Sophie Foster
Updated 6 May 2026, 11:24am
First published 6 May 2026, 5:35pm
Homebuyers are facing a rapidly evolving mortgage market as lenders scramble amid RBA rate rises.
Seven lenders have cut rates in a market-defying move as millions of Aussie homeowners brace for a third straight mortgage hike.
The surprise shift in Canstar data comes as lenders prepare to lift borrowing costs within days, with the big four – Commonwealth Bank, National Australia Bank, ANZ Bank and Westpac – to follow the Reserve Bank of Australia’s latest 25 basis point increase from May 15.
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Canstar data insights director Sally Tindall.
ING cut its Mortgage Simplifier variable rate on May 5 by up to 0.15 percentage points, taking its lowest owner-occupier rate down to 5.74 per cent for lower loan-to-value borrowers.
Canstar data shows six other lenders have also cut at least one variable rate since April -bucking a market now heading higher.
Those lenders include Bank First, Qantas Money, Bank of Queensland, Virgin Money, Heritage Bank and People First Bank.
Their cuts range from 0.05 to 0.12 percentage points, with most targeted at specific products or borrower profiles.
Canstar data insights director Sally Tindall said the moves were a rare break from broader market behaviour.
“In the last rate hiking cycle of 2022 and 2023, we saw banks slashing new customer variable rates left, right and centre in a bid to get business in the door,” she said.
“This time around, there’s been very little of the sort, with just a handful of lenders advertising new customer rate cuts.”
“This is an anomaly as we now wait 10 or so days for the banks to hike variable rates.”
ING’s surprise move downwards on Tuesday. Source: Canstar.
Ms Tindall warned fixed rates were likely to climb further following the Reserve Bank’s decision to lift the cash rate to 4.35 per cent.
“While the Governor has said the cash rate is now in a position where they can ‘be alert now to both sides of the risks’, the central bank is certainly not ruling out further hikes – and anyone with a mortgage shouldn’t either.”
On a typical $600,000 mortgage, May’s rate hike is expected to add about $91 a month to repayments.
Combined with increases in February and March, that means borrowers are now paying around $272 extra every month.
Average variable rates are sitting at around 6.43 per cent on Canstar’s database.
The current lowest rates on Canstar’s database.
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