Are we on the verge of a sweeping change in mortgage interest rates? Speculation is certainly starting to grow that the Reserve Bank may be forced to advance an increase in the official cash rate ahead of its 2024 forecast.
We will learn more about any changes in the thinking of the Reserve Bank when it meets at tomorrow’s November board meeting, but in the meantime, it is worth reflecting on the current state of the securities market. mortgage rates.
Recent movements in variable and fixed rates
After months of calm, the Big Four banks appear to have started to catch up on variable rates in recent weeks, with Commonwealth Bank and NAB cutting rates on basic mortgage offers. They weren’t alone though, as there were enough variable rate cuts from other lenders to push the Mozo database average down two basis points to a new low of 3.12. %. Here are some of the main changes:
- ABC withdrew 74bp from its Extra Home Loan, which means the new rate for owner-occupiers (70-80% LVR) is 2.39% pa (comparison rate of 2.40% pa *)
- Gateway bank lower the rate of its Green Plus Housing Credit (Premium Pack) by 45 bp, which means that the new rate for owner-occupants (
- ING reduced rates on its 25bp Mortgage Simplifier loan, which means the new rate for homeowners (
- NAB Withdrew 40bp from their base variable rate housing, which means the new rate for owner-occupiers (
The big banks have also been among the most important players on the fixed rate front. After some recent reductions, the Big Four banks are now offering a one-year fixed rate home loan with an overall rate of less than 2.00%. More generally, fixed rates at 1 and 2 years remain relatively stable, while fixed rates at 3, 4 and 5 years are still on the rise. Here are some of the main changes to fixed rates:
- ANZ reduces the rate at 1 year of its Fixed Rate (Breakfree Package) from 5 bp for owner-occupants (
- ABC reduces the 1-year rate of its Fixed-Rate Real Estate Loan (Heritage Pack) from 10 bp for owner-occupants (
- NAB reduced the 1-year rate of its Custom Housing Loan (Choice Package) from 10 bp for owner-occupants (
The lowest mortgage rates
These are just a few of the latest changes, but how do they compare to some of the highest rates around?
While we don’t track all home loans in the market, we do track over 500 home loans from over 80 lenders in the Mozo database. So here is a look at some of the lowest mortgage rates currently in the Mozo database that are available to homeowners (P&I repayments,
Lowest variable rates – Mozo database (November 1, 2021) ^^
Lowest and Average Fixed Rates – November Database (November 1, 2021) ^^
|Term||Leader rate||Fixed rate||Mozo average|
|1 year||Big Bank||1.59% (comparison rate 2.15% *)||2.27%|
|2 years||Big Bank||1.59% (comparison rate of 2.10% *)||2.25%|
|3 years||MOVE Bank||1.89% (comparison rate of 3.14% *)||2.41%|
|Four years||Virgin money||2.29% (comparison rate of 2.66% *)||2.68%|
|5 years||Freedom loan||2.47% (comparison rate of 2.14% *)||2.87%|
It should also be noted that there are even lower rates available for borrowers with lower loan-to-value ratios (LVRs) – namely below the 70% and 60% LVR thresholds.
RELATED: Several lenders offer $ 3,000 cash back to refinance your home loan
Ready to take advantage of a competitive rate on your mortgage? Check out some of the great fixed and variable offers in the table below, or head to the Mozo Home Loan Comparison Center to compare even more loans.
^^ 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
Mozo provides general product information. We do not consider your personal goals, your financial situation or your needs, and we do not recommend any particular product to you. You should make your own decision after reading the PDS or offering literature, or seeking independent advice.
While we pride ourselves on covering a wide range of products, we do not cover every product on the market. If you decide to request a product through our website, you will be dealing directly with the supplier of that product and not with Mozo.