How quickly things change.
Go back to March 2021 and you would have seen fixed interest rates on home loans falling. In fact, they were at some of their lowest points in years and many lenders, including major banks, were offering loans with rates starting with a “1”.
The situation could not be more different today, however, because if there has been a dominant theme in the mortgage market in recent weeks, it is the fixed increases in mortgage rates.
So which lenders have increased their fixed rates? What do the lowest and average home loan rates look like in the Mozo database? And how are the variable rates of mortgages doing? Find out below.
Recent evolution of fixed and variable rates
Since the start of February, 70% of lenders tracked in the Mozo database have raised fixed rates on at least one of their home loans, so it’s safe to say it’s hard to highlight a handful. of these rate increases. But here are some of the more notable changes:
- A prime example of the pace of change, ANZ actually raised fixed rates twice in the last month. The lowest fixed rate currently offered by the bank is 2.69% per annum (comparator rate of 2.97% per annum*) on a term of 1 year for owner-occupiers (
- Big brother bank ABC also raised its fixed rates twice in February, meaning its lowest fixed rate is now 2.79% per annum (annual comparison rate of 4.17%*) over a one-year term for homeowners (
- ING also made the decision to raise fixed rates twice in recent weeks. The lowest fixed rate offered by online banking is now 2.49% pa (comparison rate* 2.39% pa) over a period of 1 year for owner-occupiers (80% LVR).
While the majority of recent rate changes have been made to fixed rate loans, there have also been some notable reductions on variable rate home loans:
- Online lender loans.com.au reduced its Green Home Loan by 20 bp, meaning the lowest variable rate offered to owner occupiers (
- Town reduced the variable rate of its Basic Variable loan by an additional 10 basis points, meaning homeowners (
- Bank Australia reduced the variable rate of its Basic Home Loan offer for homeowners (
Average mortgage rates
So how have these recent changes impacted the average rates for home loans tracked in the Mozo database? While the average variable rate remained relatively stable month-over-month at 3.05%, the average fixed rates in our database continued their upward trajectory across all durations.
You can find more graphs focusing on average home loan rates and loan volumes by visiting our dedicated Australian home loan statistics page.
The lowest mortgage rates
What about some of the lowest mortgage rates? Well, the top variable rates have also remained relatively stable over the past month, but further rate hikes have changed the landscape among the fixed rate leaders in the Mozo database. Here is an overview:
Lowest Variable Rates — Mozo Database (March 1, 2022)^^
|Lender||To lend||Floating rate|
|Reduce home loans||super saver||1.77% per year (comparative rate of 1.86% per year*)|
|Good home loans||Well balanced||1.85% per year (comparative rate of 1.88% per year*)|
|Homeloans360||Owner variable||1.87% per year (comparative rate of 1.87% per year*)|
|Pacific Mortgage Group||standard-variable||1.87% per year (comparative rate of 1.87% per year*)|
|TIC Toc||Variable||1.89% per year (comparative rate of 1.90% per year*)|
Lowest and Average Fixed Rates — Mozo Database (March 1, 2022)^^
Although these are the lowest rates available in our database for borrowers with an LVR
RELATED: Slowing auction rates indicate scorching Australian property market may be cooling
Want to see how your own mortgage rate compares to other offers on the market? Check out some of the best fixed and variable deals in the table below, or head to the Mozo Home Loan Comparison Center to compare loans from a range of Australian lenders.
^^Interest rates are based on a homeowner making principal and interest payments on a $400,000 loan with an LVR of 80%.
* ATTENTION: This comparison rate only applies to the example or examples given. Different amounts and durations will result in different comparison rates. Costs such as withdrawal charges or prepayment charges, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed corresponds to a guaranteed loan with monthly principal and interest repayments of $150,000 over 25 years.
** Initial monthly repayment figures are estimates only, based on the advertised rate, loan amount and term entered. Rates, fees and charges, and therefore the total cost of the loan, may vary depending on your loan amount, loan term and your credit history. Actual repayments will depend on your personal circumstances and changes in interest rates.
^ See Mozo Experts Choice Home Loan Awards information
Mozo provides general product information. We do not take into account your personal goals, financial situation or needs and we do not recommend any particular product. You must make your own decision after reading the PDS or offering literature, or after seeking independent advice.
Although we pride ourselves on covering a wide range of products, we do not cover every product on the market. If you decide to request a product through our website, you will be dealing directly with the supplier of that product and not with Mozo.