Canstar’s latest rate analysis highlighted significant activity in the home loan market, occurring amidst an uplift in Australia’s housing market, which has ended its downturn due to a rate cut that significantly boosted buyer sentiment.
Unity Bank raised four owner-occupier and investor variable rates by an average of 0.30%, while a substantial shift was seen across 41 lenders, who reduced 403 owner-occupier and investor variable rates by an average of 0.25%. Additionally, 14 lenders decreased 171 owner-occupier and investor fixed rates by the same margin, Canstar reported.
See table below for the summary of rate changes over the past week.
|
Average Home Loan Rate Change by Provider 3/03/2025 to 9/03/2025 |
|
|---|---|
|
Variable - Increase |
|
|
Unity Bank |
|
|
Variable - Decrease |
|
|
Heritage Bank |
|
|
Abal Banking |
Hume Bank |
|
Illawarra Credit Union |
|
|
Australian Military Bank |
IMB |
|
Australian Unity |
ING |
|
Bank Australia |
|
|
Bank of China |
ME |
|
Bank of Melbourne |
MyState Bank |
|
Bank Orange |
Newcastle Permanent |
|
BankSA |
NRMA Insurance |
|
BankVic |
P&N Bank |
|
BCU Bank |
People's Choice |
|
Bendigo Bank |
Police Credit Union |
|
QANTAS |
|
|
BOQ |
RACQ Bank |
|
Defence Bank |
St.George Bank |
|
Easy Street Fin Services |
The Capricornian |
|
Firstmac |
The Mutual Bank |
|
Geelong Bank |
Tiimely Home |
|
Great Southern Bank |
|
|
Greater Bank |
|
|
Fixed - Decrease |
|
|
Bank Australia |
Hume Bank |
|
Bank Orange |
ING |
|
BankVic |
|
|
Easy Street Fin Services |
People's Choice |
|
Firstmac |
Queensland Country Bank |
|
Geelong Bank |
The Capricornian |
|
Heritage Bank |
Unity Bank |
|
Source: www.canstar.com.au. Based on owner occupier and investment loans available for $600,000, 80% LVR and principal & interest and/or interest-only payments in Canstar's database. Excludes introductory and first home buyer only home loans. |
|
The average variable interest rate now stands at 6.59% for owner-occupiers paying principal and interest.
The lowest available variable rate across any loan-to-value ratio (LVR) is notably lower at 5.59%, not including introductory, first-home buyer, and eco-focused rates.
Canstar’s database now features 358 rates under 5.75%, indicating a broad downward trend in borrowing costs.
Here’s the list of lenders offering rates under 5.75%:
|
Lenders with home loan rates below 5.75% |
|
|---|---|
|
AMP Bank |
IMB |
|
ING |
|
|
Abal Banking |
|
|
Australian Mutual Bank |
Macquarie Bank |
|
Australian Unity |
ME |
|
Bank Australia |
MOVE Bank |
|
Bank First |
Newcastle Permanent |
|
Bank of China |
Northern Inland CU |
|
Bank of Melbourne |
NRMA Insurance |
|
Bank Orange |
P&N Bank |
|
BankSA |
Pacific Mortgage Group |
|
BankVic |
People's Choice |
|
BCU Bank |
Police Bank |
|
Bendigo Bank |
Police Credit Union |
|
Beyond Bank |
Qudos Bank |
|
BOQ |
Queensland Country Bank |
|
Commonwealth Bank |
RACQ Bank |
|
Community First Bank |
Reduce Home Loans |
|
Easy Street Fin Services |
Regional Australia Bank |
|
Firefighters Mutual Bank |
St.George Bank |
|
G&C Mutual Bank |
Summerland Bank |
|
Geelong Bank |
|
|
GMCU |
Teachers Mutual Bank |
|
Greater Bank |
The Capricornian |
|
Health Professionals Bank |
The Mac |
|
Heritage Bank |
The Mutual Bank |
|
Homestar Finance |
Tiimely Home |
|
Horizon Bank |
UniBank |
|
HSBC |
Unity Bank |
|
Hume Bank |
Unloan |
|
Illawarra Credit Union |
Westpac |
|
Source: www.canstar.com.au - 9/03/2025. Based on owner occupier and investment loans on Canstar's database, available for any loan amount, LVR and repayment type. Based on lenders that have at least one fixed/variable rate below 5.75%. |
|
Sally Tindall (pictured), Canstar’s director of data insights, remarked on the recent market trends.
“There was a barrage of variable rate cuts this week as the RBA-initiated changes continued to roll in,” Tindall said. “At last count, a total of 80 lenders have now cut variable rates following the cash rate change, with only a small handful still left to follow.
“There are now 35 lenders offering at least one variable rate under 5.75%, a significant change considering there were no lenders with these kinds of offers three weeks ago outside of introductory rates and green loans. While not one of the big four banks are in this list, CBA’s Unloan and Bendigo’s Tiimely Home Loans are.”
On the subject of fixed rates, Tindall noted that they are decreasing along with variable rates, with 14 lenders having reduced a variety of rates recently.
She highlighted that Australian Mutual now offers the lowest fixed rate available on the Canstar database, at 5.29% for the next three years. Despite this competitive rate, given RBA’s recent comments downplaying further rate cuts and the general apprehension among Australians about fixing rates, she does not expect it to attract significant attention.
