Australia’s latest record fixed rate disappears – but 181 rates are still below 2%

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BCU’s lowest ever 1-year fixed rate of 1.67% has been raised, marking the end of historically low fixed rates in Australia.

Analysis from RateCity.com.au shows that in each fixed rate category (1-5 years), the lowest rate has now disappeared.

However, the lowest ever variable rate of 1.77% for homeowners remains.

Lowest mortgage rates announced in Australia

Lowest rate in history Current lowest rate Difference
1 year fixed

1.67%

1.69%

0.02%

2 years fixed

1.74%

1.79%

0.05%

3 years fixed

1.75%

1.89%

0.14%

4 years fixed

1.89%

2.14%

0.25%

5 years fixed

1.99%

2.27%

0.28%

Variable

1.77%

1.77%

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Source: RateCity.com.au

Still a lot of mortgage rates below 2%

Despite the recent hikes in the lowest rates, there are still 181 mortgage rates below 2%.

The number of variable rates starting with a “1” has almost doubled in the past three months.

However, the number of 2 and 3 year fixed rates below 2% has both declined.

Mortgage rate below 2%

Pre COVID 3 months ago Today
1 year fixed

0

34

43

2 years fixed

0

70

68

3 years fixed

0

50

31

4 years fixed

0

7

0

5 years fixed

0

0

0

Variable

0

22

39

Total

0

183

181

Source: RateCity.com.auRates include homeowner and investor loans. Some lenders offer multiple rates below 2%. A list of less than 2 percent lenders available on request. Pre COVID is March 1, 2020, 3 months ago is April 30, 2021.

RateCity.com.au’s research director, Sally Tindall, said; “While the lowest fixed rates on record are gone, we are still in a low rate environment where homeowners can find a rate below 2%.

“We are in an unprecedented period of historically low rates – mortgage holders can take advantage of this because in two years the market will likely be completely different. We may never see such low rates again.

“Fixed or variable – customers still have a lot of choice – but with most of these rates reserved for new customers or those who want to repair, you have to be proactive.

“Even the Big Four banks offer at least a fixed rate below 2%, but they’re unlikely to all stay.

“Although the RBA has made it clear that it does not expect the cash rate to increase until 2024, banks are raising fixed rates up front and will continue to do so as we move closer to that. date, ”she said.

Lowest rates from RateCity.com.au database

Lender Rate
1 year fixed Big Bank

1.69%

2 years fixed Big Bank

1.79%

3 years fixed ING

1.89%

4 years fixed Teachers’ mutual

2.14%

5 years fixed Freedom loan

2.27%

Variable Reduce home loans

1.77%

Source: RateCity.com.au Note: Rates apply to owner-occupiers who pay principal and interest. Certain LVR requirements apply.

The Big Four Banks’ Lowest Rates for Homeowner Home Loans

ABC Westpac NAB ANZ
1 year fixed

2.09%

1.99%

2.09%

2.04%

2 years fixed

1.94%

1.89%

1.99%

1.94%

3 years fixed

2.19%

1.98%

2.08%

2.04%

4 years fixed

2.24%

2.19%

2.24%

2.49%

5 years fixed

2.99%

2.49%

2.49%

2.69%

Variable

2.69%

2.19% for 2 years then 2.69%

2.69%

2.72%

Source: RateCity.com.au. Note: Westpac rates are a loan to value ratio of up to 70%.


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