Bendigo, Citi and Macquarie are lowering the floating rate
Winter is finally here and so are the colder days and longer nights. For many of us, this means taking life slower and indulging in the joys of food and warmth that reign indoors.
However, there is no slowdown in mortgage rates! The latest edition of the Mozo Banking Roundup, released this morning, shows that lenders continue to cut and change both fixed and floating home loan rates at a steady pace.
So what has changed and how is your own rate stacking up? Find out more in our latest snapshot.
The competition with variable interest rates is intensifying
Earlier last month we reported the renewed spike in floating rate cuts after a long period of lenders’ attention largely on fixed rate cuts. This trend has continued over the past few weeks, with a number of other lenders announcing a reduction in the floating rate on home loans. Some of the highlights are:
- Athena Reduction of the AcceleRATES variable home loan for owner-occupiers by 10 to 20 basis points, which means that the interest rates for
- Bendigo Bank reduced its express home loan by 50 basis points, which means the lowest price offered to owner-occupiers (
- Citi 15 basis points deducted from his variable base loan, which means that the lowest interest rate for owner-occupiers (
- Homestar Star Essentials home loan cut by 10 basis points, meaning owner-occupiers (
- Macquarie reduced his basic home loan by 15 basis points to 2.49% (2.49% comparison rate *) for owner-occupiers (
- Tic: Toc Reduction of the variable interest rate for owner-occupiers (
As a result of the various cuts, the average floating rate on home loans ^^ in the Mozo database for owner-occupiers (3.26%) and investors (3.66%) making principal and interest repayments fell to the lowest levels since the tracking began in 2015.
Competition at the bottom of the market has also become tougher. There are currently 41 lenders in our database with a variable key interest rate below 2.50% for owner-occupiers (
Lowest Variable Rates – Mozo Database (June 1, 2021) ^^
The fixed interest rate division will be continued
In recent months there has been a growing gap between shorter (1-3 years) and longer (4-5 years) fixed rate home loans, with the former remaining relatively stable and the latter increasing.
According to the Mozo Roundup, that trend continued in May, with companies like Citi, Commonwealth Bank, Greater Bank, ING, Macquarie, NAB, Qudos Bank, Tic: Toc and Well Home Loans among lenders raising 4 or more years -Fixed interest in the last month.
ING was also one of the most notable lenders to cut its shorter interest rates. The bank has cut its 1-3 year fixed rate loan (with Orange Advantage) by 15-35 basis points, with the lowest owner-occupier interest rate (
What does the landscape look like at the sharpest end of the fixed income market? Here is a snapshot of the lowest fixed prices currently offered to owner-occupiers in the Mozo database, as well as our average values for owner-occupiers for terms of 1 to 5 years:
Lowest and Average Fixed Prices – Mozo Database (June 1, 2021) ^^
|term||Rate leader||Fixed rate||Average|
|1 year||bcu||1.67% (3.84% comparison rate *)||2.32%|
|2 years||bcu||1.78% (3.67% comparison rate *)||2.27%|
|3 years||Credit Union SA||1.79% (3.33% comparison rate *)||2.31%|
|4 years||BankVic||1.95% (2.72% comparison rate *)||2.49%|
|5 years||UBank||2.24% (2.33% comparison rate *)||2.70%|
The Reserve Bank’s board also announced its monthly monetary policy decision this afternoon, which can repeatedly turn the home loan rate market upside down, although it is widely believed that she will continue to hold her hand for the time being.
To stay up to date with this decision and the latest real estate reports, visit the Mozo home loan hub. If you want to compare loans, check out our home loan comparison tables for the latest interest rates.
^^ Interest rates are based on an owner making principal and interest repayments on a $ 400,000 loan with an LVR of 80%. For more information on average mortgage rates, please visit our dedicated Australian home loan statistics page.
^ See information about Mozo Experts Choice Home Loan Awards
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