Mortgage Rates

With over 500 mortgages from 80 lenders to compare, Mozo’s handy comparison tables are ready to help you pick the best mortgage to suit your needs. So start comparing great value offers today and save yourself thousands down the line.

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Start your search

With Mozo’s simple comparison tables you’ll be able to start your search in seconds. By plugging in the amount in the amount you want to borrow and your prefered term in the field below, our tables will do the rest by showing you the best mortgage available.

Find your best mortgage fit

We know that your own search is going to be unique, which is why we compare mortgages from a range of lenders - from major banks to online lenders and loans best suited for investors to first home buyers.

Become a mortgage pro

Got any queries about the mortgage process? Our range of handy mortgage guides and tips will help you cut through the jargon and for help crunching all your figures - check out our mortgage calculators.

Mortgage rates comparisons on Mozo - page last updated October 26, 2020

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I want to borrow

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  • 2.54% p.a. variable

    2.81% p.a.

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  • mozo-experts-choice-2020

    2.48% p.a. variable

    2.50% p.a.

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  • mozo-experts-choice-2020

    2.09% p.a.
    fixed 2 years

    2.98% p.a.

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  • mozo-experts-choice-2020

    2.34% p.a. variable

    2.34% p.a.

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  • mozo-experts-choice-2020

    2.29% p.a. variable

    2.32% p.a.

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  • mozo-experts-choice-2020

    2.49% p.a. variable

    2.49% p.a.

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  • 2.68% p.a. variable

    2.69% p.a.

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  • 2.59% p.a. variable

    2.76% p.a.

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  • 2.61% p.a. variable

    2.67% p.a.

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  • 2.59% p.a. variable

    3.00% p.a.

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  • 2.18% p.a.
    fixed 2 years

    3.72% p.a.

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  • 2.65% p.a. variable

    2.68% p.a.

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  • mozo-experts-choice-2020

    2.19% p.a.
    fixed 3 years

    2.79% p.a.

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  • 2.49% p.a.
    fixed 3 years

    3.28% p.a.

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  • mozo-experts-choice-2020

    2.44% p.a. variable

    2.38% p.a.

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  • mozo-experts-choice-2020

    2.14% p.a.
    fixed 3 years

    2.41% p.a.

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  • 2.39% p.a.
    fixed 3 years

    3.08% p.a.

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  • 1.99% p.a.variable for 12 months and then 2.48% p.a. variable

    2.47% p.a.

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  • mozo-experts-choice-2020

    2.59% p.a. variable

    2.60% p.a.

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  • 2.59% p.a. variable

    2.63% p.a.

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  • mozo-experts-choice-2020

    3.04% p.a. variable

    3.04% p.a.

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  • 1.99% p.a.variable for 24 months and then 2.50% p.a. variable

    2.93% p.a.

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*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, loan amount and term entered. 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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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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Why it makes sense to compare mortgages with Mozo

A mortgage is likely to be the largest financial commitment you will ever make, so it makes sense to commit the time and research to finding the best mortgage deal you can - especially when you’re going to be making repayments over a period of decades.

Thankfully the days of needing to go into your branch to negotiate a deal with your bank manager are long gone, with hundreds of great mortgage offers available to make it easier to find the right deal for you. That’s where Mozo comes in! We compare over 500 mortgage interest rates and products from 80 different lenders, including from the Big Four banks, credit unions and even online lenders, so you know you’re getting a great overview of some of the best deals on the market.

But before you start your search, there are a few questions you should ask yourself.

MORTGAGE RATES

Which type of mortgage rate is right for me?

Looking for the right type of mortgage rate for you? That comes down to how you want to make your repayments.

If you’re on a strict budget and want stability, a fixed rate mortgage could be the way to go. Since repayments are ‘fixed’, you can easily plan for them down the track

Fixed rate mortgages typically last between 1-5 years. Then you can either take out another fixed loan, or switch to a variable rate mortgage.

But what if you want to keep your repayment options open? A variable rate mortgage might suit you better.

These mortgages tend to offer you a wider range of flexible features, including:

  • The ability to make extra repayments - many lenders offer free extra repayments
  • A redraw facility, if you want to dip into those extra repayments (although fees may apply)
  • An offset account, where you can park your savings to offset some of your principal. This means you’ll pay interest on a lower amount:
    • Amount borrowed (i.e. principal) = $500,000
    • Savings in offset account = $20,000
    • Amount you’ll pay interest on = $500,000 - $20,000 = $480,000
  • Repayment holidays - take a break from repayments for a certain time, usually only if you’re ahead on your repayments

Variable rate mortgages are great if you want to pay off your mortgage sooner and save on interest, or if you want to refinance without worrying about exit fees.

But it can be a bit of a gamble - if rates increase, so will your repayments.

What if you want the best of both worlds? You could consider a split rate mortgage, where a portion of your mortgage is fixed rate, while the other portion is variable rate.

Split rate mortgages give you peace of mind against rate rises, while also giving you access to flexible features. So it could be your match if you’re looking for both security and flexibility in your mortgage!

How to find the best mortgage for you

Whether you’re a young Australian entering the property market for the first time, an investor looking for their next opportunity, or a family on the hunt for a cheaper mortgage to cut down their repayments, it’s always important to compare a range of deals to find one that’s best suited to you. But to narrow down your search, a great first step to take is to figure out what kind of borrower you are. 

What kind of borrower am I? 

Are you a first home buyer, or are you looking to switch to a better deal? As a first home buyer you may want a deal that comes with a lower deposit requirement on top of the cheapest mortgage rate you can get, whereas if you’re refinancing, you may be on the lookout for a low rate deal which also offers features that can help you save - such as an offset account or the potential to make free extra repayments. 

Meanwhile, for property investors, a key consideration might be whether to opt for an interest only mortgage, or principal and interest. On the one hand, interest only investment loans could save you money and increase your cash flow in the short term: 

  • During the interest only period, you can look forward to smaller monthly repayments since you aren’t repaying the amount you’ve borrowed (i.e. the principal).
  • Interest only mortgages could help to reduce your annual tax bill, as the interest paid on your investment property is tax deductible. 

But on the other hand, interest only loans generally cost you more in the long run: 

  • Because you’ve held off on principal repayments during the interest only period, be prepared for significantly higher repayments once your mortgage reverts back to principal and interest. 
  • Getting a late start on your principal repayments also means it could take you considerably longer to pay off your mortgage. As such, you’ll be charged more interest over the life of the loan. 

Which type of mortgage interest rate is right for me? 

Now that you’ve figured out what kind of borrower you are, the next step is determining which type of mortgage rate fits your situation, as each comes with its own set of pros and cons.

The type of rate you go with influences how you’ll make your repayments - fixed rate loans have more structure, so you can expect to repay the same amount every month, while variable rate loans offer a lot more flexibility, including the ability to make additional repayments which can lower the total interest you pay over the life of the loan. 

Variable interest rate

The most common type of mortgage in Australia, variable rate mortgages are typically dictated by the movement of the official RBA cash rate, though it’s not uncommon for banks to move their rates out of cycle.

A variable rate mortgage could be a great option for borrowers who like the idea of flexibility in terms of being able to make extra repayments, or in the potential to make lower repayments if rates go down. Obviously a mortgage rate drop is great news for borrowers with a variable loan, but there’s always the possibility they will go up - meaning you’d need to pay more. That’s why it’s important to factor in the possibility of a rate rise before you borrow, or stash away savings to act as a buffer.

Fixed interest rate

A fixed rate mortgage provides borrowers with absolute certainty when it comes to making repayments, as the rate is (no surprises) “fixed” for a set period of time - usually between 1-5 years. On the plus side this could mean that you’re insulated from mortgage rate rises over that period, though it also means you could miss out on making lower repayments if they fall.

Once the fixed period is over, borrowers will have the option of fixing again for another set period, or switching to a variable rate mortgage.

Just bear in mind that you might not have access to all of the features you would with a variable rate offer should you opt for a fixed rate mortgage, and they also tend to come with higher rates.

Split interest rate

One option you might not be aware of as a borrower is your potential to split your mortgage. While not every lender will offer you this possibility, if they do you’ll be able to pay off part of the amount you borrow at a fixed rate while leaving the other portion on a variable rate. This means borrowers can make the most of the flexibility and features of a variable loan and the repayment certainty of a fixed rate.

Taking out a mortgage is a massive financial commitment for many Aussies, so it makes sense to want to find a mortgage rate that’s the right fit for you. And since there are a few mortgage rate options around to choose from, it can be tricky to know how they compare. That’s where our Mortgage Interest Rates page comes in - it can help you compare some of the available interest rates around, as well as fees and mortgage features. Easy as.

How much will I be able to borrow? 

Speaking of repayments, it’s always a good idea to see just how much you can afford to borrow before you start comparing mortgages, as borrowers able to make principal and interest repayments will generally be able to snag cheaper rates than borrowers who make interest-only repayments. 

There are a number of factors that go into the size of the loan you’ll be able to borrow from your lender, including: 

  • Your income: Lenders want to know how much money you have access to. 
  • Your employment situation: If you’re self-employed or a casual or contract worker, lenders will likely think of you as higher risk since your job is more unstable, and therefore you’d have less borrowing power than a full-time worker. 
  • Your expenses: Lenders also want to keep a close eye on your household spending, such as electricity and phone bills, grocery costs and childcare.
  • Your debt: Got any credit cards, personal loans or car loans? The more debt you have hanging over your head, the lower your borrowing power will be, since you’re seen as less able to repay your mortgage.

But one of the biggest factors that affects your borrowing power is the actual deposit you can put down. In Australia the general preference among lenders is to keep your LVR (Loan to Value Ratio) under 80%, which means you’ll be required to save up at least a 20% deposit. However, some mortgage providers do offer loans with LVRs of up to 95% (a 5% deposit), though you’ll generally have to take out Lenders Mortgage Insurance (LMI) if you can’t come up with a 20% deposit.

Lenders also set minimum and maximum loan amounts which could impact the amount you’re able to borrow and the mortgage rate you’re offered, with values typically ranging anywhere from tens of thousands to millions of dollars.

Want to see just how much you’ll be able to borrow? Wonder no more by plugging your details into the Mozo home loans borrowing calculator.

How can I pay off my mortgage sooner? 

If you’re eager to free yourself from your mortgage sooner rather than later, a variable rate mortgage could be a better fit. That’s because you have access to more flexible repayment options and can also refinance whenever you’d like without having to worry about break costs or exit fees (that may apply to fixed rate mortgages). 

Here are some savvy tips for repaying your mortgage faster: 

  • Make more frequent repayments: That’s right! Just by opting for fortnightly instead of monthly repayments, you can shave quite a few years off your mortgage term. That’s because when you pay per fortnight, you’re increasing your payments over one year from 12 to 26. In other words, if you switched your repayments from $2,000 a month to $1,000 a fortnight, you’d be paying off $26,000 over 12 months, as opposed to $24,000 - that’s $2,000, or an entire month, more than the monthly option!
  • Make extra repayments: Many variable rate mortgages offer free extra repayments, and this is a handy feature if you want to save on interest in the long run. Even a small amount - say, an extra $100 every fortnight - can make a big difference; for a $500,000 mortgage with a rate of 3.5% over 25 years, you would save $33,129 in total interest and cut down your mortgage term by 3 years. 
  • Use a mortgage offset account: Imagine an account that lets you store your savings while also offering the perk of reducing your interest costs and mortgage term. Well, that’s what an offset account is! So if you have a $500,000 mortgage and you put $20,000 inside your offset account, then you only have to pay interest on $480,000 of your home loan. Just keep in mind that if you do withdraw money from your offset account, the amount you’ll be charged interest on will go back up again.
  • Give your mortgage a health check every few years: Doing a health check means shopping around and keeping your eye out for better deals even after you’ve taken out a mortgage. With lenders constantly changing their deals, this is a good way to make sure you stay on a competitive rate over the life of your loan. You could cut down your loan term significantly just by switching to a better rate and keeping your repayments the same as before. 


Written by: Kelly Emmerton, Mozo’s Money Editor 


OTHER FAQs 

What kinds of mortgage features should I look out for? 

While your mortgage interest rate is probably the main feature you’ll be interested in, many of the best mortgages also come packed with a bunch of other handy features. These typically include offset accounts and the potential to make extra repayments which could help you pay off your loan faster, to a redraw facility which will allow you to dip into those repayments, and even repayment holidays which allow you to (you guessed it) take a break from repayments.

Just bear in mind that while some of these features may come included at no added cost, many mortgage lenders will charge extra fees or a higher rate for the privilege.

What kinds of fees and costs can I expect to pay on a mortgage? 

When it comes to finding a mortgage, looking at the interest rate is a good place to start, but you’ll also need to take into account any fees you may be charged by your lender as well as other expenses you may have to shell out.

While they differ between mortgage providers, some of the more common expenses you can expect to pay include:

Application fee: Also known as an establishment fee, this is a one off fee (usually in the hundreds of dollars) you can expect to pay for your lender to set up your mortgage.

Valuation, Legal and Settlement fees: You may also be charged other upfront fees by your lender in order for a professional to value your property, for any legal costs and upon the settlement on the mortgage. If you don’t pay for these through your mortgage, you’ll likely have to pay them independently anyway.

Ongoing service fee: Also called an administrative fee, this is a fee charged by your lender to administer your mortgage and is generally payable on a monthly or yearly basis. Not all mortgages have these fees - usually the more features you’re getting, the more likely you are to pay an ongoing fee.

Discharge fee: Simply put, this is a fee you could be charged when you finish paying off or ‘discharge’ your mortgage.

If you go above the 80% LVR mark you’ll also generally be required to pay LMI (Lenders Mortgage Insurance) which comes as a one off payment upon settlement, or can sometimes be rolled into your mortgage repayments. Depending on your situation, you could also be liable to pay stamp duty. This can be a significant cost depending on the state you live in, the cost of your property, the type of property you’re buying and whether or not you’re a first home buyer, so to find out how much extra you might need to factor in, check out our stamp duty calculator.

How can I switch to a more competitive mortgage rate? 

By refinancing! It’s a smart move to review your mortgage once every few years to ensure you’re still signed up to a low rate deal. In the wake of RBA cash rate cuts, lenders have slashed their mortgage rates to record lows, so it’s likely that by switching to a better deal, you could be saving thousands of dollars. 

Just keep in mind that if you’re on a fixed rate mortgage and want to refinance, you’ll likely have to pay an early termination fee, so make sure to check that these costs don’t outweigh your potential interest savings. 

What’s a mortgage comparison rate? 

A comparison rate is essentially a tool to help mortgage borrowers get a clearer picture of what they’ll actually be paying for their loan. It not only includes the headline interest rate, but also the fees and costs charged for a particular loan - making it easier to accurately compare mortgage rates between providers.

You’ll be able to compare mortgage comparison rates using our comparison tables, but just bear in mind that while it may give you a clearer picture than the mortgage rate itself, the comparison rate doesn’t take into account government charges or redraw and early repayment fees.

How much could I save on my mortgage by comparing? 

After looking at the difference between some mortgages, you might be questioning the value of comparing mortgage interest rates at all, especially when the difference between most offers is within 1%.

But hold on for one moment, because while the interest rate difference may seem small, the sheer size of your mortgage combined with the long period of time you’re paying it off (generally 25 to 30 years), means you’ll be forking out a considerable amount of interest over that period - we’re talking hundreds of thousands of dollars. That’s why opting for a more competitive mortgage rate could end up saving you a huge amount of money.

Let’s look at an example using the Mozo mortgage repayments calculator.

Sarah is a first home buyer and wants to take out a $400,000 loan to buy a two bedroom apartment in her city (she has her 20% deposit). If Sarah opted for a 3.75% ongoing mortgage interest rate over a 25 year loan, making principal and interest repayments on a monthly basis, she would need to pay $2,057 each month or a total of $216,957 in interest over the life of the loan.

Conversely, if Sarah chose a mortgage with an interest rate of 4% she would end up paying $2,111 each month or a total of $233,404 over the life of the loan. That works out to a sizeable $16,447 difference between the two loans.

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Adelaide Bank Home Loan review
Overall 10/10
Adelaide Bank - Care about their customers

Refinanced our home loan with Adelaide Bank mid 2019 for our investment home which will be for our retirement. They have been amazing from the very beginning and throughout COVID-19. Reduced our rate twice without us asking, customer service is excellent. Called us 3 times so far throughout COVID-19 to check on us if we need assistance - you cannot ask for a better bank.

Read full review

Refinanced our home loan with Adelaide Bank mid 2019 for our investment home which will be for our retirement. They have been amazing from the very beginning and throughout COVID-19. Reduced our rate twice without us asking, customer service is excellent. Called us 3 times so far throughout COVID-19 to check on us if we need assistance - you cannot ask for a better bank.

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Deborah, New South Wales reviewed 2 days ago
NAB Home Loan review
Overall 8/10
Excellent customer service

Customer service has been wonderful all throughout the bank, personal and business banking. Especially in times of hardship.

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Customer service has been wonderful all throughout the bank, personal and business banking. Especially in times of hardship.

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This bank's staff are totally incompetent. Don't even know their own rules and processes. Do not use them if you have anything slightly more complex than a very simple owner-occupied loan. They are useless, don't understand business, and change the rules as they go.

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This bank's staff are totally incompetent. Don't even know their own rules and processes. Do not use them if you have anything slightly more complex than a very simple owner-occupied loan. They are useless, don't understand business, and change the rules as they go.

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Recent home loan articles

Repayment holidays lower mortgage stress to near pre-crisis levels

Despite unprecedented economic headwinds, mortgage holders across Australia have managed to stave off default, with new research from Roy Morgan showing levels of mortgage stress approaching pre-crisis levels.In the three months to August 2020, an estimated 751,000 mortgage holders (20.2%) were considered ‘at risk,’ while 433,000 (12.5%) were considered ‘extremely at risk.’ According to Roy Morgan, both numbers are among the lowest recorded.Apart from Victoria, which had re-entered lockdown at the time following a second coronavirus outbreak, most of the country was “progressing towards a ‘COVID-normal’ situation,” thanks to a raft of support measures from banks and the government.This comes despite 11.2 million Australians (72%) experiencing a change to their employment circumstances due to COVID-19 in May, with that number remaining elevated at 10.4 million in July.For many, these employment changes were negative, and included a drop in hours worked, a slowdown or halt in business activity, being stood down, having pay reduced, and being made redundant.RELATED: Why a 1% difference in your home loan rate mattersAccording to Roy Morgan chief executive, Michele Levine, changes like these are typically associated with an increase in mortgage stress, with job loss in particular causing an immediate jump into a risk category.“Over two-in-three mortgages rely on more than one income and our analysis shows losing even the lower of these two incomes causes an immediate quadrupling of those mortgage holders considered ‘at risk’ or ‘extremely at risk,” she said.While the current support measures appear to have fortified the property market, Levine worries they have merely kicked a potential real estate crisis further down the road.“Because of these measures the impact of COVID-19 is yet to be fully felt, but we already know there will be significant pressures emerging when the support ends,” she said.“JobKeeper has already been reduced in early October 2020 and is set to end entirely by April 21 while the mortgage deferrals offered by banks to customers in financial distress are set to run out at the same time.“One of the biggest tasks for banks during the present period is to determine which customers will be able to return to paying their mortgage in the period ahead and which customers will not have that capacity when the deferrals end early next year.”For information about the assistance available to households and businesses, along with tips to keep your finances in good health amid the current crisis, browse our guide to coronavirus and your finances.

Property listings in Melbourne skyrocket as restrictions ease

The unwinding of restrictions in Victoria has given a boost to the real estate market, with research firm CoreLogic recording a wave of activity from sellers in the state’s capital.Since property agents were given the green light to hold onsite inspections, the number of new listings in Melbourne has swelled from 1,606 to 6,974 — an increase of around 330%.“The result is likely due to months of pent-up decisions to sell from vendors, and reflects how the real estate transaction process has remained tied to physical inspections,” said CoreLogic head of research Australia, Eliza Owen.According to the data, the volume of new listings in Melbourne topped all other capital cities in the four weeks to 18 October, bringing total advertised stock in Melbourne to more than 21,000 properties.There was an increase in new listings in 39 of 40 SA3 regions in Melbourne, with Macedon Ranges the sole underperformer. The areas with the greatest recovery of volumes were Wyndham (314), Melbourne City (273) and the Whittlesea-Wallan region (256).While the amount of new listings could point to a potential market rebound, Owen doesn’t rule out the possibility that distressed sales are behind the uptick.“A significant increase in new stock across Melbourne can mean different things for the state of the market. ‘Forced’ selling was a possibility from the pandemic, as significant job losses across Victoria may have limited the ability of some households to keep paying their mortgage,” she said.RELATED: Repayment holidays lower mortgage stress to near pre-crisis levelsWhile it will take some time to get an accurate read on buyer sentiment, due to the time it takes before a listed property is transacted, there are certainly signs that conditions in the market are improving.“New stock added to the market increased by around 5,370 properties, but the change in total stock was only 4,790. This suggests at least some stock on market has been absorbed over the past four weeks,” said Owen.“In the week ending 18th of October, the final auction clearance rate of 60.2% across Melbourne, was achieved alongside the highest volume of auctions seen in two months. Over the past month, the rate of decline across Melbourne dwelling values has also eased.”For more mortgage and property trends, browse our home loan statistics page. And if you’re after a home loan, visit our home loans comparison page, where you’ll be able to filter your search by rate and type.