It's more wait and see from the Reserve Bank of Australia (RBA), as the cash rate has been left at 4.35% for the second meeting in a row.
This pause follows three consecutive hikes in the first half of 2026, brought on by 'sticky' inflation, which remains above the RBA's target range, and economic uncertainty due to the war in the Middle East.
The RBA might be waiting to see what happens next, but there's no reason you have to. If you’ve been complacent with your home loan, you may be able to manufacture your own rate cut.
How can I engineer my own rate cut?
If you’ve been chipping away at your mortgage for a while you may find you're in a good position to negotiate with your lender. The mortgage market is a competitive one, and you may be surprised at the hoops your lender is willing to jump through to keep you as a customer. Especially since Canstar Research found that almost 50 lenders now offer a variable rate below 6% p.a.
“Competition in the home loan market is intensifying with lenders sharpening their rates as they battle it out for a bigger slice of the mortgage pie,” Canstar Data Insights Director, Sally Tindall, says.
“So far we’ve seen new customer variable rate cuts from 31 lenders since the start of June.
“If you haven’t reviewed your home loan in a few years, check what rate your bank is offering new customers. If it’s lower, use this as the push to ask for a rate review or look for a sharper rate elsewhere."
What are the lowest variable home loan rates on Canstar’s database?
If you’re considering your options, or you’re just curious about how mortgage rates are looking right now, here are the lowest variable rates on Canstar’s database at the time of writing:
Lender | Interest |
|---|---|
Pacific Mortgage Group | 5.69% |
Horizon Bank | 5.74% |
Unity Bank | 5.80% |
Greater Bank, Virgin Money, | 5.84% |
Unloan, RACQ Bank, | 5.89% |
Source: Canstar. Interest rates based on owner occupier loans. LVR and other requirements apply. Excludes green loans.
What does today’s decision mean for savings account and term deposit rates?
While today's decision does little for borrowers, savers will continue to reap the rewards of higher rates offered on savings accounts and term deposits.
Canstar data shows savings account interest rates are currently sitting at 14-year highs, with market leaders offering returns of up to 6.00% p.a. On the term deposit front, our database shows rates up to 5.55% p.a. If your savings aren't receiving the returns they deserve, it may be time to consider switching.
Have interest rates finally peaked?
A continued hold of the cash rate could be a signal that hikes have finally come to an end, with economists at Australia's big four banks agreeing the RBA’s next move will likely be a cut.
But borrowers shouldn’t count on relief just yet. Commbank is predicting an initial 25 basis point cut in May 2027, while NAB believes we’ll see easing in June. Westpac and ANZ predict a first round of cuts to come later that year, being August and September respectively. That said, each of the big four banks are predicting at least two rate cuts in 2027 and 2028, with NAB predicting three.
