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It's been another quiet week on the home loans market with three smaller lenders increasing their variable rates while one also dropped its one-year fixed rate offerings.
It seems mortgage lenders are taking a breather after the last of the pandemic-era rate fixers have been reabsorbed into the lending market.
Certainly, no one is holding their breath ahead of next week's Reserve Bank of Australia board meeting, where the cash rate will be back on the table.
ANZ shifts cash rate cut call to February
On Tuesday, ANZ Bank broke ranks with its big four peers in pushing back its forecast cash rate cut to February 2025.
Previously, all four banks were tipping the first downward movement in the cash rate to come in November.
ANZ said it had formally changed its view given recent official data showing less weakness in household consumption, government consumption adding to GDP growth, and strong jobs growth in health care and social assistance.
On top of stronger-than-expected inflation in the first quarter, ANZ has pegged February for the first cash rate cut with a follow-up easing most likely in April, or possibly May, with a third cut in the final quarter of 2025.
For mortgage holders hanging on for rates cuts in 2024, it's not good news but they can take some solace in rates cuts by other OECD central banks, most recently the EU and Canada.
No cash rate move expected next week
The RBA board meets in Sydney on Monday and Tuesday, with the monetary policy decision due at 2.30pm on Tuesday and RBA governor Michele Bullock to face the media at 3:30pm.
The widely held consensus is that the cash rate will remain on hold and Governor Bullock will deliver her usual message on pesky inflation.
So, against that backdrop, let's check what home lenders are doing on the mortgage market this week.
MOVE moves rates higher
The customer-owned bank raised a range of its Everyday and Offset principal and interest (P&I) home loans by 10 basis points but hiked some of its fixed rate products by up to 35 basis points.
MOVE Bank's Everyday Variable Home Loan is now at 6.09% p.a. (6.14% p.a. comparison rate*) for owner occupiers with <80% loan-to-value ratio (LVR).
It comes with a proviso - to be eligible for the rate, a credit of $1,500 a month must be deposited into a MOVE transaction account.
Here are MOVE's latest Everyday Variable and Offset Variable rates:
| Everyday Variable | Change (%) | New rate | Comparison rate* |
| ≤80% LVR | +0.1% | 6.09% p.a. | 6.14% p.a. |
| 80.01% - 90% LVR | +0.1% | 6.24% p.a. | 6.29% p.a. |
| 90.01% - 95% LVR | +0.1% | 6.39% p.a. | 6.44% p.a. |
| Offset Variable | |||
| ≤80% LVR | +0.1% | 6.29% p.a. | 6.34% p.a. |
| 80.01% - 90% LVR | +0.1% | 6.44% p.a. | 6.49% p.a. |
| 90.01% - 95% LVR | +0.1% | 6.59% p.a. | 6.64% |
MOVE's best new Everyday Fixed Home Loan Rate is 6.14% p.a. (6.15% p.a. comparison rate*) for maximum LVR 95% loans fixed for two or three years.
Greater Bank, Newcastle Permanent up rates
The two Hunter-based banks merged last year and have adjusted their home loan rates in lockstep.
Greater Bank's Ultimate Discount Variable P&I home loan has gone up 10 basis points to 6.29% p.a. (6.65% p.a. comparison rate*) for LVR ≤80%.
Its Great Rate Home Loan - Discount variable rate loan has also jumped 10 basis points to 6.19% p.a. (6.20% p.a. comparison rate*) for LVR ≤80%.
Fixed rate loans for both products have taken a hefty 30 basis point cut although the latest ABS lending data shows only around 1% of new loans by value are being taken at fixed rates.
Newcastle loan moves
Greater's stablemate has also lifted its variable rates on its Real Deal Special Offer, Real Deal Investment, and Premium Plus Package loans this week.
Newcastle Permanent's Real Deal Special Offer home loan for owner occupiers is now at 6.19% p.a. (6.23% p.a. comparison rate*), up 10 basis points, for LVR 80% loans.
Its Premium Plus Package owner occupier special is now at 6.24% p.a. (6.58% p.a. comparison rate*) for P&I loans LVR <80%, also up 10 basis points.
Premium Plus Package variable rate loans come with an offset account and an annual fee of $395.
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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 | Additional Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
6.04% p.a. | 6.06% p.a. | $3,011 | Principal & Interest | Variable | $0 | $530 | 90% | 4.6 Star Customer Ratings |
| Promoted | Disclosure | |||||||||
5.99% p.a. | 5.90% p.a. | $2,995 | Principal & Interest | Variable | $0 | $0 | 80% | Apply in minutes |
| Promoted | Disclosure | |||||||||
6.09% p.a. | 6.11% p.a. | $3,027 | Principal & Interest | Variable | $0 | $250 | 60% |
| Promoted | Disclosure | ||||||||||
5.69% p.a. | 6.16% p.a. | $2,899 | Principal & Interest | Fixed | $0 | $530 | 90% |
| Promoted | Disclosure |
Image by Bench Accounting on Unsplash
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