Variable rates continue to fall, with 27 lenders cutting at least one variable rate last month.

This despite the fact that the RBA has maintained the cash rate for almost 12 months and no movement is expected until at least 2024.

Rate changes in the past month: lenders who have moved at least one rate

Lenders who cut Lenders who have increased
Variable 27 1
1 year fixed 7 1
2 years fixed 6 0
3 years fixed 3 ten
4 years fixed 0 9
5 years fixed 2 9

Source: RateCity.com.au. Data is from September 4 to October 3, 2021 inclusive.

Analysis from RateCity.com.au shows that while the majority of rates below 2% are fixed, there are now 48 variable mortgage rates also below 2%.

Number of mortgage rates below 2%

Category Number of rates below 2% Current lowest rate
Variable 48 1.77%
1 year fixed 47 1.59%
2 years fixed 79 1.59%
3 years fixed 31 1.79%
4 years fixed 0 2.15%
5 years fixed 0 2.27%

Source: RateCity.com.au.

RateCity.com.au’s research director Sally Tindall said the majority of the cuts last month were for variable rates.

“Banks largely left fixed rates alone last month, taking a ‘wait and see’ approach to determine the impact Australia’s COVID stimulus package will have on the economy,” she said. declared.

“However, that didn’t stop many lenders from taking the scissors for their more malleable variable rates, which were well behind fixed rates.

“When the RBA cut the spot rate last November, there were only six variable rates below 2%. There are now 48, including five investor rates.

“After the last two spot rate cuts, variable rates barely budged as most lenders chose to lower fixed rates instead. If anything, these cuts are late, ”she said.

As the value of new home loans edged down in August, refinancing hit a record high of $ 17.78 billion.

“Locked-in Australians may not have been able to make it to stores in the past two months, but they took the opportunity to do their home loan shopping,” she said.

“This rebirth of refinancing is great news. Every month tens of thousands of households are now saving more on their mortgages, but collectively this also puts pressure on lenders to keep their rates competitive.

“In recent months, nearly $ 50 billion in residential mortgages have been up for grabs. It might seem like a gigantic pot, but with over 120 lenders in the market and hordes of itchy borrowers, the competition is intense, ”she said.

Lowest rates from RateCity.com.au database

Lender Rate
1 year fixed Big Bank, Bank of Us

1.59%

2 years fixed Big Bank

1.59%

3 years fixed Community First Credit Union

1.79%

4 years fixed Illawarra Credit Union

2.15%

5 years fixed Freedom loan

2.27%

Variable Reduce home loans

1.77%

Source: RateCity.com.au Note: Rates apply to owner-occupiers who pay principal and interest. Certain LVR requirements apply. Greater Bank is only available for properties in NSW, Qld and ACT. Bank of Us is only available to residents of Tasmania.

The Big Four Banks’ Lowest Rates for Homeowner Home Loans

ABC Westpac * NAB ANZ
1 year fixed

2.09%

1.99%

2.09%

2.04%

2 years fixed

1.99%

1.89%

1.99%

1.94%

3 years fixed

2.19%

1.98%

2.18%

2.04%

4 years fixed

2.29%

2.49%

2.49%

2.49%

5 years fixed

2.99%

2.79%

2.79%

2.69%

Variable

2.69%

1.99% for 2 years then 2.49%

2.69%

2.72%

Source: RateCity.com.au. * Note: Westpac rates are a loan to value ratio of up to 70%.


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