Canstar, a financial comparison service, has released a detailed report on the recent movements in home loan rates across Australia, for the week of April 29-May 6.
According to Canstar, the mortgage market has seen varied movements recently, with three lenders hiking 14 owner-occupier and investor variable rates by an average of 0.19%, while two lenders reduced 9 such rates by an average of 0.14%.
In fixed-rate segments, two lenders raised 28 rates by a significant average of 0.94%, but this was contrasted by 10 lenders slashing 141 fixed rates by an average of 0.21%.
See the summary of rate adjustments below.
For those paying principal and interest, the average variable interest rate for owner-occupiers stands at 6.88%. The lowest variable rate currently available is 5.74% from Regional Australia Bank, offered as a three-year introductory loan.
Notably, the number of rates below 5.75% has increased slightly, from 23 to 24 on Canstar’s database. The lenders offering these low rates come from Australian Mutual Bank, Bank Australia, Horizon Bank, HSBC, LCU, People’s Choice, Police Credit Union, RACQ Bank, Regional Australia Bank, The Mac, and Unity Bank.
Steve Mickenbecker (pictured above), Canstar’s finance expert, voiced concerns about the economic climate’s impact on lending rates.
“The blowout in inflation in the March quarter, up 0.4% from the prior quarter to 1%, means that borrowers are not out of the woods yet,” Mickenbecker said. “Cash rate cuts are likely to be pushed back and if we don’t see lower inflation in the June quarter a rate increase later this year will be the next bitter pill for borrowers to swallow.”
Mickenbecker highlighted the active rate adjustments by lenders.
“Regardless of the Reserve Bank’s agenda, lenders have been busy moving rates this year despite the cash rate remaining on hold,” he said.
Mickenbecker detailed that since January, 33 lenders have increased variable rates by an average of 0.17%, and 10 have hiked fixed rates by an average of 0.54%. Conversely, rate reductions have also been prevalent, with 29 lenders cutting variable rates by an average of 0.27% and 50 reducing fixed rates by an average of 0.33%.
“The up and down traffic for interest rate moves confirms that we are at or near the turning point in the cycle, with lenders holding varying views on timing and fine-tuning their competitive offerings for the next phase,” Mickenbecker said.
Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
