Lenders have begun slashing their home loan fixed rates

By Maria Gil · · 2 min read
Fact Checked
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Homeowners might finally have a chance to catch their breath. Not only did cash rate hikes momentarily halt this month, but several lenders have slashed their fixed rate home loans. 

Recently, Mozo’s database recorded significant fixed rate cuts from the Bank of Queensland, ME Bank, Macquarie and Tic:Toc. In fact that there were a total of 262 fixed rate cuts in April so far!

Bank of Queensland’s Discounted Fixed Rate for Owner Occupiers (P&I)

Fixed ratePrevious rateNew rate
2-year5.94% p.a.5.54% p.a.
3-year5.84% p.a.5.44% p.a.
4-year5.99% p.a.5.69% p.a.
5-year5.99% p.a.5.64% p.a.

Bank of Queensland’s Fixed Rate for Owner Occupiers (P&I)

Fixed ratePrevious rateNew rate
2-year6.29% p.a.5.89% p.a.
3-year6.19% p.a.5.79% p.a.
4-year6.36% p.a.6.04% p.a.
5-year6.34% p.a6.04% p.a.

ME’s Flexible Home Loan for Owner Occupiers (P&I)

Fixed ratePrevious rateNew rate
2-year6.04% p.a.5.64% p.a.
3-year5.99% p.a.5.54% p.a.
4-year6.14% p.a.5.79% p.a.
5-year6.39% p.a.5.79% p.a.

Tic:Toc Fixed Home Loan for Owner Occupiers (P&I)

Fixed RatePrecious rateNew rate
1-year5.49% p.a.5.29% p.a.
2-year5.59% p.a.5.29% p.a.
3-year5.44% p.a.5.29% p.a.

Macquarie Basic Home Loan for Owner Occupiers (P&I)

Fixed RatePrecious rateNew rate
1-year5.85% p.a.5.55% p.a.
2-year5.55% p.a.5.45% p.a.

Mozo's banking expert Peter Marshall says. "The RBA held off lifting the cash rate last month, for the first time in almost a year. This has given lenders some confidence that we are either at or near the end of the rate hike cycle, and that rates should start coming down again within the next year."

It’s still too early to tell if more lenders will continue to cut fixed rates, but there’s a glimmer of hope for homeowners experiencing mortgage stress. At this point in time, most of the other lenders in our Mozo database are holding firm with current rates. 

So the next few months will be important for many borrowers. Corelogic says that while a pause doesn’t necessarily mean interest rate hikes are done, it is likely that the ‘tightening cycle’ is close to topping out. Most forecasts have interest rates either at a peak or almost at a peak with one more hike in the wings, as per Corelogic.

For more information on the latest home loan news, check out Mozo’s news and advice page. Alternatively, compare fixed rate home loans below.

Home loan comparisons on Mozo - last updated 9 December 2023

Search promoted home loans below or do a full Mozo database search . Advertiser disclosure
  • Home Fixed Rate

    Owner Occupier, Principal & Interest, Refinance Only

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    Initial monthly repayment
    6.40% p.a.
    fixed 4 years
    6.24% p.a.

    Enjoy the security of a competitive fixed interest rate from Up. No application, monthly, annual, redraw, or discharge fees to pay. Up to 50 free offset accounts available. Up home loans are only available to owner-occupiers buying or refinancing in major Australian cities. Up is 100% owned by Bendigo Bank. New joiners get $10 by signing up to the app using code UPHOMEMOZO. (T&Cs apply). Mozo Experts Choice award winner.

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  • Basic Home Loan

    Fixed, Investment, Principal & Interest, LVR 70-80%

    interest rate
    comparison rate
    Initial monthly repayment
    6.79% p.a.
    fixed 3 years
    6.64% p.a.

    Lock in repayments from 1 to 5 years. Competitive rate tiers depending on your LVR. No application or annual fee. Fast, secure online application.

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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. You can change the loan amount and term in the input boxes at the top of this table. 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.

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