How Does Your Home Loan Compare?
No change to the cash rate again this month, but lenders’ mortgage rates have been moving more than a bunch of toddlers at a Wiggles concert. Here are the current averages so you can benchmark your home loan comparison and spot savings.
Lenders Are Busy Behind The Scenes
Mozo reports lenders have been active adjusting rates up and down.
- Variable Moves: NAB, CommBank and Bank of Queensland lifted some variable home loan rates.
- Fixed Cuts: Several lenders, including CommBank, ING and Macquarie, reduced selected fixed home loan rates.
Takeaway: A steady cash rate does not guarantee your mortgage is still competitive. A quick home loan comparison against market averages can reveal opportunities.
Fixed Rates Are A Mixed Bag
Indicative fixed averages (early September) for a $400,000 loan at 80% LVR:
- 1 Year: ~6.36%
- 2 Years: ~6.57%
- 3 Years: ~6.60%
- 5 Years: ~6.49%
Shorter fixes have eased at some lenders, while medium terms remain patchy. Your pricing will vary by loan-to-value ratio, product features, and borrower profile. We can model fixed vs variable vs split to see which suits your goals and cash flow.
When Could We See Rate Cuts
Banks disagree on the timing.
- Peak Likely In: ANZ and Westpac suggest the cash rate has peaked and may hold for a while. Westpac sees possible cuts by September 2024. AMP has flagged the potential for earlier easing.
- One More Hike View: NAB has expected one more increase before cuts by next Spring.
- RBA Guidance: The RBA maintains that future moves depend on inflation, the labour market and household spending.
What You Can Control: You do not need to wait for the RBA. You can make your own “rate cut” by boldloan refinancingbold or repricing if the net saving is positive.
Make A Smart Move Now
- Rate Check: Benchmark your current rate against market averages for owner occupied home loan rates.
- Reprice Or Refinance: We will compare a simple reprice with your bank against boldloan refinancingbold options, including costs and any break fees, to find real net savings.
- Structure For Cash Flow: Consider an offset account, redraw, or a split home loan to balance flexibility and certainty.
- Plan Your Next Step: If you are a first home buyer, we can map borrowing power, buffers and eligibility for the boldfirst home buyer loanbold pathways.
Ready To See How Your Loan Stacks Up
We’ll review your current rate, test reprice vs refinance scenarios, and shortlist lenders aligned to your goals in Perth, Adelaide, Melbourne, Sydney and Brisbane. Ask about our local support for home loans in Perth, Adelaide, Melbourne, Sydney and Brisbane.
FAQs
What is a “good” variable rate right now?
It depends on your LVR, product features and credit profile. With strong LVRs and clean profiles, some borrowers still secure owner occupied home loan rates that start with a “5”.
Should I fix my rate or stay variable?
It comes down to risk tolerance and time horizon. Shorter fixed home loan rates may offer certainty, while variable rates with an offset account can preserve flexibility. We can model both paths.
Is refinancing worth it if I am already on a discount?
Often yes. Markets move and new-to-bank pricing can outpace existing discounts. We will calculate the loan refinancing net benefit after fees.
Can I reduce repayments without switching lenders?
Possibly. A reprice request or a term reset can lower repayments. We will check the trade offs, including total interest over the life of the loan.
Will a lower LVR help my rate?
Usually yes. Dropping below key LVR tiers, such as 80% or 70%, can unlock sharper pricing. Extra repayments, a new valuation, or equity growth can sometimes achieve this.
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