the central bank won’t then meet again until February, it means borrowers could have some reprieve over the holiday season.”
Zahos said that mortgage holders have felt the impact of the 13 rate hikes that they had experienced since May 2022, noting that a Canstar survey found that 35% of households have already accessed money from their redraw or offset account in order to cover repayments as well as everyday expenses.
A Canstar survey found that maintenance and home insurance are some of the expenses that Australian homeowners were burdened by along with mortgage repayments. Zahos said that homeowners may be able to save $905 per year on home and contents insurance premium by switching providers as well as increasing excess and bundling policies with one insurer.
