September home loan snapshot: Spring property blooms, along with interest rates

Little girl climbs out of home loan interest rate hole

The last half of winter was all quiet on the Reserve Bank front. But home loan interest rates? Astonishingly busy. But despite all the activity, from hikes to cuts, the average variable interest rate for owner-occupied home loans stayed at 6.60% p.a. in August. 

Heading into September, the RBA interest rate decision once more left the official cash rate on hold at 4.10%. With every passing month, it becomes more and more likely we’ve hit the interest rate peak, though Mozo banking expert Peter Marshall says not to get too comfortable yet. 

“It’s probably not going to be until the first quarter of next year that we can actually feel comfortable that the rate cycle is over,” explains Marshall.

“It will take a bit longer to ensure that the key economic indicators are going in the right direction. But once that happens, people can stop worrying about increasing prices on their mortgages.” 

With inflation gradually returning to target, the odds become more and more likely that the next official interest rate change will be a cut – most likely in mid to late 2024. Great news for variable rate borrowers; less good for variable rate savers. 

In the meantime, the spring property season has kicked off, so there are more properties hitting the market. If you’re considering becoming a home buyer, let’s break down what’s happening in home loans as the flowers start to bloom. 

Head to our RBA rate tracker for more information on how RBA decisions affect home loans.

Fixed rates dance in place as lenders hike and cut around the peak

Real estate agent selling home buyers a house

Unfortunately, plenty of fixed home loans ticked up in August, but plenty more slashed their fixed rates, including major lenders like Bendigo Bank, ING, CommBank, and Macquarie. Since fixed rates are predictive, lenders reducing rates signals that they believe official interest rates have peaked. 

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

  • 1-year: 6.36% p.a. 
  • 2-year: 6.57% p.a. 
  • 3-year: 6.60% p.a. 
  • 4-year: 6.50% p.a. 
  • 5-year: 6.49% p.a.

Recent home loan rate movements

Mortgage broker hands keys to home buyers at settlement

Large and small home loan lenders alike lifted variable interest rates in August. Most of the adjustments were less than 15 basis points, but even 5 bp means extra dollars to mortgage repayments. Out-of-cycle rate hikes are quite annoying, especially when accompanied by a flurry of cuts to savings accounts and term deposits, but not every lender is guilty of this sin. 

Here are some of the highlights from August. 

  • Bank Australia raised its Premium Home Loan Package rates by 9 bp. 
  • Bank of Queensland and subsidiary brands ME and Virgin Money lifted rates between 5 and 40 bp. 
  • CommBank inched up one of its lowest home loan offers by 5 bp. NAB did the same thing to its lowest offer but increased by 15 bp. Even Unloan, known for its unique rate discount, hiked by 15 bp. 
  • Tic:Toc broke from the pack by cutting its headline rate by 5 bp. 

Current lowest home loan rates

Woman compare home loans on her tablet

Here are the lowest variable and fixed mortgage rates (P&I, LVR <80%) among lenders we track.

Lowest variable rates — Mozo database (5 September 2023)^^

Variable rate
Pacific Mortgage Group
Standard Variable Home Loan
5.54 % p.a. (5.54% p.a. comparison rate*)
Hume Bank
liteBlue Rate Variableel Home Loan
5.59% p.a. (5.60% p.a. comparison rate*)
Firefighters Mutual Bank
Your Way Basic Variable Home Loan
5.64% p.a. (5.70% p.a. comparison rate*)
Health Professionals Bank
Your Way Basic Variable Home Loan
5.64% p.a. (5.70% p.a. comparison rate*)

Lowest and average fixed rates — Mozo database (5 September 2023)^^

Rate leader
Fixed rate
The Capricornian
5.45% p.a. (6.87% p.a. comparison rate*)
Macquarie Credit Union
5.49% p.a. (6.18% p.a. comparison rate*)
Australian Mutual Bank
5.48% p.a. (6.10% p.a. comparison rate*)
Qudos Bank
5.84% p.a. (5.94% p.a. comparison rate*)
5.54% p.a. (6.20% p.a. comparison rate*)

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

If you’re considering buying 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.

Compare home loans in the table below.

Compare home loans - last updated 9 December 2023

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

    Owner Occupier, Principal & Interest, Refinance Only

    interest rate
    comparison rate
    Initial monthly repayment
    6.15% p.a. variable
    6.15% p.a.

    Enjoy a competitive variable interest rate from Up. No application, monthly, annual, redraw, or discharge fees to pay. Up to 50 free offset accounts available. Up home loans are only available to owner-occupiers buying or refinancing in major Australian cities. Up is 100% owned by Bendigo Bank. New joiners get $10 by signing up to the app using code UPHOMEMOZO. (T&Cs apply) Mozo Experts Choice award winner.

  • Mozo Expert Choice Badge
    Variable Rate Home Loan Special Offer

    Package, Owner Occupier, Principal & Interest, LVR<80%

    interest rate
    comparison rate
    Initial monthly repayment
    6.14% p.a. variable
    6.51% p.a.

    Package benefits across Home Loans, Visa Credit Card, Personal Loans and Term Deposits. No package fee for the first year. No application, settlement or redraw fees to pay. Quick and easy application. Free CoreLogic RP Data property reports. *Terms, conditions and lending criteria apply.

  • Mortgage Simplifier

    LVR<80%, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    6.14% p.a. variable
    6.43% p.a.

    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. Winner of Australia’s Best Essential Bank in the Mozo Experts Choice Awards.


* 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.