Invest
Report: The lenders upping their mortgage rates
New analysis shows Australians with fixed rate terms on their mortgages could be hit with bit rate rises if they don’t negotiate early.
Report: The lenders upping their mortgage rates
New analysis shows Australians with fixed rate terms on their mortgages could be hit with bit rate rises if they don’t negotiate early.
Comparison site Mozo analysed 262 fixed rate loans in Australia and found that borrowers are being “stung by high revert rates”.
This typically occurs once the borrower’s contract ends with the lender.
Borrowers often assume the same conditions will roll over, but the analysis by Mozo noted examples of increases from 4.02 per cent per annum to 4.45 per cent per annum.
Those with a two-year fixed rate home loans pay on average 52 basis points higher in interest upon the end of their contract. This is a rise of an average rate of 3.93 per cent per annum to 4.45 per cent per annum.
For those with three-year fixed contracts, they experienced rises of 46 basis points, increasing from an average rate of 3.99 per cent per annum to 4.45 per cent per annum.
Mozo found that the biggest rate increases (more than 1.5 per cent per annum) were made by lenders such as Suncorp, Bank of Queensland, HSBC, RAMS, and Arab Bank Australia.
AMP, Well Home Loans, Kogan Money, SCU, and State Custodians decreased their rates after a five-year fixed term by up to 1.10 per cent per annum, though Mozo noted that their rates were “relatively high to begin with”.
Mortgage Choice’s latest national home loan approval data showed that demand for fixed rate home loans fell over the month of February, accounting for 22.8 per cent of loans, down from 23.8 per cent in January and below the six-month average of 23.4 per cent.
Of the 262 fixed rate loans that the comparison site analysed, 40 one-year fixed rate loans, 52 two-year fixed rate loans, and 40 three-year fixed rate loans reverted to a rate at least 1 percentage point higher than the rate borrowers were paying.
Adding 1 percentage point to the interest rate, from 4 per cent per annum to 5 per cent per annum, on a $400,000 mortgage over 30 years would add $247 to a monthly repayment.
RELATED ARTICLES
Property
Twice the demand: the case study behind Melbourne’s first‑home buyer surge
Melbourne has quietly engineered one of Australia’s most consequential housing turnarounds, with first‑home buyer demand running at roughly double the national pace and four of the top five buyer ...Read more
Property
First‑home buyers now anchor Australia’s mortgage growth — but the risk maths is changing
Great Southern Bank’s revelation that nearly one in three of its new mortgages went to first‑home buyers is not an outlier. It is the leading edge of a broader market realignment powered by government ...Read more
Property
Home guarantee scheme shake-up challenges Australia’s housing market players
From 1 October 2025, the expanded Home Guarantee Scheme (HGS) materially widens what first-home buyers can purchase and where. By sharply lifting price caps and relaxing eligibility settings, the ...Read more
Property
GSB’s first‑home buyer play: turning policy tailwinds into market share
Great Southern Bank’s latest results show that nearly one in three of its new mortgages now go to first‑home buyers—evidence of a fast‑moving market reshaped by government guarantees, easing rates and ...Read more
Property
Why investors are fleeing and renters are scrambling in Australia's housing maze
Australia’s rental market is tightening even as individual landlords sell down. New data points to a multi‑year investor retreat tied to higher holding costs and regulatory uncertainty, while prices ...Read more
Property
Australia's 5% deposit guarantee: Unlocking gains while balancing risks in the market share race
Can a bigger government guarantee fix housing access without fuelling prices? Australia is about to find out. The Albanese government’s expanded 5% deposit pathway aims to help 70,000 buyers, remove ...Read more
Property
Australia's bold move the 5% deposit scheme shaking up the housing market
Can a government guarantee replace lenders mortgage insurance without inflating prices or risk? Canberra’s accelerated 5% deposit scheme is a bold demand-side nudge in a supply‑constrained marketRead more
Property
When rates drop but stress sticks: exploring Australia's mortgage arrears dilemma
Headline numbers suggest arrears ease as rates come down. The reality in Australia is messier: broad measures dipped into mid‑2025, yet severe delinquencies and non‑bank portfolios remain under ...Read more
Property
Twice the demand: the case study behind Melbourne’s first‑home buyer surge
Melbourne has quietly engineered one of Australia’s most consequential housing turnarounds, with first‑home buyer demand running at roughly double the national pace and four of the top five buyer ...Read more
Property
First‑home buyers now anchor Australia’s mortgage growth — but the risk maths is changing
Great Southern Bank’s revelation that nearly one in three of its new mortgages went to first‑home buyers is not an outlier. It is the leading edge of a broader market realignment powered by government ...Read more
Property
Home guarantee scheme shake-up challenges Australia’s housing market players
From 1 October 2025, the expanded Home Guarantee Scheme (HGS) materially widens what first-home buyers can purchase and where. By sharply lifting price caps and relaxing eligibility settings, the ...Read more
Property
GSB’s first‑home buyer play: turning policy tailwinds into market share
Great Southern Bank’s latest results show that nearly one in three of its new mortgages now go to first‑home buyers—evidence of a fast‑moving market reshaped by government guarantees, easing rates and ...Read more
Property
Why investors are fleeing and renters are scrambling in Australia's housing maze
Australia’s rental market is tightening even as individual landlords sell down. New data points to a multi‑year investor retreat tied to higher holding costs and regulatory uncertainty, while prices ...Read more
Property
Australia's 5% deposit guarantee: Unlocking gains while balancing risks in the market share race
Can a bigger government guarantee fix housing access without fuelling prices? Australia is about to find out. The Albanese government’s expanded 5% deposit pathway aims to help 70,000 buyers, remove ...Read more
Property
Australia's bold move the 5% deposit scheme shaking up the housing market
Can a government guarantee replace lenders mortgage insurance without inflating prices or risk? Canberra’s accelerated 5% deposit scheme is a bold demand-side nudge in a supply‑constrained marketRead more
Property
When rates drop but stress sticks: exploring Australia's mortgage arrears dilemma
Headline numbers suggest arrears ease as rates come down. The reality in Australia is messier: broad measures dipped into mid‑2025, yet severe delinquencies and non‑bank portfolios remain under ...Read more
