November home loan snapshot: Further rate cuts are on the horizon

By Tom Watson · · 3 min read
Fact Checked
Advertiser disclosure
houses-in-queensland

For the first time since March all eyes and ears will be seriously tuned in to the Reserve Bank’s monetary policy decision tomorrow, as the possibility of a reduction to the official cash rate looms large.

In terms of home loan interest rates, an RBA cut would set the tone for November and the months beyond, with lenders likely to respond to any cut by pushing their own rates even lower.

“It’s really difficult to predict what the banks will do, but there’s a decent chance that they will pass on a rate reduction to variable rate customers,” said Mozo Banking Expert, Peter Marshall. 

"However, I think the picture is going to be a bit complicated in that the Reserve Bank is likely to do things to put pressure on fixed rates as well. So the banks may decide that if they’re cutting fixed rates, they will leave variable cuts for another time.”

That’s not to say that rate drops have come to a standstill. Home loan rates, as well as rates on other banking products such as savings accounts, term deposits and personal loans, have all been falling steadily for months.

In fact, according to the most recent Mozo Banking Roundup, there have been a number of significant changes to both variable and fixed home loan rates in the past few weeks.

Variable rates: Online lenders maintain supremacy

Despite a number of significant cuts in recent weeks, the average variable home loan rate for owner occupiers in the Mozo database actually ticked up fractionally month-on-month from 3.33% on October 1 to 3.34% today. Here are some of the standout movements for both owner occupiers and investors:

  • Tic:Toc dropped its Variable Home Loan rate by 20 basis points to just 2.19% (2.20% comparison rate*) - one of the lowest in our database.
  • Neobank 86 400 took 10 basis points off its Own Home Loan meaning the rate now sits at 2.64% (2.92% comparison rate*).
  • Bank of Melbourne, BankSA and St.George, who are all members of the Westpac group, cut their respective Basic Home Loan Special Offers by 10 basis points to 2.54% (2.65% comparison rate*).
  • ING reduced its Mortgage Simplifier rate for investors by a considerable 50 basis points, meaning it now rates among the lowest comparable offers in our database at 2.69% (2.72% comparison rate*).

Interested in how your own variable rate compares? Here’s a snapshot of the five lowest variable home loan rates^ in our database as of November 2, 2020:

Variable rateLenderLoan
2.17% (2.20% comparison rate*)Well Home LoansWell Balanced
2.19% (2.20% comparison rate*)Tic:TocVariable Home Loan
2.19% (2.22% comparison rate*)Reduce Home LoansSuper Saver Variable
2.19% (2.59% comparison rate*)firstmacBasic 80 (Broker Special)
2.25% (2.25% comparison rate*)Pacific Mortgage GroupStandard Variable Home Loan

Fixed rates: Citi sets new benchmark

Fixed rate home loans have also been in flux in recent weeks, though unlike variable rates, our averages have only dropped lower. You can see the specific figures in the table below.

In terms of individual cuts by lenders, there have been a couple of standout changes, including a few seriously low offers:

  • Citi has taken out the rate-leading position in our database after cutting the 5-year rate on its Fixed Rate Loan by 20 basis points to 2.39% (4.14% comparison rate*).
  • Sydney Mutual Bank and Endeavour Mutual Bank, which are both brands under the Australian Mutual Bank umbrella, launched new 2-year fixed rates of 1.99% (2.81% comparison rate*) for first home buyers.
  • Qudos Bank took 10 basis points off a number of terms on its Fixed Rate Home Loan for both owner occupiers and investors.
  • P&N Bank reduced the 1-year rate on its Fixed Rate Home Loan offer by a whopping 101 basis points to 1.99% (3.70% comparison rate*).

Check out the following table to see how these offers compare to the lowest fixed rates^ and average fixed rates in the Mozo database as of November 2, 2020:

TermRate LeaderFixed rateAverage
1-yearReduce Home Loans1.90% (2.43% comparison rate*)2.51%
2-yearIllawarra Credit Union1.99% (2.93% comparison rate*)2.48%
3-yearBank First1.99% (3.10% comparison rate*)2.52%
4-yearBankVic2.49% (2.88% comparison rate*)2.90%
5-yearCiti2.39% (2.97% comparison rate*)2.91%

Of course, mortgage rates may change dramatically in the coming days and weeks if the RBA does decide to cut rates. So to stay up to date, keep an eye on our respective Reserve Bank and home loan news hubs for all the latest decisions from banks and lenders.

 ^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 compare more home loans here.
Last updated 27 July 2024 Important disclosures and comparison rate warning*

Promoted

  • 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.

  • Neat Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.11 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.

  • Special Real Deal Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <80%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.13 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    Refinancers or first home buyers pay no monthly or annual fees. Up to $3,000 cashback when you complete your home loan application online. $2,000 cashback on loans ≥$250K; or $3,000 cashback on loans ≥$500K. LVR ≤80%. T&Cs and credit criteria apply.

  • Optimum Fixed Rate Home Loan

    • Owner Occupier
    • Principal & Interest
    Interest rate
    5.69 % p.a.
    Fixed 3 years
    Comparison rate
    6.34 % p.a.
    Initial monthly repayment
    $2,899
    Go to site

    Lock in a competitive interest rate and enjoy peace of mind for the fixed period. Available for owner occupied new and refinanced home loans with at least 20% deposit. Split option available as well as offset and redraw. Noapplication, ongoing or banking fees. Third Party fees may be applicable - payable within loan repayments. Extra repayments up to $20K per annum permitted. Apply online, 100% member owned credit union.

  • 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.

  • OMG Home Loan

    • Owner Occupier
    • Principal & Interest
    • <60% LVR
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    6.02 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    BCU Bank’s OMG owner occupied home loan offers a variety of great low rates depending on your deposit. Save with no ongoing annual fees. Access your extra payments when you need to through the redraw facility. Pre-approval valid for 3 months.

  • Flex Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    5.99 % p.a.
    Fixed 3 years
    Comparison rate
    6.34 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Competitive Fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.

  • Express Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <90%
    Interest rate
    6.01 % p.a.
    Variable
    Comparison rate
    6.14 % p.a.
    Initial monthly repayment
    $3,001
    Go to site

    Get online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.

  • Neat Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.11 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.

  • Special Real Deal Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <80%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.13 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    Refinancers or first home buyers pay no monthly or annual fees. Up to $3,000 cashback when you complete your home loan application online. $2,000 cashback on loans ≥$250K; or $3,000 cashback on loans ≥$500K. LVR ≤80%. T&Cs and credit criteria apply.

  • 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.

  • Flex Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.38 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Competitive variable rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 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.

  • 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 $10,000,000.

  • Offset Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR <70%
    Interest rate
    6.25 % p.a.
    Fixed 3 years
    Comparison rate
    6.42 % p.a.
    Initial monthly repayment
    $3,079
    Go to site

  • Fixed Rate

    • Owner Occupier
    • Principal & Interest
    • <80% LVR
    Interest rate
    6.54 % p.a.
    Fixed 2 years
    Comparison rate
    7.10 % p.a.
    Initial monthly repayment
    $3,174

    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.

image of houses

Need help with refinancing?

You might have questions that need personal answers. We’ve teamed up with the mortgage brokers at Lendi to get you the answers you need, and a home loan deal you deserve.

Learn more

* 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.

Compare home loans