Mortgage rates, particularly those on fixed terms, have been on a downward trend as the market’s expectation of cash rate cuts strengthens. 

Lenders have been scrambling to attract more customers looking to lock in low rates as the housing market, which is currently not in the best shape, stabilises as forecast.

Lower interest rates would obviously be beneficial for owner-occupiers and investors who have been reeling in skyrocketing home values. 

While fixed rates are going down, the teeter-totter of variable-rate home loans might keep borrowers on the edge of their seats for a while longer or until the anticipated rate cuts finally materialise.

The overall movement this week though was down. These are the mortgage lenders we saw dropping their rates: 

loans.com.au drops rates on fixed mortgage rates

Non-bank lender loans.com.au posted this week’s biggest rate drop after slashing its fixed rates by as much as 50 basis points.

Borrowers signing on to a five-year fixed term are offered a rate of 5.94% p.a. (6.57% p.a. comparison rate).

The special offer is currently one of the lowest rates available in the market for owner occupied home loans. 

Aside from the five-year fixed term, loans.com.au also applied cuts across its range of products for residents, including the following:

Product

Change

New rate

Comparison rate

Owner Occupier P&I, 1 yr

-30 bps

6.34% p.a.

6.83% p.a.*

Owner Occupier P&I, 2 yrs

-45 bps

6.14% p.a.

6.77% p.a.*

Owner Occupier P&I, 3 yrs

-45 bps

6.09% p.a.

6.71% p.a.*

Owner Occupier P&I, 4 yrs

-50 bps

6.24% p.a.

6.70% p.a.*

Owner Occupier P&I, 5 yrs, Special Offer

-50 bps

5.94% p.a.

6.57% p.a.*

For investors, here are the new rates on fixed loans on offer:

Product

Change

New rate

Comparison rate

Investor P&I, 1 yr

-30 bps

6.54% p.a.

7.12% p.a.*

Investor P&I, 2 yrs

-45 bps

6.34% p.a.

7.05% p.a.*

Investor P&I, 3 yrs

-45 bps

6.29% p.a.

6.99% p.a.*

Investor P&I, 4 yrs

-50

6.44% p.a.

6.98% p.a.*

Investor P&I, 5 yrs

-50 bps

6.49% p.a.

6.95% p.a.*

Heritage Bank lowers fixed rates, ups variable

Queensland’s Heritage Bank made a few changes to its owner occupied and investment home loan offerings. 

This week, the bank dropped its fixed rates by 20 basis points while simultaneously hiking variable rates by 5 bps. 

Product

Change

New rate

Comparison rate

Home Advantage Variable (LVR 70-80%), $150-699k

5 bps

6.24% p.a.

6.58% p.a.*

Home Advantage Investment Variable P&I, $150-699k

5 bps

6.49% p.a.

6.83% p.a.*

Home Advantage Residential Fixed, 3yrs, $150k+

-20 bps

5.79% p.a.

6.46% p.a.*

Home Advantage Residential Fixed, 5yrs, $150k+

-20 bps

5.79% p.a.

6.39% p.a.*

Home Advantage Investment Fixed P&I, 3 yrs, $150k+

-20 bps

5.99% p.a.

8.42% p.a.*

Home Advantage Investment Fixed P&I, 5 yrs, $150k+

-20 bps 

5.99% p.a.

7.92% p.a.*

Coincidentally, People’s Choice made the same adjustments to its brand of home loan products this week.  

Product

Change

New rate

Comparison rate

Home Loan Package Inv Standard Variable P&I $100k+ 70-80%

5 bps

6.34% p.a.

6.71% p.a.*

Home Loan Package Standard Variable P&I $100k+ 70-80%

5 bps

6.09% p.a.

6.46% p.a.*

Home Loan Package Owner Occupied Fixed P&I, 3 yrs (LVR ≤80%)

-20 bps

5.79% p.a.

6.38% p.a.*

Home Loan Package Investment Fixed P&I, 3 yrs (LVR ≤80%)

-20 bps

5.99% p.a.

6.61% p.a.*

Heritage Bank and People’s Choice merged a year ago to create the national mutual People First Bank. 

Great Southern Bank slashes variable rates

While other lenders focused on decreasing the rates on their fixed home loans, Great Southern Bank decided to wield the axe on its variable rates. 

The customer-owned bank cut a maximum of 30 basis points off its variable rate home loans this week. 

Product

Change

New rate

Comparison rate

Basic Variable P&I (LVR 80-90%)

-5 bps

6.44% p.a.

6.50% p.a.*

Basic Variable IO (LVR 70-80%)

-20 bps

6.94% p.a.

6.47% p.a.*

Offset Variable P&I (LVR 80-90%)

-5 bps

6.59% p.a.

6.65% p.a.*

Offset Variable IO (LVR 70-80%)

-30 bps

7.24% p.a.

6.59% p.a.*

Australian Military Bank moves rates down

Member-owned Australian Military Bank lowered the home loan rates it offers to its customers largely composed of Australian Defence personnel.

Dynamic adjustments were applied across its range of owner occupied and investment mortgages on fixed rates. 

Here are the details:

Product

Change

New rate

Comparison rate

Fixed Rate 1 yr

-10 bps

6.60% p.a.

6.98% p.a.*

Fixed Rate 2 yrs

-25 bps

6.45% p.a.

6.91% p.a.*

Fixed Rate 3 yrs

-40 bps

6.30% p.a.

6.82% p.a.*

Fixed Rate 5 yrs

-24 bps

6.45% p.a.

6.78% p.a.*

Inv Fixed Rate P&I, 2 yrs

-25 bps

6.70% p.a.

7.16% p.a.*

Inv Fixed Rate P&I, 3 yrs

-40 bps

6.55% p.a.

7.07% p.a.*

Photo from Pixabay

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Bernadette Lunas
Bernadette Lunas
Finance Journalist

Bernadette is a journalist with years of experience covering topics in macroeconomics, real estate, and lifestyle beats for notable print media organisations. She joined the InfoChoice Group in 2024, bringing her passion for writing stories that help Australians make better decisions about money.

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