Variable and fixed home loan rates saw both increases and cuts this week, with fixed rates outperforming variable, and a potential cash rate cut anticipated by February, Canstar reported.
Aussie Home Loans raised interest rates on two variable owner-occupier and investor loans by 0.05%, while five other lenders reduced rates across 50 variable loans for both owner-occupiers and investors.
Meanwhile, twelve lenders slashed fixed rates on 322 loans, with an average decrease of 0.24%.
Abal Banking continues to offer the lowest variable rate at 5.75%, although a surge in rate cuts means that 112 fixed rates now sit below this, a significant increase from last week’s 64.
“There was yet another downpour of fixed rate cuts this week,” said Sally Tindall (pictured above), Canstar’s data insights director.
Major institutions like Adelaide Bank and Teachers Mutual Group are among those offering reduced rates.
According to the latest data from APRA, home loan lending remains on an upward trend despite the current cash rate restrictions.
In contrast, Westpac saw a small dip in its residential loan book, its first decrease since late 2020.
CBA remains the outlier, maintaining that the first cut will arrive as early as December.
With 112 rates now under 5.75%, lenders are adjusting to economic expectations and APRA data trends. Although no immediate cuts to the cash rate are likely, February may mark the beginning of lower rates for borrowers.
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