The cash rate may have been kept on hold at 4.1% for the third time running, but mortgage rates have continued to move, with a number of lenders changing their fixed and variable rates over the last week, according to Canstar’s weekly interest rate wrap and insights.
From Sept. 11 to 18, two lenders – AMP Bank and MyState Bank – lifted 15 owner-occupier and investor variable rates by an average 0.24%; while another two – Bendigo Bank and NAB, cut five of theirs by an average 0.39%. See table below for these variable rate changes.
Note: Based on owner occupier and investment loans available for $500,000, 80% LVR and principal & interest and/or interest-only payments in Canstar's database. Excludes introductory and first home buyer only home loans.
Over the same period, some fixed rates changes have also been made. Three – AMP Bank, The Capricornian, and TicToc Home Loans – increased 42 owner-occupier and investor fixed rates by an average 0.27%, while seven – AMP Bank, Bank of Melbourne, BankSA, NAB, St. George Bank, Up, and Westpac – had 38 of theirs slashed by an average 0.27%. See table below for the fixed rate changes this week.
Note: Based on owner occupier and investment loans available for $500,000, 80% LVR and principal & interest and/or interest-only payments in Canstar's database. Excludes introductory and first home buyer only home loans.
Canstar’s database showed the average variable interest rate for owner occupiers paying principal and interest is 6.68% at 80% LVR and the lowest variable rate for any LVR is 5.44%, which is offered by Orange Credit Union.
The Canstar database also showed that there were 13 rates below 5.5%, down from 14 the prior week. These rates were from the lenders listed in the table below.
Meanwhile, Effie Zahos (pictured above), Canstar money expert and editor-at-large, said the spring property season had well and truly kicked off.
“The latest data from CoreLogic shows the flow of new capital city listings is rising sharply,” Zahos said. “The flow of fresh stock to market is 6.3% higher than the same time last year and 11% above the previous five-year average. With most experts predicting the cash rate has peaked, we may see an increase in buyers willing to jump in as they feel a greater sense of stability.”
The Canstar leader urged anyone planning to buy a property to consider seeking pre-approval for a loan.
“Essentially this gives buyers a solid idea of how much they could potentially borrow,” Zahos said. “It’s important to understand that pre-approved loans are not 100% guaranteed. “Lenders still need to confirm that they’ll accept the chosen property as security and that your details haven’t changed since you first sought the pre-approval. Rate changes could also impact your application.”
For instance, a rate hike in a rising interest rate market, could reduce Australians’ borrowing capacity.
“It’s also worth noting that you would not be able to ask for a rate lock-facility as they typically are not available on pre-approved loans,” Zahos said.
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