Key mortgage rate adjustments as inflation figures loom

This week saw selective movements in the mortgage market, with AMP leading the charge with home loan rate changes. 

Meanwhile, mutual bank The Capricornian unveiled a two-year fixed rate of 5.74% – not far off what appears to be the lowest rate available on two-year fixed rate terms (5.49% p.a. from Newcastle Permanent).

The market is currently waiting with baited breath for the latest quarterly inflation figures, due to be released on Wednesday.

The Australian Bureau of Statistics' (ABS) quarterly Consumer Price Index (CPI) offers a more comprehensive look at the state of the economy than its monthly counterparts – and some experts are hopeful for a notable easing.

Economists from Australia's major banks believe that headline inflation may have returned to the Reserve Bank of Australia's (RBA) target range of 2% to 3% during the September quarter.

Such an inflation read might signal that we're on the precipice of a long-awaited cash rate cut. 

However, the central bank remains more focused on underlying inflation, which is expected to remain above 3%.

With anticipation building around inflation figures, here's a closer look at the week's notable home loan rate movements:

AMP shakes up variable home loan interest rates

AMP was one of few lenders making home loan rate changes this week, dropping some of its variable rates while lifting others.

For owner-occupiers, the bank made changes to its Offset mortgage lineup for those borrowing between $500,000 and $1 million.

New rates are as follows:

Investors, on the other hand, realised a number of rate cuts.

Changes for those making principal and interest repayments are as follows:

The Capricornian cuts fixed rates by up to 83 basis points

The Capricornian Credit Union also slashed two year fixed rates to as low as 5.74% p.a. for owner-occupiers.

The following new rates are available on the mutual bank's Premium Choice home loan product:

Other movers

• The Mac dropped fixed rates for investors and owner-occupiers by up to 40 basis points

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Lender	Home Loan	Interest Rate	Comparison Rate*	Monthly Repayment	Repayment type	Rate Type	Offset	Redraw	Ongoing Fees	Upfront Fees	Max LVR	Lump Sum Repayment	Extra Repayments	Split Loan Option	Tags	Features	Link	Compare	Promoted Product	Disclosure
loans.com.au	loans.com.au Variable Home Loan P&I <90%	5.29% p.a.	5.33% p.a.	$2,773	Principal & Interest	Variable			$0	$530	90%				Owner Occupier Variable Principal & Interest 10% Min Deposit Redraw Extra Repayments More details	Available for purchase or refinance, min 10% deposit needed to qualify. No application, ongoing monthly or annual fees. Dedicated loan specialist throughout the loan application.	Go to site	Compare	Promoted	Disclosure
Unloan	Unloan Variable Rate Home Loan LVR < 80%	5.19% p.a.	5.10% p.a.	$2,742	Principal & Interest	Variable			$0	$0	80%				Built and funded by CommBank Owner Occupier Variable Principal & Interest 20% Min Deposit Redraw More details	A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.	Go to site	Compare		Disclosure
loans.com.au	loans.com.au Variable Home Loan with Offset P&I <90%	5.39% p.a.	5.43% p.a.	$2,805	Principal & Interest	Variable			$0	$530	90%				Owner Occupier Variable Principal & Interest 10% Min Deposit Offset Redraw Extra Repayments More details	Available for purchase or refinance, min 10% deposit needed to qualify. No application, ongoing monthly or annual fees. Quick and easy online application process.	Go to site	Compare	Promoted	Disclosure

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