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)^^

Lender
Loan
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)^^

Term
Rate leader
Fixed rate
1-year
The Capricornian
5.45% p.a. (6.87% p.a. comparison rate*)
2-year
Macquarie Credit Union
5.49% p.a. (6.18% p.a. comparison rate*)
3-year
Australian Mutual Bank
5.48% p.a. (6.10% p.a. comparison rate*)
4-year
Qudos Bank
5.84% p.a. (5.94% p.a. comparison rate*)
5-year
RACQ Bank
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.

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 473 home loans.
Last updated 19 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.

  • 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.

  • 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.

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