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.

Compare home loans - March 2022 - last updated 6 July 2022

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

    2 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    2.60% p.a.variable for 24 months and then 3.00% p.a. variable
    2.96% p.a.

    New super low introductory rate home loan for two years. Min 20% deposit. No monthly or ongoing fees. Fast settlement times. Mozo award-winning online lender. Friendly, local Australian based team.

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  • Unloan Variable

    Owner Occupier, Refinance Only

    interest rate
    comparison rate
    Initial monthly repayment
    2.64% p.a. variable
    2.56% 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.

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  • Mozo Expert Choice Badge
    Variable Rate Home Loan

    Owner Occupier, Principal & Interest, LVR <80%

    interest rate
    comparison rate
    Initial monthly repayment
    2.59% p.a. variable
    2.49% p.a.

    $5000 refinance cashback. Owner-occupier refinancers only living in NSW/VIC/SA metro and inner regional areas. Receive up to an additional 0.15% off your rate as you pay off the loan. Receive bonus payments up to $2,500. T&Cs apply. Mozo Experts Choice Award winner for 2022^.

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  • Basic Home Loan

    Owner Occupier, LVR<60%, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    2.84% p.a. variable
    2.84% p.a.

    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. Apply online in as little as 15 minutes.

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  • Variable Home Loan

    Owner Occupier, Principal & Interest, LVR <60%

    interest rate
    comparison rate
    Initial monthly repayment
    2.64% p.a. variable
    2.66% p.a.

    Purchase and Refinance. Yard’s low-rate variable special home loan is packed with all features – unlimited additional repayments, free redraw, optional 100% offset account. Enjoy a simple online application.

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  • Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    2.64% p.a. variable
    2.64% 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.

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  • Special Real Deal Home Loan

    Owner Occupier, Principal & Interest, LVR <80%

    interest rate
    comparison rate
    Initial monthly repayment
    2.87% p.a. variable
    2.91% p.a.

    No application or service fees. Flexibility to choose your repayment schedule ( weekly, fortnightly or monthly). Refinance and get up to $3,000 cashback. $2,000 cashback on loans ≥$250K; bonus $1,000 cashback on loans ≥$500K. LVR ≤90%. Limited time offers extended. T&Cs apply.

    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

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