March home loan snapshot: Fixed mortgage rates continue to soar

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How quickly things change.

Rewind to March 2021 and you’d have found that fixed home loan interest rates were on the downslope. In fact, they were at some of their lowest points in years and plenty of lenders, including the major banks, were offering loans with rates starting with a ‘1’.

The picture couldn’t be more different today though, because if there’s been one dominant theme in the home loan market in recent weeks, it’s been fixed home loan rate hikes.

So which lenders have raised their fixed rates? What do the lowest and average home loan rates in the Mozo database look like? And how are variable home loan rates faring? Find out below. 

Recent fixed and variable rate movements

Since the start of February 70% of lenders being tracked in the Mozo database have increased fixed rates on at least one of their home loans, so it’s safe to say that it’s difficult to highlight just a handful of these rate hikes. But here are some of the more notable changes:

  • A prime example of the pace of change, ANZ actually raised fixed rates twice over the last month. The lowest fixed rate now on offer with the bank is 2.69% p.a. (2.97% p.a. comparison rate*) on a 1-year term for owner occupiers (<80% LVR)
  • Fellow major bank CBA also lifted its fixed rates twice during February, meaning its lowest fixed rate is now 2.79% p.a. (4.17% p.a. comparison rate*) on a 1-year term for owner occupiers (<95% LVR)
  • ING also made the decision to hike fixed rates twice in recent weeks. The lowest fixed rate available with the online bank is now 2.49% p.a. (2.39% p.a. comparison rate*) on a 1-year term for owner occupiers (80% LVR).

While the majority of the recent rate changes have been made to fixed loans, there have been a few noteworthy cuts to variable rate home loans as well:

  • Online lender loans.com.au cut 20bp off its Green Home Loan, meaning the lowest variable rate on offer to owner occupiers (<80% LVR) with an environmentally-friendly home is 1.88% p.a. (2.30% p.a. comparison rate*)
  • Citi reduced the variable rate on its Basic Variable loan by a further 10bp, meaning owner occupiers (<80% LVR) can access rates as low as 1.99% p.a. (2.04% p.a. comparison rate*)
  • Bank Australia reduced the variable rate on its Basic Home Loan offer for owner occupiers (<80% LVR) by a substantial 31bp to 1.99% p.a. (2.03% p.a. comparison rate*)

Average home loan rates

So how have these recent changes impacted the average home loan rates being tracked in the Mozo database? While the average variable rate has remained relatively steady month-to-month at 3.05%, the average fixed rates in our database have continued on their upward trajectory across all terms.

You can find more graphs focusing on average home loan rates and lending volumes by visiting our dedicated Australian home loan statistics page.

Lowest home loan rates

What about some of the lowest mortgage rates around? Well, the very sharpest variable rates have also remained relatively stable over the past month, but further rate hikes have altered the landscape among the fixed rate leaders in the Mozo database. Here’s a look:

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

TermRate leaderFixed rate
1-yearUnity Bank1.84% p.a. (4.05% p.a. comparison rate*)
2-yearGreat Southern Bank1.89% p.a. (4.04% p.a. comparison rate*)
3-yearIllawarra Credit Union2.40% p.a. (3.82% p.a. comparison rate*)
4-yearHomestar2.89% p.a. (2.38% p.a. comparison rate*)
5-yearG&C Mutual Bank2.89% p.a. (2.90% p.a. comparison rate*)

While these are the lowest rates available in our database for borrowers with an <80% LVR, it’s worth pointing out that there are even lower rates on offer to borrowers with even lower LVRs - namely below the 70% and 60% LVR tiers.

RELATED: Slowing auction rates indicate red-hot Australian housing market might be cooling down

Interested in seeing how your own mortgage rate stacks up against other offers on the market? Check out some of the hot fixed and variable deals in the table below, or head over to the Mozo home loan comparison hub to compare loans from a range of Australian lenders.

^^Interest rates are based on an owner occupier making principal and interest repayments on a $400,000 loan with an 80% LVR.

Home loan comparisons on Mozo

Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can search our database of 473 home loans.
Last updated 19 June 2024 Important disclosures and comparison rate warning*
  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    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 online in minutes.

  • Basic Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.

  • Offset Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.39 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.

  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    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 online in minutes.

  • Discount Variable Home Loan

    • Owner Occupier
    • LVR<70%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    6.01 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    A low rate home loan for owner-occupiers packed with great features including unlimited extra repayments, free online redraw, no application or monthly admin fees. Rate will vary depending on LVR. Winner of a Mozo Experts Choice 2024 Low Cost Home Loan Award^

  • Variable Home Loan 90

    • Principal and Interest
    • LVR <90%
    Interest rate
    6.04 % p.a.
    Variable
    Comparison rate
    6.06 % p.a.
    Initial monthly repayment
    $3,011
    Go to site

    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 10% deposit required.

  • Fixed Rate Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <80%
    Interest rate
    6.09 % p.a.
    Fixed 3 years
    Comparison rate
    6.15 % p.a.
    Initial monthly repayment
    $3,027

    Additional repayments of up to $10K per fixed year. Interest rate discounts available. Waiver of $499 application fee when combined with an Orange Advantage Home Loan.

  • The Better Home Loan Special Offer

    • Owner Occupier
    • Principal & Interest
    • LVR<80%
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.14 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Enjoy a variable rate home loan with a bunch of features from Police Credit Union. Make extra repayments at any time without penalty. No monthly, annual or upfront fees. Free online redraw. Minimum 20% deposit. Qualifying criteria applies. Minimum loan amount is 200K. For new customers only. Mozo Experts Choice Home Lender Credit Union of the Year 2023.

  • Basic Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.

  • Mortgage Simplifier

    • LVR<80%
    • Owner Occupier
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.17 % p.a.
    Initial monthly repayment
    $3,043

    Get a competitive variable rate with ING’s Mortgage Simplifier. Free extra repayments, no monthly or annual fees. Freedom to make free extra repayments or redraws.

  • Offset Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.39 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.

  • Basic Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR<70%
    Interest rate
    6.25 % p.a.
    Fixed 3 years
    Comparison rate
    6.20 % p.a.
    Initial monthly repayment
    $3,079
    Go to site

    No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.

  • Fixed Rate

    • Owner Occupier
    • Principal & Interest
    • <80% LVR
    Interest rate
    6.59 % p.a.
    Fixed 3 years
    Comparison rate
    7.06 % p.a.
    Initial monthly repayment
    $3,190

    Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.

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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.

^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.