The latest data from Canstar showed minimal movement in home loan rates over the past week, with only four lenders adjusting their offerings.
Queensland Country Bank raised its fixed rates for owner-occupiers and investors by an average of 0.20%, while Bank of China trimmed two variable rates by 0.10%. In total, 57 fixed rates were reduced across four lenders, averaging a 0.14% cut. 
The lowest variable rate on Canstar's database remains at 5.75%, offered by Abal Banking, with just 48 rates below this mark—one more than the previous week.
“It was a relatively quiet week with just four lenders making changes to their home loan rates,” said Sally Tindall (pictured above), Canstar’s data insights director. 
The most substantial reduction came from Loans.com.au, which slashed its 3-year fixed rate by 0.55%, bringing it down to 5.69% for owner-occupiers paying principal and interest.
Meanwhile, variable rates showed little movement, with only Bank of China making slight reductions.
Compare the latest Canstar figures with the previous week’s.
Tindall anticipates that variable rates will remain stable for the rest of the year, as the Reserve Bank (RBA) takes its time to assess the impact of its previous rate hikes.
“We expect variable rates will hold more or less at this level through to the end of the year," she said, while also noting the ongoing pressure borrowers are facing from the 13 RBA rate increases over recent months.
APRA’s June data revealed a sixth consecutive rise in mortgage arrears, with 1.03% of all mortgages now in arrears. Although this figure is still low, Tindall warned that “this rate is likely to continue rising into 2025 as more households run their buffers dry.”
Owner-occupiers are notably over-represented in the arrears data, likely due to having no rental income to offset financial pressures.
Despite the financial strain, interest-only loans have remained stable, representing just 10.8% of all residential mortgages.
“It’s fantastic to see the vast majority of borrowers are continuing to pay down their debt,” Tindall said, suggesting that many homeowners are avoiding the temptation to switch to interest-only payments despite budgetary challenges.
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