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The Present Home Loan Market At A Glance

A snapshot of the interest rates on Australian home loans at the moment and how they’ve moved.

Home loan rate snapshots

In the tables below you’ll find the average, minimum, and maximum advertised interest rates on Canstar’s database for various types of home loans over the specified period.

Please note that only home loans available for $400,000 with principal and interest repayments were taken into account.

Variable Rate Owner Occupier Home Loans

Table: Residential Home Loan Market – Snapshot of the current market (27/02/2018 to 05/03/2018)
Basic Variable Standard Variable
Average 4.20 4.44%
Min 3.54% 3.49%
Max 5.49% 5.73%
Source: www.canstar.com.au

The search results do not include all home loan providers, and may not include all features relevant to you. Loans based on loan amount of $400,000 and available for principal and interest repayments.

Fixed Rate Owner Occupier

Table: Residential Home Loan Market – Snapshot of the current market (27/02/2018 to 05/03/2018)
  1-Year Fixed 2-Year Fixed 3-Year Fixed 4-Year Fixed 5-Year Fixed
Average 4.04% 4.03% 4.10% 4.45% 4.52%
Min 3.49% 3.65% 3.69% 3.69% 3.99%
Max 5.14% 4.95% 5.05% 5.05% 5.14%
Source: www.canstar.com.au

The search results do not include all home loan providers, and may not include all features relevant to you. Loans based on loan amount of $400,000 and available for principal and interest repayments.

Investors – Variable Rate

Table: Investment Home Loan Market – Snapshot of the current market (27/02/2018 to 05/03/2018)
Stat Basic Variable Standard Variable
Average 4.67% 4.90%
Min 3.79% 3.74%
Max 5.81% 6.38%
Source: www.canstar.com.au

The search results do not include all home loan providers, and may not include all features relevant to you. Loans based on loan amount of $400,000 and available for principal and interest repayments.

Investors – Fixed Rate

Table: Investment Home Loan Market – Snapshot of the current market (27/02/2018 to 05/03/2018)
Stat 1 Year Fixed 2 Year Fixed 3 Year Fixed 4 Year Fixed 5 Year Fixed
Average 4.39% 4.36% 4.44% 4.76% 4.82%
Min 3.89% 3.74% 3.89% 4.24% 4.24%
Max 5.65% 5.57% 5.52% 5.50% 5.63%
Source: www.canstar.com.au

The search results do not include all home loan providers, and may not include all features relevant to you. Loans based on loan amount of $400,000 and available for principal and interest repayments.

Rate movements last month

Despite no changes in the Reserve Bank of Australia’s (RBA) cash rate since August 2016, that hasn’t stopped a large number of banks from moving interest rates on home loans over the past few months.

In February alone, seven lenders on Canstar’s database cut standard variable interest rates for owner occupiers paying principal and interest. Only two lenders raised rates on this type of loan this month. Of these rate adjustments, the average movement was a decrease of six basis points (-0.06%).

Standard variable investment home loans remained pretty steady, with rate cuts from four lenders and rate hikes from five. Of these rate adjustments, the average movement was an increase of seven basis points (0.07%). This doesn’t include the many rate movements Canstar has seen on interest only loans.

At the time of writing, the average interest rate for standard variable owner occupier home loans on Canstar’s database is 4.44% p.a.*. In the last week of July 2016, before the RBA last cut interest rates, this average was 4.59% p.a.*. So despite a 25 basis point cash rate cut and no RBA moves since, the average is only 15 basis points lower than before the rate cut.

*Based on residential loans available for $400,000, 80% LVR and principal & interest repayments.

While it’s difficult to pick the perfect time to fix a mortgage, there are some great value fixed rate deals on Canstar’s database at the moment that could be worth considering. Read our tips about choosing between fixed vs variable home loans here.

For further information on fixed rate home loan products available for refinancing, the below comparison table has been formulated with direct links to the providers website. These have been sorted by our star ratings (highest to lowest). Please note that this table features products that are based on a loan amount of $350,000 for a property in NSW with a LVR of 80%.

3 Year fixed rate home loans

But for mortgage holders who aren’t in the mood to fix rates, there are still many variable loans advertising rates under 4% p.a..

For further information on variable home loan products available for refinancing, the below comparison table has been formulated with direct links to the providers website. These have been sorted by our star ratings (highest to lowest). Please note that this table features products that are based on a loan amount of $600,000 for a property in NSW with a LVR of 80%.

Variable home loans 

Compare Home Loans

 

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