It could be the pre-Christmas wind down, or maybe lenders aren't expecting any cash rate action until well into 2025, but there was little movement in home loan interest rates this week.

Last week, ANZ cut rates on its Simplicity Plus home loans by up to 15 basis points, dropping them to some of the lowest variable rates among the big four.

This week, it was smaller lenders adjusting their rates downwards – Bank of Sydney cutting some of its variable rates and The Mac dropping certain fixed rates.

The stillness was perhaps fitting as there was little news afoot on the market this week apart from Wednesday's release of the October monthly inflation figures.

Inflation data leaves the market unmoved

The October data, as with any month immediately after a quarterly data release, was not highly regarded by the market.

It doesn’t contain the full basket of the Consumer Price Index and is considered ‘goods heavy’, at a time when services inflation is largely driving Australia’s inflation rate.

The annualised headline inflation read came in at 2.1%, the same as the September monthly reading, although the measure of underlying inflation – the trimmed mean number – came in higher at 3.5%, up from 3.2% the previous month.

NAB economists say this rise was largely because electricity, recording a 35.6% annual plunge in price, was stripped out of the reading, while last year’s big fall in October travel prices also dropped out of calculations.

NAB now expects inflation will be a little softer than the Reserve Bank of Australia has forecast in the December quarter.

Not that it’s likely to move the RBA board to make a surprise pre-Christmas interest rate cut to cheer the punters when it next meets on 9-10 December.

In fact, economists and analysts are busy pushing back their forecasts of an interest rate cut until mid-2025 – and that’s before they gauge how another Donald Trump presidency may affect world financial markets.

But there is little the RBA can do about that at this stage, though RBA governor Michele Bullock assures us the board will be watching closely.

So, with that, let’s check the detail of this week’s interest rate movements on the mortgage market.

Bank of Sydney slashes higher LVR rates by more than 1%

You can always count on Bank of Sydney to make a bit of a splash with its rate movements.

The foreign-owned bank has cut the variable rates on its Expect More home loans for both owner occupiers (OO) and investors, with those with loan-to-value ratios (LVRs) greater than 80% realising cuts of more than 100 basis points.

Here are the new rates for those making principal and interest (P&I) repayments:

Product Change New rate Comparison rate*
Expect More OO Variable P&I LVR 80-90% -1.01% 6.54% p.a. 6.69% p.a.*
Expect More Investment Variable P&I LVR 80-90% -1.16% 6.99% p.a. 7.13% p.a.*

Bank of Sydney is also offering a new advertised Expect More variable rate of 7.09% (7.23% p.a. comparison rate*) to owner occupiers with an LVR up to 95% making P&I repayments. 

Those turning to an Expect More loan with LVRs above 80% may need to pay for lenders mortgage insurance (LMI).

The Mac cuts fixed rates by up to 20 bp

NSW-based The Mac credit union trimmed its Standard Fixed one- and three-year home loan rates.

Its best new rate is now 5.99% p.a. (7.42% p.a. comparison rate*) for owner occupiers taking out a three-year fixed loan with an LVR of up to 95%.

Here are The Mac’s new rate changes:

Product Change New Rate Comparison Rate*
Standard Fixed 1 year -0.1% 6.29% p.a. 7.81% p.a.*
Standard Fixed 3 year -0.1% 5.99% p.a. 7.42% p.a.*
Investment Standard Fixed 1 year -0.1% 6.39% p.a. 7.82% p.a.*
Investment Standard Fixed 3 year -0.2% 6.09% p.a. 7.45% p.a.*

The Mac fixed rate loans come with a redraw facility, although fees may apply if borrowers make additional payments over a certain amount.

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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.

Update resultsUpdate
Filters
LenderHome LoanInterest 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 TagsFeaturesLinkComparePromoted ProductDisclosure
6.04% p.a.
6.08% p.a.
$3,011
Principal & Interest
Variable
$0
$530
90%
4.6 Star Customer Ratings
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  • No application, ongoing monthly or annual fees.
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Disclosure
5.99% p.a.
5.90% p.a.
$2,995
Principal & Interest
Variable
$0
$0
80%
Apply in minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
 Disclosure
6.09% p.a.
6.11% p.a.
$3,027
Principal & Interest
Variable
$0
$250
60%
  • No annual fees – None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
 Disclosure
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 . View disclaimer.

Important Information and Comparison Rate Warning

Image by Riccardo Pitzalis via Unsplash



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