June home loan snapshot: Variable rates on their way up

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)^^

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

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.