More home-loan borrowers are exploring their refinancing options and the Reserve Bank of Australia’s recent rate pause would give them more time to find the best deal for them.

PEXA’s Refinance Index continued to show elevated refinancing activity, hitting 164.4 points in the week ending 2 April 2023. This builds on the record-high month achieved in December 2022.

Refinancing activity went up 22.7% over the same week in 2022 and 58.0% from the same week in 2021.

Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers. Click here to jump to the rest of the article.

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LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.04% p.a.
6.06% p.a.
Principal & Interest
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5.99% p.a.
5.90% p.a.
Principal & Interest
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6.14% p.a.
6.16% p.a.
Principal & Interest
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5.95% p.a.
5.95% p.a.
Principal & Interest
5.94% p.a.
5.95% p.a.
Principal & Interest
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of .

Cash rate just near the peak

PEXA chief economist Julie Toth said the current cash rate is currently at the highest it has been since 2012, with all rises occurring in less than a year.

“These rate rises have contributed to falling average property prices and sales volumes nationwide, following record peaks in both pricing and sales volumes in early 2022,” she said.

“A cyclical floor already seems to be forming in property market pricing in our largest cities, but this has not yet flowed through to other locations — this pause will assist in stabilising prices.”

However, Ms Toth recognised that the hike trend has yet to wind up, but the cash rate is already near its peak.

“Looking ahead, the RBA continues to flag the possibility of further rate rises in 2023. The pace is set to slow however, with smaller monthly increases or pauses potentially on the horizon as we reach the top of the current rate rise cycle,” she said.

Tiger Brokers Australia chief investment officer Brett Reynolds said the RBA would likely take another pause in May, as it observes the impact of previous rate rises.

“Come the middle of the year another 25 basis point rise can be expected. While the rate of inflation is easing, it is still incredibly high. The RBA will continue to seek to bring inflation under 3%,” he said. “Still, I expect rates to go higher, likely to 4%.”

Renewed confidence in property

Real Estate Institute of Queensland CEO said the pause is a “welcome reprieve” to homeowners who are already carrying the burden of “fixing the inflation curse.”

“A pause in interest rate hikes is an appropriate response at this time, allowing households and businesses a few moments to pause and assess their expenditure,” she said.

“It also gives first home buyers a chance to stabilise their borrowing capacity.”

CoreLogic research director Tim Lawless shared similar thoughts on the cash rate nearing its peak.

“An increased level of certainty around the rate hiking cycle should flow through to an improvement in consumer sentiment, which has been stuck at levels seen during the worst of the Global Financial Crisis and early phase of the pandemic,” he said.

Mr Lawless said any upwards movement in the consumer sentiment would have a positive effect on housing market activity for both sellers and buyers.

“Despite the highest interest rates since 2012, we have seen a lift in housing values over the past month; a timely reminder that interest rates are but one of the many key factors influencing housing trends,” he said.

In fact, March figures show a 0.6% increase in median dwelling price, following months of decline.

“While we aren’t certain if March marks a turning point for housing values, it’s clear that low advertised supply, the tightest rental conditions on record and surging overseas migration are providing some positive momentum to housing markets,” Mr Lawless said.

For PropTrack senior economist Eleanor Creagh, the downwards pressure of interest rate rises is being offset, resulting in a stronger showing in the property market.

“The impact of interest rate rises is being counterbalanced by the strong rebound in immigration, and tight rental markets, which combined with the limited stock on market are underpinning home prices,” she said.

“Now the Reserve Bank has paused its tightening cycle, home prices will likely continue to stabilise as some of the uncertainty buyers have experienced with respect to borrowing capacities and mortgage servicing costs reduces. If stock levels remain constrained, the bounce is likely to continue to firm.”


Photo by studioroman on Canva.