April home loan snapshot: CBA, NAB and Westpac move on fixed rates

australian-terrace-houses

It’s been just over a year since the Reserve Bank announced its emergency interest rate cut on March 19, 2020, a move which, in addition to other measures taken by the RBA, helped catalyse the steep decline in fixed home loan interest rates we’ve witnessed since.

According to the latest Mozo Banking Roundup, a number of lenders are still adjusting their rates down, particularly in the shorter-term fixed categories, but signs have also started to emerge in the last few weeks that longer-term fixed rates may be starting to turn.

So which lenders have been shifting rates of late and what does an average home loan rate look like at present? Read on to find out.

Fixed home loan rates

Fixed home loan rates have been tracking in one direction over the past 12 months - down.

But the last few weeks have been a little different, with a number of rate cuts and increases from various banks and lenders. As a result, the fixed rate averages in the Mozo database have remained relatively stable compared to this time last month (see table below for exact rates). 

Zooming in, some of the more notable changes from the past month include:

  • Online lender Homestar cut the 2-year rate on its Star Classic Fixed Home Loan by 14 basis points to 1.74% (2.23% comparison rate) for owner occupiers, making it the lowest rate in our database for that term.
  • Commonwealth Bank reduced rates for all borrowers on select 1, 2 and 3-year fixed terms, while it increased its 4-year fixed rate by 20bp for owner occupiers. Its lowest rate is now 1.94% (3.93% comparison rate*) on the Fixed Rate Home Loan (Wealth Package) for a 2-year term.
  • NAB cut 10-15bp off 2-year fixed rates for owner occupiers and investors, meaning its lowest fixed rate is now 1.89% (3.97% comparison rate*) with the Tailored Home Loan (Choice Package).
  • Westpac reduced both 2 and 3-year fixed rates by 20bp for owner occupiers and investors. The 2-year fixed rate on its Fixed Options Home Loan (Premier Advantage Package) is now 1.89% (3.46% comparison rate*).

How do these rates compare? To put them into perspective, here’s a snapshot of the lowest fixed rate^^ offers in the Mozo database as well as our fixed rate averages for owner occupiers as of April 1, 2021:

TermRate leaderFixed rateAverage
1-yearGreater Bank1.69% (3.49% comparison rate*)2.34%
2-yearHomestar1.74% (2.23% comparison rate*)2.30%
3-yearUBank1.75% (2.22% comparison rate*)2.34%
4-yearBank of Melbourne & St.George 1.94% (3.21% comparison rate*)2.37%
5-yearGreater Bank2.19% (3.10% comparison rate*)2.63%

Variable home loan rates

As has been the norm, lenders have been much less active on the variable home loan rate front. Compared to the start of March, the average variable rate for owner occupiers in the Mozo database has actually ticked up slightly, moving from 3.29% to 3.30%.

Some of the more significant changes from lenders in recent weeks include:

  • Westpac Group members Bank of Melbourne, BankSA and St.George all cut 5bp off their respective Basic Home Loans (Special Offer) meaning the lowest rate available to owner occupiers is now 2.49% (2.51% comparison rate*). Investor rates were cut by 20bp, bringing the lowest rate down to 2.79% (2.81% comparison rate*).
  • Suncorp cut rates by 10bp for owner occupiers on two of its variable rate home loans, so the lowest variable rate now available is 2.44% (2.45% comparison rate*) with the Back to Basics Special offer.
  • Online lender Well Home Loans reduced rates for investors by 12bp on its Well Balanced loan. The new rate of 2.24% (2.30% comparison rate) is now the lowest variable rate in our database for investors. 

Though they remain largely unchanged compared to last month, here’s a snapshot of the five lowest variable rates^^ available to owner occupiers in the Mozo database as of April 1, 2021:

Variable rateLenderLoan
1.99% (2.05% comparison rate*)Reduce Home LoansSuper Saver Variable
2.09% (2.09% comparison rate*)Pacific Mortgage GroupStandard Variable
2.14% (2.19% comparison rate*)HomestarStar Essentials
2.17% (2.17% comparison rate*)FreedomLendVariable Home Loan
2.17% (2.20% comparison rate*)Well Home LoansWell Balanced 

To keep track of the latest rate movements, including any increases to longer-term fixed rates we might start to see play out in April and beyond, check out the dedicated Mozo home loan news hub. 

Or if you’re looking to see how your own mortgage offer stacks up, head on over to the Mozo home loan comparison tables to compare rates, fees and features from a range of lenders.

^^Based on an owner occupier making principal and interest repayments on a $400,000 loan with an 80% LVR. For more information on average mortgage rates, check out our Australian home loan statistics page.

Compare fixed home loans - rates updated daily

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure.
  • placeholder
    Mozo Experts Choice 2021
    UHomeLoan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.85% p.a.
    fixed 3 years
    2.13% p.a.
    Go to site
    Details
  • placeholder
    Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR<70%

    interest rate
    comparison rate
    Initial monthly repayment
    2.09% p.a.
    fixed 3 years
    2.32% p.a.
    Go to site
    Details
  • placeholder
    Special Fixed Rate Home Loan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.89% p.a.
    fixed 2 years
    3.67% p.a.
    Go to site
    Details
  • placeholder
    Fixed Rate Home Loan

    Owner Occupier, Principal & Interest, LVR <80%

    interest rate
    comparison rate
    Initial monthly repayment
    2.09% p.a.
    fixed 3 years
    2.87% p.a.
    Go to site
    Details
  • placeholder
    Well Balanced Fixed

    Owner Occupier, Principal & Interest, LVR <80%

    interest rate
    comparison rate
    Initial monthly repayment
    1.95% p.a.
    fixed 2 years
    2.02% p.a.
    Go to site
    Details
  • placeholder
    Fixed Home Loan Special Offer

    Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a.
    fixed 3 years
    2.83% p.a.
    Go to site
    Details

* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, 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 is for a secured loan with monthly principal and interest repayments for $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 credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.