Borrow
Home loan rates tumble despite RBA’s inaction
Ahead of the RBA’s announcement of Australia’s official cash rate, new research has found that the major four banks are reducing the cost of credit to consumers.
Home loan rates tumble despite RBA’s inaction
Ahead of the RBA’s announcement of Australia’s official cash rate, new research has found that the major four banks are reducing the cost of credit to consumers.
Data released by Rate City shows the big four banks, which together hold nearly three in four home loans, have shaved their lowest variable rate by an average of 0.25 per cent in the last six months for new customers, despite the RBA holding rates.
In total, the research showed that since 19 March, 90 lenders have reduced their variable interest rate on at least one product they were offering to consumers.
Rate City’s research director, Sally Tindall, said a record number of people have refinanced in the last six months to take advantage of the low rates on offer; however, there are still hundreds of thousands of home owners overpaying on their mortgage.
“The average existing owner-occupier is on a rate of 3.22 per cent. That’s 0.65 per cent higher than what the big four banks are on average offering new customers for a basic variable loan,” she said.
While pointing out the big four have reduced their rates, Ms Tindall said mortgage-holders that shop around can get a better rate.
“There are 12 lenders now offering home loans below 2 per cent, and the list is growing by the week,” she said.
“At a time when every dollar counts, a rate cut of 0.15 per cent would save the average mortgage holder $33 a month.”
RELATED ARTICLES
About the author
About the author
Loans
First-home buyer grants are blowing up prices and risk while savvy investors make their move
A new white paper argues first‑home buyer incentives are being capitalised into higher prices and larger loans—echoing long‑running warnings from the Reserve Bank and market economistsRead more
Loans
Investor refinancing hits record highs: inside Australia’s race for mobile mortgage capital
Refinancing by property investors has surged to record levels in Australia as borrowers chase sharper rates and lenders fight to defend margins. Average loan sizes have pushed to new highs even as ...Read more
Loans
Australia’s mortgage stress is back: the 2026 playbook for banks, brokers and boards
Mortgage stress has re‑accelerated after the Reserve Bank’s February move, with fresh data indicating 24.5% of owner‑occupier borrowers are under pressure. Victoria, Queensland and Tasmania are ...Read more
Loans
First-home buyers are back: what the 26% surge means for lenders, builders and boards
A record fourth-quarter rise in first-home buyer activity has reset the mortgage market’s centre of gravity. With aggregator data showing a 26% jump in first-home buyer lodgements in Q4 2025 and ...Read more
Loans
Viking’s entry rewrites Australia’s mortgage aggregation playbook: win on software, not just scale
A new residential aggregator entering Australia after a decade-plus hiatus is more than a competitive curiosity—it’s a test of whether software, data and compliance-by-design can overcome entrenched ...Read more
Loans
Australia’s credit pivot: Mortgage enquiries hit a three‑year peak as households lean on plastic — what lenders and fintechs must do next
Australian home loan interest has rebounded even as households lean harder on cards and personal loans — a classic late‑cycle signal that demands sharper risk, pricing and AI executionRead more
Loans
Trust is the new yield: Why brokers win when credibility compounds
In a market where products look interchangeable, credibility has become the most defensible asset in mortgage broking. With broker channel share hitting record highs and AI reshaping client ...Read more
Loans
Mortgage Relief Window: How Australia’s Lenders Are Rewiring Risk and Growth at a Three‑Year Lull
Australia’s mortgage stress has eased to its lowest level since early 2023, creating a rare—likely brief—window for lenders, brokers and fintechs to reset risk and rebuild growth. This case study ...Read more
Loans
First-home buyer grants are blowing up prices and risk while savvy investors make their move
A new white paper argues first‑home buyer incentives are being capitalised into higher prices and larger loans—echoing long‑running warnings from the Reserve Bank and market economistsRead more
Loans
Investor refinancing hits record highs: inside Australia’s race for mobile mortgage capital
Refinancing by property investors has surged to record levels in Australia as borrowers chase sharper rates and lenders fight to defend margins. Average loan sizes have pushed to new highs even as ...Read more
Loans
Australia’s mortgage stress is back: the 2026 playbook for banks, brokers and boards
Mortgage stress has re‑accelerated after the Reserve Bank’s February move, with fresh data indicating 24.5% of owner‑occupier borrowers are under pressure. Victoria, Queensland and Tasmania are ...Read more
Loans
First-home buyers are back: what the 26% surge means for lenders, builders and boards
A record fourth-quarter rise in first-home buyer activity has reset the mortgage market’s centre of gravity. With aggregator data showing a 26% jump in first-home buyer lodgements in Q4 2025 and ...Read more
Loans
Viking’s entry rewrites Australia’s mortgage aggregation playbook: win on software, not just scale
A new residential aggregator entering Australia after a decade-plus hiatus is more than a competitive curiosity—it’s a test of whether software, data and compliance-by-design can overcome entrenched ...Read more
Loans
Australia’s credit pivot: Mortgage enquiries hit a three‑year peak as households lean on plastic — what lenders and fintechs must do next
Australian home loan interest has rebounded even as households lean harder on cards and personal loans — a classic late‑cycle signal that demands sharper risk, pricing and AI executionRead more
Loans
Trust is the new yield: Why brokers win when credibility compounds
In a market where products look interchangeable, credibility has become the most defensible asset in mortgage broking. With broker channel share hitting record highs and AI reshaping client ...Read more
Loans
Mortgage Relief Window: How Australia’s Lenders Are Rewiring Risk and Growth at a Three‑Year Lull
Australia’s mortgage stress has eased to its lowest level since early 2023, creating a rare—likely brief—window for lenders, brokers and fintechs to reset risk and rebuild growth. This case study ...Read more
