June home loan snapshot: Variable rates on their way up

Father and son moving into new home.

It finally happened. The Reserve Bank of Australia (RBA) lifted the cash rate from 0.10% to 0.35% last month, and the majority of banks have spent the weeks since scrambling to revise their variable rates. 

Of the 94 lenders we track, 74 have passed on the full 0.25% rate hike to their customers, 10 lenders have raised rates only partially, and the remaining 10 have not yet made their plans public. 

On the fixed rate front, we continue to see lenders revising rates upwards. There are now no longer any loans in our database with rates below 2% p.a. after the last holdout — Unity Bank — increased its 1-year fixed rate offer to 2.49% p.a. (4.33% p.a. comparison rate*).

So who else has raised rates? What are the lowest and average home loan rates in our database? What do variable rates look like after the RBA hike? Find out below.

Recent fixed and variable rate movements

Since the RBA lifted the cash rate on 3 May, 74 of the 94 lenders in the Mozo database have raised their variable rates in line with the RBA. Some other notable changes from the last month include.

  • Commbank launched a new digital loan called unloan for borrowers looking to refinance.
  • NAB subsidiary ubank underwent a major rebrand following the absorption of neobank 86 400. The merger will see ubank taking over 86 400’s range of products, including bank accounts, savings accounts, and home loans. 
  • Tic:Toc raised its variable rates by 20 basis points, now starting from 2.09% p.a. (2.10% p.a. comparison rate*).

Looking at fixed rates, some notable changes include:

  • NAB increased all its fixed rate options. 1-year terms are up 60 bp to 3.59% p.a. (4.51% p.a. comparison rate*). 
  • Bankwest fixed rates jumped sharply, with 1-year rates up 120 bp, 2-year rates up 150 bp, 3-year rates up 80 bp, and 4 and 5-year rates both up 70 bp. 
  • Westpac’s 1-year rates went up by 80 bp to 3.59% p.a. (3.87% p.a. comparison rate*). 

Lowest home loan rates

Rates might be increasing across the board, but there are still lenders offering home loan rates below the 3% p.a. mark.  Here’s a look at the lowest variable and fixed mortgage rates (P&I, LVR <80%) among lenders we track.

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

LenderLoanVariable rate
Reduce Home LoansSuper Saver1.99% p.a. (2.06% p.a. comparison rate*)
Homeloans360Owner Variable2.04% p.a. (2.04% p.a. comparison rate*)
Pacific Mortgage GroupStandard Variable2.04% p.a. (2.04% p.a. comparison rate*)
Tic:TocVariable Home Loan 2.09% p.a. (2.10% p.a. comparison rate*)
Reduce Home LoansEconomizer Variable2.09% p.a. (2.11% p.a. comparison rate*)

Lowest and average fixed rates — Mozo database (June 1, 2022)^^

TermRate leaderFixed rate
1-yearUnity Bank2.49% p.a. (4.33% p.a. comparison rate*)
2-yearOrange Credit Union3.19% p.a. (3.21% p.a. comparison rate*)
3-yearBankWAW3.55% p.a. (4.18% p.a. comparison rate*)
4-yearBCU4.19% p.a. (4.10% p.a. comparison rate*)
5-yearAustralian Military Bank4.34% p.a. (3.80% p.a. comparison rate*)

Remember that these are the lowest rates available in our database for borrowers with an <80% LVR. More competitive rates tend to be available for borrowers with LVRs below 70% and 60%.

Are you thinking about a property or looking to refinance your existing mortgage? Use Mozo’s handy home loan comparison table to examine lenders side-by-side.

^^Interest rates are based on an owner occupier making principal and interest repayments on a $400,000 loan with an 80% LVR. Check out our dedicated Australian home loan statistics page for more information on average mortgage rates.

Home loan comparisons on Mozo - last updated 13 August 2022

Search promoted home loans below or do a full Mozo database search . Advertiser disclosure
  • Variable Home Loan 70

    interest rate
    comparison rate
    Initial monthly repayment
    3.10% p.a. variable
    3.12% p.a.

    Affordable home loan rate for buyers or refinancers.. No monthly or ongoing fees. Option to add an offset for 0.10%. Access to savings with unlimited redraws available. Minimum 30% deposit required.

    Details
  • Unloan Variable

    Owner Occupier, Refinance Only

    interest rate
    comparison rate
    Initial monthly repayment
    3.14% p.a. variable
    3.06% p.a.

    For refinancers only. Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply in as little as 10 minutes.

    Details
  • PAYG Home Loan

    Owner Occupier, Principal & Interest, LVR<80%

    interest rate
    comparison rate
    Initial monthly repayment
    3.29% p.a. variable
    3.33% p.a.

    Low variable rate. Ideal for new home buyers or refinancers. Unlimited additional repayments. Unlimited free redraw. Application completely online. Optional 100% offset can be added for $120 p.a.. 20% deposit required.

    Details
  • Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    3.79% p.a. variable
    3.79% p.a.

    Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required.

    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.