RateCity expects to see similar patterns over the next few weeks
The Australian mortgage market saw significant activity last week, with RateCity.com.au reporting rate adjustments from various lenders in its latest weekly interest rates wrap-up.
Abal Bank offered the lowest variable rate at 5.75%, while Australian Mutual Bank provided competitive fixed rates starting at 5.63% and 5.48% for two- and three-year terms, respectively.
The major banks – CBA, Westpac, NAB, and ANZ – presented higher rates, with CBA’s basic variable rate set at 6.59% for one year.
Last week was also a busy one for Bendigo and Adelaide Bank as a credit provider, according to RateCity.com.au research director Sally Tindall (pictured), with small but notable rate changes across several brands.
“Adelaide Bank and Tiimely both made a full suite of cuts to their fixed rate loans across all terms,” she said. “Adelaide Bank cut by up to 0.20 percentage points, while Tiimely cut by up to 0.56 percentage points.
“Qantas Money cut its fixed rates by up to 0.55 percentage points and tweaked its new customer variable rates – with a hike to its owner-occupier advertised rates and a cut to its investor variable rates.”
Tindall said that in terms of lowest advertised variable rates, the majority of lenders are holding firm on their new customer offers, with RateCity data showing there are still around 30 lenders offering at least one variable rate under 6%.
“We expect to see similar patterns over the next few weeks,” Tindall said. “While the recently released RBA minutes indicated the board considered a hike at their February meeting, recent Labour Force data showing an increase in unemployment, combined with the low quarterly inflation, largely suggests that while a hike may be considered, there’s little evidence at this stage one will eventuate.”
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