Canstar’s latest Weekly Rate Wrap-up shows limited movement in variable home loan pricing, with two lenders cutting 13 owner-occupier and investor variable rates by an average of 0.13%.
Josh Sale (pictured), Canstar’s group manager of research, ratings and product data, said the cuts were modest but still helpful in the current rate environment.
“This week saw a small amount of activity in variable lending, with two out-of-cycle variable rate cuts from Auswide and MyState Bank," Sale said. "In total, two lenders reduced 13 owner-occupier and investor variable rates, with an average cut of 0.13 percentage points, not exactly a rate revolution, but borrowers will take a win wherever they can find one.”
The average owner occupier variable rate (P&I) is 5.92%.
The lowest variable rate across all LVRs remains 4.99%, offered by Geelong Bank. For first-home buyers, a 4.99% rate is also available from G&C Mutual Bank, Horizon Bank, and Unity Bank.
Movement in the fixed-rate market continued upward, with four lenders increasing 32 fixed rates for both owner-occupiers and investors by an average of 0.19%.
At the same time, two lenders cut six fixed rates by an average of 0.07%, reflecting what Sale describes as lenders fine-tuning their fixed-term offerings.
“Movement in the fixed-rate market continued, but in the opposite direction," he said. "Four lenders increased 32 fixed rates for both owner-occupiers and investors, with an average rise of 0.19 percentage points. Meanwhile, two lenders cut six fixed rates by an average of 0.07 percentage points, showing ongoing fine-tuning across fixed terms.”
Across Canstar’s database, 621 rates now sit below 5.25%, down from 628 last week, likely due to the upward shifts in fixed rates.
Compare last week's data with the previous week's here.
Geelong Bank’s 4.99% variable special stands out as a broader offering rather than a highly targeted promotion.
“This is notable given that the most recent 4.99% refinancing offer in the market had been a very limited, localised promotion,” Sale said.
Lower-rate options at the 4.99% level for first-home buyers may support activity in entry-level segments.
Attention now turns to Wednesday’s monthly CPI release. While no sharp surprises are anticipated, the new data series offers more frequent insight into inflation trends.
“While no major surprises are expected – and all four major banks remain aligned in forecasting no change to the RBA cash rate at the 9 December decision – this will be the first release in the new monthly data series, offering more timely insight into how inflation is tracking,” Sale said.
“It should provide a useful read-through for the market ahead of the RBA’s final decision for the year.”
Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
