March home loans snapshot: Economists expect the cash rate will peak in May

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The Reserve Bank of Australia has made it clear that interest rates will continue to rise this year, much to the dismay of Aussie borrowers.

Since the release of the December quarter inflation report, which showed inflation at 6.9% instead of the 6.5% the RBA was expecting, the central bank has been much more aggressive in its messaging around future rate hikes. 

References to the RBA not being on “a pre-set path” in its February statement were replaced with confirmations that more rate hikes were on the horizon, prompting many analysts to revise their cash rate forecasts.

Westpac economists now expect the cash rate will peak in May at 4.1%. They had previously pencilled in a 3.85% peak for May, meaning that borrowers might be subjected to another 50 basis point jump in a single month. 

There’s also the matter of all the fixed rate loans that are set to expire this year, which would plunge thousands of borrowers into a much higher interest rate environment than they’re accustomed to. 

As CommBank senior economist Belinda Allen recently put it, “there is more tightening to come for the Australian household sector irrespective of how much higher the RBA takes the cash rate.”

So what do both fixed rates and variable rates look like at the moment? Find out below.

Recent home loan rate movements

Variable rate home loans

  • ING’s Mortgage Simplifier rates are up 25bp but its Orange Advantage rates were increased by 20bp. 
  • Gateway Bank increased most variable rates by 25bp, however its Green Home Loan and Green Home Loan Plus under its Premium Package are both only up 15bp, now starting from 4.64% (4.93% comp rate*). 
  • Great Southern Bank added 25bp to most variable rates, but rates for owner occupiers with LVR’s less than 80% increased more. The Basic Variable is up 30bp to 5.04% (5.10% comp rate*) and the Offset Variable is up 35bp to 5.09% (5.19% comp rate*) for LVR’s up to 70% and 5.14% (5.20% comp rate*) for LVR’s up to 80%.

Fixed rate home loans

  • Bendigo Bank lifted its 1 year rates by 90bp, now from 5.84% (4.98% comp rate*) and its 2 year rates by 50bp, now from 5.74% (5.06% comp rate*). 
  • Macquarie’s 1 year rates are up 86-100bp, 2 year rates are up 44-64bp, 3 years are up 14-34bp, 4 years are up 24-36bp and 5 year rates are up 16-30bp. 
  • Yard lifted its 1 year rates by 10bp, but cut its 2 year options by 15bp, its 3 year rates by 25bp, and 5 year rates by 35bp.

Current lowest home loan rates

Interest rates have been trending upwards for some time now, but that doesn’t mean that there aren’t any worthwhile deals still on the market. Below are the lowest variable and fixed mortgage rates (P&I, LVR <80%) among lenders we track.

Lowest variable rates — Mozo database (March 1, 2023)^^

LenderLoanVariable rate
Reduced Home LoansCapitalizer Variable4.48% p.a. (4.48% p.a. comparison rate*)
Homeloans360Owner Variable Home Loan4.59% p.a. (4.59% p.a. comparison rate*)
Pacific Mortgage GroupStandard Variable Home Loan4.59% p.a. (4.59% p.a. comparison rate*)
Gateway BankGreen Plus Home Loan4.64% p.a. (4.93% p.a. comparison rate*)

Lowest fixed rates — Mozo database (March 1, 2023)^^

Term lengthLenderLoan
1-yearHomeloans360
Pacific Mortgage Group
4.99% p.a. (4.63% p.a. comparison rate*)
2-yearEasy Street5.19% p.a. (5.11% p.a. comparison rate*)
3-yearThe Capricornian4.99% p.a. (6.11% p.a. comparison rate*)
4-yearBendigo Bank5.49% p.a. (5.14% p.a. comparison rate*)
5-yearHSBC5.49% p.a. (5.61% p.a. comparison rate*)

The above are the lowest rates available in our database for borrowers with an <80% LVR. More competitive rates are available for borrowers with lower loan-to-value ratios.

Thinking about buying a property or refinancing your existing mortgage? Use Mozo’s home loan comparison table to examine lenders side-by-side, or use our refinance calculator to see how much you could save.

^^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.

Loan details

Rate change

Repayment change if rates go up

Home loan comparisons on Mozo - last updated 31 May 2024

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

    Fixed, Owner Occupier, Principal & Interest, LVR<70%

    interest rate
    comparison rate
    Initial monthly repayment
    6.25% p.a.
    fixed 3 years
    6.20% p.a.

    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.

    Compare
    Details
  • Variable Home Loan 90

    Principal and Interest, LVR <90%

    interest rate
    comparison rate
    Initial monthly repayment
    6.04% p.a. variable
    6.06% 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 10% deposit required.

    Compare
    Details
  • Discount Variable Home Loan

    Owner Occupier, LVR<70%

    interest rate
    comparison rate
    Initial monthly repayment
    5.99% p.a. variable
    6.01% p.a.

    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^

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    Details
  • The Better Home Loan Special Offer

    Owner Occupier, Principal & Interest, LVR<80%

    interest rate
    comparison rate
    Initial monthly repayment
    6.14% p.a. variable
    6.14% p.a.

    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.

    Compare
    Details
  • Discounted Home Value Loan

    Owner Occupier, Principal & Interest, LVR 70-80%

    interest rate
    comparison rate
    Initial monthly repayment
    6.09% p.a. variable
    6.09% p.a.

    Enjoy competitive rates for owner occupiers. Enjoy unlimited free extra repayments. Flexibility to redraw additional payments for free. No ongoing monthly service fee. Settlement fee waived on new borrowings from $50,000 (T&Cs apply).

    Compare
    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. 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

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