Property prices jump, mortgage rates drop: what it means for Aussie borrowers
Australia’s property market appears to be bouncing back as median property values have gone up across most capital cities. Plus, home loan lenders have continued to slash rates - so what does this mean for Aussie borrowers?
CoreLogic’s latest Hedonic Home Value Index which showed that housing values jumped up by 1.1% nationally from last month.
CoreLogic’s Head of Research Tim Lawless says that based on the current run rate growth, he predicts that prices will hike up even more and believes the national index will probably hit another high over the next two months.
“Structural factors may also be at play, including a rise in borrowing capacity following changes to serviceability assessment from APRA in July 2019, and the dominance of owner occupier buyers (rather than investors) through the recovery phase to date.”
“With lenders favouring ‘high quality’ borrowers, buyers with a large deposit and low level of debt relative to their incomes, are likely to be those who receive the lowest mortgage rates - another factor that could be supporting demand at the more expensive end of the market.”
Sydney and Melbourne’s property markets saw the biggest jump not only month on month but year on year as well - with Sydney hiking up by 10.9% from last year and Melbourne by 10.7%. And notably, Sydney’s house median value has crept above $1 million again, sitting at $1,001,357.
Rundown of the current Australian Capital City property market
| City | Month Change | Year Change | Total Dwellings Median Value | House Median Value | Unit Median Value |
| Sydney | +1.7% | +10.9% | $872,934 | $1,001,357 | $763,962 |
|---|---|---|---|---|---|
| Melbourne | +1.2% | +10.7% | $689,088 | $809,719 | $583,294 |
| Brisbane | +0.6% | +1.9% | $503,265 | $551,766 | $384,396 |
| Adelaide | +0.1% | +0.4% | $439,453 | $477,129 | $325,243 |
| Perth | +0.3% | -4.0% | $442,691 | $458,582 | $357,593 |
| Hobart | +0.8% | +5.0% | $488,968 | $520,201 | $398, 394 |
| Darwin | -1.4% | -7.8% | $386,345 | $469,526 | $271,847 |
| Canberra | +0.8% | +4.1% | $631,862 | $704,865 | $445,354 |
Why could now be a good time to take out a home loan?
With house prices only expected to rise and mortgage rates at an all time low, for Aussies looking to take out a home loan - if you were already thinking about jumping into the property market now may be a good time to do it.
While the Reserve Bank of Australia (RBA) didn’t cut its official cash rate in February experts are predicting they will cut tomorrow, thus 13 mortgage lenders in Mozo’s database made cuts to existing loans or introduced new competitive home loan products in the last month.
Currently, the average variable rate amongst lenders is 3.67%, compared to 4.34% this time last year. Plus, with a potential RBA cut coming either this month or in the next few months, rates could drop even lower across more lenders.
RELATED ARTICLE: Australia’s cheapest home loans unveiled
If you are itching to get your hands on a property and can’t wait to lock in a killer home loan, check out some mortgage options below or jump over to our home loan comparison tool.
Home loan comparisons on Mozo
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Fixed Home Loan
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Go to site- Interest rate
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5.54
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Fixed 2 years
- Comparison rate
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5.93
%
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- Initial monthly repayment
-
$2,852
Competitive fixed rate on up to a 30 year loan term. No application fees to pay. Additional repayments up to $20,000 per year without penalty. Free online redraw. Optional 100% offset feature ($10/month) 10% minimum deposit. Fees & charges apply, Australian Credit Licence 237879 is held by Bendigo and Adelaide Bank Limited, the credit provider.
- Interest rate
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5.54
%
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Fixed 2 years
- Comparison rate
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5.93
%
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- Upfront fees
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$495
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$0.00
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$325.00
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yes- optional with $10/month
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5.99
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- Comparison rate
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5.90
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$2,995
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.
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5.99
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5.90
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$0
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$0.00
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no
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Fixed Home Loan
- Owner Occupier
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Go to site- Interest rate
-
5.54
%
p.a.
Fixed 2 years
- Comparison rate
-
5.93
%
p.a.
- Initial monthly repayment
-
$2,852
Competitive fixed rate on up to a 30 year loan term. No application fees to pay. Additional repayments up to $20,000 per year without penalty. Free online redraw. Optional 100% offset feature ($10/month) 10% minimum deposit. Fees & charges apply, Australian Credit Licence 237879 is held by Bendigo and Adelaide Bank Limited, the credit provider.
- Interest rate
-
5.54
%
p.a.
Fixed 2 years
- Comparison rate
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5.93
%
p.a.
- Upfront fees
-
$495
- Ongoing fees
-
$0.00
- Discharge fee
-
$325.00
- Extra repayments
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- Redraw facility
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yes - free
- Offset account
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yes- optional with $10/month
- Maximum loan to value ratio
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Fixed Rate Home Loan
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5.59
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6.27
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$2,867
Get repayment certainty with HSBC’s low 2 Year Fixed Rate Home Loan. Make up to $10,000 of extra repayments a year. The option to split your home loan between fixed and variable. Plus, score $3,288 cashback when you refinance an existing home loan of $250,000. Must apply by 28 February 2023 and settle by 30 April 2023.
- Interest rate
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5.59
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- Comparison rate
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6.27
%
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- Upfront fees
-
$0
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-
$390.00 yearly
- Discharge fee
-
$300.00
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yes - free up to $10,000 p.a.
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no
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no
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2-Year Discounted - Simple Home Loan Variable
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5.54
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5.90
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$2,988
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5.54
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5.90
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-
$0
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$0.00
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$175.00
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yes - free
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Variable Home Loan
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5.98
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6.02
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$2,991
Competitive variable rate on up to a 30 year loan term. No application fees to pay. Unlimited additional repayments. Free online redraw. Optional 100% offset feature ($10/month) 10% minimum deposit. Fees & charges apply, Australian Credit Licence 237879 is held by Bendigo and Adelaide Bank Limited, the credit provider.
- Interest rate
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5.98
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6.02
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- Upfront fees
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$495
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$0.00
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$325.00
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Unloan Variable
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5.99
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Variable
- Comparison rate
-
5.90
%
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- Initial monthly repayment
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$2,995
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.
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5.99
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5.90
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$0
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5.99
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5.99
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- Initial monthly repayment
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$2,995
Enjoy competitive rates for owner occupiers. Enjoy unlimited free extra repayments. Flexibility to redraw additional payments for free. No ongoing monthly service fee. Receive $3,288 cashback when you refinance an existing home loan. Minimum loan amount of $250,000, settle within 120 days from applying.
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5.99
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-
5.99
%
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- Upfront fees
-
$0
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-
$0.00
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-
$300.00
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yes - free
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-
yes - free
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-
no
- Maximum loan to value ratio
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- $50,000
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Simple Home Loan Variable
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Go to site- Interest rate
-
5.99
%
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Variable
- Comparison rate
-
5.99
%
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- Initial monthly repayment
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$2,995
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5.99
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5.99
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$0
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$0.00
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$175.00
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no
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Fixed Rate
- Owner Occupier
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- <80% LVR
- Interest rate
-
5.99
%
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Fixed 3 years
- Comparison rate
-
6.89
%
p.a.
- Initial monthly repayment
-
$2,995
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.
- Interest rate
-
5.99
%
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Fixed 3 years
- Comparison rate
-
6.89
%
p.a.
- Upfront fees
-
$160
- Ongoing fees
-
$0.00
- Discharge fee
-
$160.00
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yes - free up to to lesser of 5% of original fixed loan amount, or $5,000 each year
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-
no
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-
Optional - $10 per month - 1 year fixed term only
- Maximum loan to value ratio
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- $3,000 cashback for eligible First Home Buyers borrowing $250k+, $2,000 cashback when you refinance loans of $250k+, <80% LVR, settle within 180 days for first home buyers, 120 days for refinances. Excludes refinances from ANZ, ANZ Plus and Suncorp.
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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.
- Interest rate
-
6.14
%
p.a.
Variable
- Comparison rate
-
6.17
%
p.a.
- Upfront fees
-
$350
- Ongoing fees
-
$0.00
- Discharge fee
-
$250.00
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Offset account
-
no
- Maximum loan to value ratio
- 80.00%
- Minimum borrowing amount
- $150,000
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- $2,000,000
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-
Elevate
- Owner Occupier
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- <80% LVR
- Interest rate
-
6.18
%
p.a.
Variable
- Comparison rate
-
6.18
%
p.a.
- Initial monthly repayment
-
$3,056
Get competitive rates on loan terms of 5 to 30 years with the Aussie Elevate Home Loan. Structure your loan with up to five splits. Make additional repayments (T&Cs apply). Offset accounts available. Unlimited redraw using your online banking account. Choose from weekly, fortnightly or monthly payments For loan amounts from $10,000 to $5 million.
- Interest rate
-
6.18
%
p.a.
Variable
- Comparison rate
-
6.18
%
p.a.
- Upfront fees
-
$498
- Ongoing fees
-
$0.00
- Discharge fee
-
$325.00
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Offset account
-
Optional extra - $10 per month
- Maximum loan to value ratio
- 80.00%
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- $10,000
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Read reviews and learn more about Aussie home loans
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Your selected home loans
* 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.
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