Here’s where fixed and variable rates stand


It’s been more than two months since the Reserve Bank’s first interest rate cut in March, but the fallout is still being felt, with home loan rates continuing their downward trajectory through April.

According to the recently released April 2020 Mozo Banking Roundup, fixed rate cuts again dominated rate changes in the home loan market, as 315 cuts were recorded in the Mozo database during the month.

While many of the lowest fixed rates for homeowners remained unchanged, there were still a number of notable moves in April.

ANZ cut its range of fixed home loans from 19 to 59 basis points. Its fixed-rate Breakfree plan is now at 2.19% (comparison rate of 4.00%*) for 2 years and 2.29% for 3 years (comparison rate of 3.89%*) – the lowest comparable rates offered among the Big Four.

Elsewhere, Kogan Money (60-174 bps) and Virgin Money (20-160 bps) both slashed their respective bids significantly, while Suncorp slashed some fixed-rate home loans by up to 35 bps .

Following the recent changes, here’s how the average rates (based on a $400,000 homeowner loan with an LVR of 80%) on fixed home loans tracked in the Mozo database stack up as of May 5:

  • 1 year: 2.71%
  • 2 years: 2.65%
  • 3 years: 2.72%
  • 4 years : 3.05%
  • 5 years: 3.08%

And here are the current fixed mortgage market leaders in the Mozo database:

The decline in variable rates continues

Although calmer, there was also some action in the variable rate mortgage world in April.

The main changes were those made to the additional Commonwealth Bank home loan. While the rate for borrowers with an LVR below 80% has been reduced to 2.79% (2.81% comparison rate*), CommBank has increased the rate for LVR above 80% to 3.13 % (comparison rate of 3.15%*).

UBank (25 bps), Bank of Queensland (17 bps), Teachers Mutual Bank (25 bps) and new online lender Yard (25 bps) were among the other lenders to make variable rate cuts in April.

These latest reductions mean that the average variable rate in the Mozo database (based on a $400,000 homeowner loan with an LVR of 80%) is now 3.44%, while some of the lowest variable offers from our database are as follows.

RELATED: April Savings Account Preview: Further cuts leave BOQ at 2.00%

Want to see how your own mortgage rate compares? Check out some of the best deals in the chart below, or head over to Mozo’s dedicated home loan comparison chart to compare fixed and variable rates from a range of lenders.

ATTENTION: This comparison rate only applies to the example or examples given. Different amounts and durations will result in different comparison rates. Costs such as withdrawal charges or prepayment charges, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed corresponds to a guaranteed loan with monthly principal and interest repayments of $150,000 over 25 years.

Initial monthly repayment figures are estimates only, based on the advertised rate, loan amount and term entered. Rates, fees and charges, and therefore the total cost of the loan, may vary depending on your loan amount, loan term and your credit history. Actual repayments will depend on your personal circumstances and changes in interest rates.

^ See Mozo Experts Choice Home Loan Awards information

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