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.
| 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 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.29% p.a. | 5.33% p.a. | $2,773 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | ||||||||||
5.19% p.a. | 5.10% p.a. | $2,742 | Principal & Interest | Variable | $0 | $0 | 80% |
| Disclosure | |||||||||||
5.39% p.a. | 5.43% p.a. | $2,805 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure |
-
Photo by kanchanachitkhamma on Canva.
Share