The latest Canstar Weekly Interest Rate Wrap revealed a mix of increases and reductions across home loan rates for owner-occupiers and investors:
See table below for a summary of last week’s rate adjustments.
The average variable interest rate for owner-occupiers paying principal and interest stands at 5.69%, while the lowest variable rate on Canstar’s database is 5.75% (excluding intro rates), offered by Abal Banking.
Among the key highlights, ANZ lowered its Simplicity Plus and Plus new customer variable rates, even though it already had the lowest advertised rate among the big four banks. Its digital-only offering, ANZ Plus, now boasts a highly competitive 6.09% rate.
“ANZ’s decision underscores its commitment to remaining competitive, even as other lenders prioritise profit margins,” said Sally Tindall (pictured above), Canstar’s data insights director.
In contrast, the Bendigo Group, including partners Tiimely Home Loans, Qantas Money, and NRMA Insurance, raised rates by up to 0.05% last week. Bendigo Bank is reportedly stepping back from the refinancing competition to focus on profit margins.
“Despite these hikes, rate chasers still have options, with Tiimely Home Loans offering a 5.99% rate,” Tindall said.
The release of RBA’s latest minutes last week prompted Westpac to push back its forecast for the first rate cut to May. Now, major bank economists are divided, with ANZ expecting February cuts while Westpac and NAB align with a May timeline.
“It’s a balanced market right now, with lenders adjusting strategies to align with their long-term goals,” Tindall said.
Canstar’s database now lists 235 rates below 5.75%, offering borrowers plenty of competitive choices despite the shifting landscape. Borrowers are encouraged to explore their options and monitor rate changes as forecasts evolve.
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