October home loan snapshot: Interest rates continue to increase

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The Reserve Bank of Australia has lifted interest rates at a rapid pace this year, most recently by 0.25% at its October meeting. Economists at all four major banks expect the tightening cycle to continue as the central bank ramps up its efforts to tame inflation.

As in previous months, the majority of lenders quickly announced they would be passing on the RBA rate rise to their customers in full, meaning borrowers not on a fixed rate will be looking at another big jump in their monthly repayments.

The run-up in interest rates has seen potential buyers' borrowing power decrease, but property prices are also edging down. So far, however, the bulk of price drops has been on the more expensive end of the market.

So how are variable rates and fixed rates faring at the moment? Find out below.

Average fixed home loan rate now above the 5% mark

The ultra low fixed rates many had gotten accustomed to during the pandemic period have long disappeared. These days, the majority of fixed rates begin with a 4 or 5. 

At the time of writing, the average fixed rate for owner occupiers with an 80% LVR and a $400,000 loan are:

  • 1-year: 5.14% p.a.
  • 2-year: 5.61% p.a.
  • 3-year: 5.86% p.a.
  • 4-year: 6.13% p.a.
  • 5-year: 6.34% p.a.

Recent fixed and variable interest rate movements

We’ve seen increases across all home loan products in our database. In fact, over September, there were 1,791 increases in variable home loan products and 496 in the fixed home loan products we track.

Here are some notable changes from the last month.

Variable home loans

  • Bendigo Bank’s Complete Home Loan rates were increased by 30 bp for LVR’s below 80% and 50 bp for higher LVRs, and all rates for its Express Home Loan were increased by 30 basis points.
  • ubank rates increased by between 15 to 55 basis points depending on loan and borrower type. Its lowest variable rate is currently at 4.14% p.a. (4.16% p.a comparison rate*).
  • Commonwealth Bank increased rates on its Extra Home Loan by 40 basis points for most borrower types.

Fixed rate home loans

  • ANZ lifted its 1-year fixed rates by 50 basis points for owner occupiers and 30 basis points for
    investors.
  • Commonwealth Bank increased some of its 1-year fixed rates, but cut its 3 year fixed home loan option by 105 basis points.
  • St George’s 2-year fixed home loan rates are down by 15 basis points.

Lowest home loan rates

Even though interest rates are trending upwards, there are still a few variable and fixed rates below the 4% p.a. mark in the Mozo database. Below are the lowest variable and fixed mortgage rates (P&I, LVR <80%) among lenders we track.

Lowest variable rates — Mozo database (October 18, 2022)^^

LenderLoanVariable rate
Police Credit UnionThe Better Home Loan Special Offer (OO, P&I, LVR<80%)3.64% p.a. (3.64% p.a. comparison rate*)
RAMSValue Advantage (OO, P&I, LVR 70-80%) (Package)3.94% p.a. (4.10% p.a. comparison rate*)
Tic:TocVariable Home Loan (OO, P&I)4.03% p.a. (4.04% p.a. comparison rate*)
Firefighters Mutual BankYour Way Basic Variable Home Loan (OO, P&I)4.04% p.a. (4.08% p.a. comparison rate*)
Health Professionals BankYour Way Basic Variable Home Loan (OO, P&I)4.04% p.a. (4.08% p.a. comparison rate*)

Lowest fixed rates — Mozo database (October 18, 2022)^^

TermRate leaderFixed rate
1-yearPolice Credit Union4.19% p.a. (4.97% p.a. comparison rate*)
2-yearbcu4.89% p.a. (5.48% p.a. comparison rate*)
3-yearPolice Bank4.94% p.a. (4.76% p.a. comparison rate*)
4-yearbcu
4.99% p.a. (5.40% p.a. comparison rate*)
5-yearMacquarie5.45% p.a. (4.71% p.a. comparison rate*)

These are the lowest rates available in our database for borrowers with an <80% LVR. More competitive rates are available for borrowers with LVRs below 70% and 60%.

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

Loan details

Rate change

Repayment change if rates go up

^^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.

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 472 home loans.
Last updated 13 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.

  • 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.

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.