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The successive rate hikes over the past months have led to borrowers seeking shelter in fixed rates.

A new report from Australian Finance Group (AFG) showed that over the third quarter of 2023 financial year (March 2023 quarter), the share of fixed-rate products rose from 4.8% to 5.6%.

While this is the second consecutive quarter of increase for fixed-rate home loan products, the current level is still well below long-term averages.

Overall, rate rises have taken a toll on overall lending — AFG reported a 3.3% decline in lodgements over the quarter and 11.67% annual drop.

Despite these declines, lodgements remain consistently above pre-pandemic levels.

Major banks were able to widen their market share, with lodgements increasing 2.2% to 61.8%, the highest level since the final quarter of 2020.

The growth in the share of major banks in the home loans market was due to the competitive offers like cashbacks that are available to new customers.

CommBank cuts fixed rates

CommBank is the first among the major banks to slash fixed rates.

A report from the Australian Financial Review said CommBank reduced its three-year fixed rate for packaged loans by as much as 40 basis points.

Your Mortgage confirmed the changes by looking at the current offers by CommBank. According to the latest changes as of 14 April, here are CommBank’s three-year fixed rates:

  • Owner-Occupier Three-Year Fixed Rate with package – 5.59% p.a. (7.20% p.a. comparison rate)
  • Investor Three-Year Fixed Rate with package – 5.69% p.a. (7.63% p.a. comparison rate)

In the AFR report, Home Loan Experts founder Otto Dargan said this move by CommBank is significant, and could be a signal for other major banks to start cutting their three-year fixed rates soon.

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.

Update resultsUpdate
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.
$2,408
Principal & Interest
Variable
$0
$530
70%
Featured Online ExclusiveUp to $4k cashback
  • Immediate cashback upon settlement
  • $2000 for loans up to $700,000
  • $4000 for loans over $700,000
6.15% p.a.
6.15% p.a.
$2,437
Principal & Interest
Variable
$0
$0
90%
5.99% p.a.
5.90% p.a.
$2,396
Principal & Interest
Variable
$0
$0
80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
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 .

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Photo by kanchanachitkhamma on Canva.