February home loan snapshot: Athena and ANZ lead variable rate drops

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While plenty of Australians have been hitting the beach and putting their feet up for a much deserved rest over the past month, there’s been no pause to rate changes in the mortgage market.

So which lenders have recently altered their rates, what are some of the lowest home loan rates around at present, and could we be in for a hike from the Reserve Bank rate later in the year? Let’s get into it.

Recent variable and fixed rate changes

Generally, home loan rates have continued on the divergent course we’ve witnessed over the past few months: lenders have been cutting variable rates and they’ve been lifting fixed rates. Here are some of the more significant rate changes from recent weeks:

  • NAB subsidiary 86 400 trimmed the variable rate on its Neat Home Loan (owner occupier, 70-80% LVR) by five basis points to 2.29% p.a. (2.30% p.a. comparison rate*).
  • Online lender Athena took 10-30bp off of its AcceleRATES Variable Home Loan. The lowest variable rate available to owner occupiers (<60% LVR) is now 1.89% p.a. (1.89% p.a. comparison rate*).
  • ANZ cut 20bp off of its Simplicity PLUS Special Offer loan, meaning the lowest variable rate for owner occupiers (<80% LVR) is now 2.29% p.a. (2.33% p.a. comparison rate*) - on par with NAB and Westpac.
  • On the fixed rate front, former Mozo database rate leader Greater Bank lifted fixed rates across all terms. The lowest rate on offer with its Discount Great Rate Loan for owner occupiers (LVR<90%) is still a competitive 1.89% p.a. (2.17% p.a. comparison rate*) for a 1-year term though.
  • Westpac also increased a number of fixed rates. The lowest fixed rate offered by the major bank for owner occupiers (<80% LVR) is now 2.49% p.a. (3.64% p.a. comparison rate) for a 1-year term on the Fixed Options Home Loan (Premier Advantage Package).

Lowest home loan rates

Those are just a selection of recent changes, but how do they compare to some of the lowest interest rates available at present? Here’s a look at the lowest variable and fixed mortgage rates available from lenders being tracked in our database for owner occupiers with an LVR <80%.

Lowest variable rates — Mozo database (February 1, 2022)^^

LenderLoanVariable rate
Reduce Home LoansSuper Saver1.77% p.a. (1.86% p.a. comparison rate*)
Well Home LoansWell Balanced1.85% p.a. (1.88% p.a. comparison rate*)
Homeloans360Owner Variable1.87% p.a. (1.87% p.a. comparison rate*)
Pacific Mortgage GroupStandard Variable1.87% p.a. (1.87% p.a. comparison rate*)
Tic:TocVariable1.89% p.a. (1.90% p.a. comparison rate*)

Lowest fixed rates — Mozo database (February 1, 2022)^^

TermRate leaderFixed rate
1-yearUBank1.79% p.a. (2.18% p.a. comparison rate*)
2-yearQudos Bank1.99% p.a. (2.41% p.a. comparison rate*)
3-yearBank of us2.19% p.a. (2.45% p.a. comparison rate*)
4-yearBankVic2.49% p.a. (3.49% p.a. comparison rate*)
5-yearBankVic2.59% p.a. (3.43% p.a. comparison rate*)

Will there be an RBA rate rise in 2022? 

We know that fixed rates are on the rise, but could variable rates start to head in the direction before too long?

Given that variable rates are at some of the lowest levels we’ve seen in years, it’s almost inevitable that they’ll start ticking up at some point, but the question of when could depend on any moves from the Reserve Bank.

The RBA has previously indicated that a lift to the cash rate before 2024 would be unlikely, but following its November 2021 meeting it indicated that an earlier move could be a possibility. 

Some banks, including CBA and Westpac, are now speculating that the Reserve Bank could move on rates as soon as later this year, but Mozo Banking Expert, Peter Marshall, thinks the RBA will be more cautious.

“While things are different in the US - where they have an extended period of increased inflation - we haven’t seen that here in Australia yet. So the RBA will not be looking to move until they have a high level of confidence that inflationary pressure is going to stick around, and it will take some more quarters for that to happen.”

With the Reserve Bank Board meeting for the first time in 2022 this afternoon, we may find out more about its thinking on interest rates sooner rather than later. And you can find coverage on that decision on our dedicated Reserve Bank page. 

RELATED: Median house prices in Australian capital cities surpass $1 million

Thinking about purchasing a property or refinancing your existing mortgage in 2022? With loans from a range of lenders side-by-side, make Mozo’s handy comparison tables the first place you compare home loans.

^^Interest rates are 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 dedicated Australian home loan statistics page.

Home loan comparison - February 2022 - last updated 13 August 2022

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* 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

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