November home loan snapshot: CBA and NAB lower variable rates

Are we about to see a widespread shift in home loan interest rates? Speculation is certainly starting to grow that the Reserve Bank may be forced to bring forward an increase to the official cash rate ahead of its 2024 forecast.

We’ll learn more about any changes to the Reserve Bank’s thinking when it meets at tomorrow’s November board meeting, but in the meantime, it's worth reflecting on where the home loan rate market stands right now.

Recent variable and fixed rate movements

After months of quiet, the big four banks seem to have started playing catch up on variable rates in recent weeks, with both the Commonwealth Bank and NAB cutting rates on basic home loan offers. They weren't alone though, as there were enough variable rate cuts from other lenders to nudge the Mozo database average down by two basis points to a new low of 3.12%. Here are some of the major changes:

• CBA took 74bp off of its Extra Home Loan, meaning the new rate for owner occupiers (70-80% LVR) is 2.39% p.a. (2.40% p.a. comparison rate*)

• Gateway Bank cut the rate on its Green Plus Home Loan (Premium Package) by 45bp, meaning the new rate for owner occupiers (<80% LVR) is 1.89% (2.24% comparison rate*)

• ING reduced rates on its Mortgage Simplifier loan by 25bp, meaning the new rate for owner occupiers (<80% LVR) is 2.24% p.a. (2.27% p.a. comparison rate*)

• NAB took 40bp off of its Base Variable Rate Home, meaning the new rate for owner occupiers (<80% LVR) is 2.29% p.a. (2.33% p.a. comparison rate*)

The major banks were also among the more significant movers and shakers on the fixed rate front. Following a few recent cuts, all four big banks are now offering a 1-year fixed rate home loan with a headline rate below 2.00%. More broadly though, 1 and 2-year fixed rates continue to remain relatively stable, while 3, 4 and 5-year fixed rates are still trending higher. Here are a few of the major fixed rate changes:

• ANZ cut the 1-year rate on its Fixed Rate (Breakfree Package) by 5bp for owner occupiers (<80% LVR) to 1.99% p.a. (3.33% p.a. comparison rate*)

• CBA reduced the 1-year rate on its Fixed Rate Home Loan (Wealth Package) by 10bp for owner occupiers (<80% LVR) to 1.99% p.a. (4.10% p.a. comparison rate*) 

• NAB decreased the 1-year rate on its Tailored Home Loan (Choice Package) by 10bp for owner occupiers (<80% LVR) to 1.99% p.a. (4.15% p.a. comparison rate*)

Lowest home loan rates

Those are a few of the latest changes, but how do they compare to some of the sharpest rates around? 

While we don’t track every home loan in the market, we do track over 500 home loans from more than 80 lenders in the Mozo database. So here’s a snapshot of some of the lowest home loan rates currently in the Mozo database which are available to owner occupiers (P&I repayments, <80% LVR). 

Lowest variable rates — Mozo database (November 1, 2021)^^

Lowest and average fixed rates — November database (November 1, 2021)^^

It’s also worth noting that there are even lower rates available to borrowers with lower loan-to-value ratios (LVRs) - namely below the 70% and 60% LVR thresholds.

RELATED: Multiple lenders are offering $3,000 cashback to refinance your home loan

Ready to snag a competitive rate on your mortgage? Check out some of the great fixed and variable offers in the table below, or head on offer to the Mozo home loan comparison hub to compare even more loans. 

^^Interest rates are based on an owner occupier making principal and interest repayments on a $400,000 loan with an 80% LVR. For more information on average mortgage rates, check out our dedicated Australian home loan statistics page.