In Canstar's latest weekly interest rates wrap-up, notable movements in home loan rates across various lenders have been observed during the week of Jan. 22-29.
Four lenders increased 12 owner-occupier and investor variable rates by an average 0.28%, while one lender decreased three of theirs by an average 0.08%. Meanwhile, two lenders raised nine owner-occupier and investor fixed rates by an average of 0.21%, while five lenders reduced 107 of their fixed rates by an average 0.34%.
See table below for the list of lenders that adjusted their rates.
To compare with the previous week’s changes, click here.
Following the changes, the average variable interest rate for owner-occupiers paying principal and interest is now at 6.92% for an 80% LVR, with Australian Mutual Bank offering the lowest variable rate for any LVR at 5.69%, provided through a three-year introductory offer.
See table below for the top five lowest variable home loan rates on the Canstar database.
Steve Mickenbecker (pictured above), Canstar’s group executive, financial services, observed notwithstanding the nearly three months since the Reserve Bank’s last cash rate increase, there continues an ongoing trend of lenders increasing variable home loan rates in anticipation of the February board meeting, with four lenders having raised variable rates by an average of 0.28%. in the past week alone.
Mickenbecker expressed the expectation for no change to the cash rate in February, but acknowledged that a shock in the upcoming ABS inflation and new home lending data releases this week could potentially induce further adjustments in the cash rate.
“Wednesday’s December quarter CPI release is eagerly awaited,” he said. “If the Reserve Bank is disappointed with the progress of the inflation rate towards the 2% to 3% target band, mortgage holders could find themselves on the receiving end of another disappointment with a higher interest rate.”
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