In anticipation of the central bank’s new announcement to raise interest rates, many banks have started to react hastily and raise their interest rates – particularly fixed interest rates.
Which lenders have increased their interest rates? What are the lowest and average home loan rates in the Mozo database? And what about variable rate home loans? Find out below.
Current fixed and floating rate movements
Oh boy where do I start because there have been a lot of changes lately. The Mozo database found a total 57 rate hikes, so it would be a bit difficult to highlight them all. But here are some of the more notable changes:
In the fixed income space, our database has undergone these significant changes:
- online lenders 86 400 increased all fixed rates by 29-155 basis points (bp), with the 1-year owner-occupancy rate jumping from 2.24% pa to 2.99% pa (2.50% pa comparable rate*).
- big bank CBA raised its rates by 20-55 bps for all borrower types and now has only one package rate below a “3”.
- Macquarie also made the decision to increase its fixed interest rates by 25-115bps, the largest jump in its 2-year maturities. Now his best offer is 2.99% pa (2.26% pa comparable rate*).
Meanwhile, the notable floating rate changes came from:
- ING increased its owner-occupier P&I rates for
- NO has removed its Breakfree package for all of its product options but retained the same discount on standard variable rates.
Average home loan rates
With so many changes, how has the average home loan interest rate tracked by the Mozo database changed? The average variable interest rate was mostly the same from month to month. The situation is different for fixed rates, however, as they continue their upward trend across all maturities.
For more graphs showing average home loan rates and loan size, visit our Australian home loan statistics page.
Lowest home loan interest rates
As lenders continue to change their interest rates, the position of the market leaders who hold the position of the cheapest home loans is an ever-changing game. Here’s a look at the lowest adjustable and fixed mortgage rates and LVR
Lowest Floating Rates – Mozo database (April 1, 2022)^^
|Reduce home loans||super saver||1.79% pa (1.88% pa comparable rate*)|
|Well, home loans||Well balanced||1.85% pa (1.88% pa comparable rate*)|
|Home Loan360||owner variable||1.87% pa (1.87% pa comparable rate*)|
|Pacific Mortgage Group||default variable||1.87% pa (1.87% pa comparable rate*)|
|Tic: Toc||variable||1.89% pa (1.90% pa comparable rate*)|
Lowest and average fixed interest rates – Mozo database (April 1, 2022)^^
|expression||rate leaders||Fixed rate|
|1 year||G&C reciprocity||1.98% pa (1.99% pa comparison rate*)|
|2 years||BankWAW||2.25% pa (3.89% pa comparable rate*)|
|3 years||BankWAW||2.55% pa (3.81% pa comparable rate*)|
|4 years||home star||2.89% pa (2.38% pa comparable rate*)|
|5 years||home star||3.09% pa (2.51% pa comparable rate*)|
Keep in mind that these are the lowest rates available in our database for borrowers with an LVR
RELATED: Housing Retrospective: Thirty Years of Australian Housing Trends
Are you thinking about buying a new property or would you like to refinance your existing home loan? Use Mozo’s handy home loan comparison chart to screen lenders side-by-side.
^^Interest rates are based on an owner-occupier making principal and interest repayments on a $400,000 loan with an LVR of 80%. For more information on average mortgage rates, visit our Australian Home Loan Statistics page.
* WARNING: This rate of comparison applies only to the example or examples provided. Different amounts and maturities lead to different comparison rates. Costs such as redemption fees or prepayment penalties and cost savings such as fee waivers are not included in the comparison rate, but may affect borrowing costs. The comparative interest rate shown is for a secured loan with monthly principal and interest payments of $150,000 over 25 years.
** The initial monthly repayment numbers are estimates only, based on the advertised interest rate, loan amount, and entered term. Rates, fees and charges, and therefore the total cost of the loan, may vary depending on the loan amount, loan term and credit history. Actual repayments will depend on your individual circumstances and changes in interest rates.
^See information on the Mozo Experts Choice Home Loan Awards
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