Winter is finally here, as are the colder days and longer nights. For many of us, that means taking life at a slower pace and indulging in the pleasures of food and warmth that come within.
No slowdown in mortgage rates, however! The latest edition of the Mozo Banking Roundup, which was released this morning, shows that lenders continue to cut and change fixed and variable mortgage rates at a steady pace.
So what has changed and how does your own rate compare? Find out in our latest snapshot.
Variable rate competition intensifies
At the start of last month, we reported a further increase in variable rate cuts after a long period in which the attention of lenders was largely focused on fixed rate cuts. This trend has continued in recent weeks, with a number of additional lenders announcing variable rate cuts on home loans. Some of the highlights include:
- Athena reduced its AcceleRATES variable home loan by 10 to 20 bps for homeowners, which means rates are as low as 1.99% (1.99% comparison rate *) for
- Bendigo Bank reduced its Express Housing Loan by 50bp, which means that the lowest rate offered to owner-occupiers (
- Citi withdrew 15bp from its Basic Variable loan which means its lowest rate for owner-occupiers (
- Home star reduced its Star Essentials home loan by 10bp, meaning homeowners (
- Macquarie reduced its Basic Housing Loan by 15bp to 2.49% (comparison rate of 2.49% *) for owner-occupants (
- TIC Knock reduced its owner-occupant variable mortgage rate (
As a result of the various reductions, the average variable mortgage rates ^^ in the Mozo database for homeowners (3.26%) and investors (3.66%) making principal and interest repayments have increased. both dropped to the lowest points recorded since we started tracking in 2015..
Competition at the lowest level of the market has also become even fiercer. There are now 41 lenders in our database with an overall variable rate of less than 2.50% for homeowners (
Lowest variable rates – Mozo database (June 1, 2021) ^^
Fixed rate division continues
In recent months, there has been a growing divide between shorter (1-3 years) and longer (4-5 years) fixed-rate mortgage loans, the former remaining relatively stable and the latter increasing.
According to the Mozo Roundup, this trend continued in May, with Citi, Commonwealth Bank, Greater Bank, ING, Macquarie, NAB, Qudos Bank, Tic: Toc and Well Home Loans among lenders raising 4 or Fixed rates at 5. years last month.
ING has also been one of the most notable lenders to cut its shorter rates. The bank reduced its 1 to 3 year fixed rate loan offer from 15 to 35 bp (with Orange Advantage), the lowest rate now being 1.84% (3.73% comparison rate *) for owner-occupants (
So what does the landscape look like at the sharp end of the fixed rate market? Here is an overview of the lowest fixed rates currently offered to owner-occupants in the Mozo database, along with our average owner-occupants for periods of 1 to 5 years:
Lowest and Average Fixed Rates – Mozo Database (June 1, 2021) ^^
|Term||Leader rate||Fixed rate||Mean|
|1 year||bcu||1.67% (comparison rate of 3.84% *)||2.32%|
|2 years||bcu||1.78% (comparison rate of 3.67% *)||2.27%|
|3 years||Credit Union SA||1.79% (comparison rate of 3.33% *)||2.31%|
|Four years||Vic Bank||1.95% (comparison rate of 2.72% *)||2.49%|
|5 years||UBank||2.24% (comparison rate of 2.33% *)||2.70%|
The Reserve Bank board also announces this afternoon its monthly monetary policy decision, which still has the potential to create disruption in the mortgage rate market, although it is widely believed that it will continue to hold control for the time being.
To stay up to date with this decision and the latest real estate stories, check out Mozo’s home loan news hub, or if you want to compare loans, you’ll want to take a look at our home loan comparison charts to find out. latest rates. .
^^ Interest rates are based on a homeowner repaying principal and interest on a loan of $ 400,000 with an LVR of 80%. For more information on average mortgage rates, see our dedicated Australian home loan statistics page.
^ See information on the Mozo Experts Choice Home Loan Awards
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