Commonwealth Bank has a competitive fixed rate product. Picture: John Gass
The RBA may have shut up shop when it comes to rate cuts, but banks haven’t, with Canstar revealing two banks have cut variable rates in the last week, while six banks have cut fixed rates across the past fortnight.
Geelong Bank cut a variable rate product to now jump to the lowest variable rate on the market at 4.99 per cent.
G & C Mutual bank and Horizon Bank also have 4.99 per cent variable rates, but only for first home buyers.
No lenders hiked their variable rates over the past fortnight.
MORE:Banks go rogue with $5k handout
The average variable rate of those monitored by Canstar is now 5.52 per cent, while 4.99 per cent are the lowest for both refinancers and first home buyers.
There are 47 lenders currently offering at least one variable rate under 5.25 per cent.
Lowest variable rates
4.99%- Geelong Bank
5.08%- in1Bank
5.14%- Pacific Mortgage Group, People’s Choice, Heritage Bank, Mortgage House, Freedom Lend, Australian Mutual Bank.
5.18%- Bank of China
5.19%- unloan, Qudos Bank, The Mutual Bank, Greater Bank, Northern Inland, The Capricornian, Queensland Country Bank, Virgin Money, NRMA Insurance
Bank competition is still forcing some rate cuts. Picture: Damian Shaw
It’s a different story for fixed rates, with eight banks hiking their fixed rate products over the past two weeks.
Lenders such as Westpac (and its subsidiaries), Macquarie Bank, Heritage Bank, People’s Choice and Queensland Country Bank were among those to raise fixed rates.
However, six banks did cut fixed rates over the same period, going against a general rising trend for fixed rates in the wake of the most recent RBA decision to keep the cash rate on hold.
Reduce Home Loans, G & C Mutual, Geelong Bank, Unity Bank, Community First Bank and Illawarra Credit Union were the banks to cut.
WARNING:1 in 3 Aus homes have deadly find
The average short-term fixed rate (three years or less) for owner-occupiers is now 5.20 per cent, while the lowest is Pacific Mortgage Group’s 4.84 per cent (one-year term).
Big four banks CBA is among the 42 lenders currently offering at least one fixed rate under 5 per cent, while approximately 77 per cent of lenders’ lowest rates are fixed, not variable.
Lowest fixed rates
1-year – 4.84%- Pacific Mortgage Group
2-year- 4.74%- Pacific Mortgage Group, Australian Mutual
3-year- 4.74%- Australian Mutual
4-year- 5.24%- Firefighters Mutual, Health Professionals Bank, Teachers Mutual Bank, UniBank, Freedom Lend
5-year- 5.19%- Australian Mutual
Many borrowers believe RBA rate cuts may have ended for the current cycle. Picture: Nikki Short
The news comes as ABS data revealed $65.8 billion worth of mortgages switched to a different lender in the September 2025 quarter.
Canstar.com.au analysis showed this equated to almost half a million dollars worth of mortgages refinanced every minute.
FAIL: Aussie lawns ordered to be ripped out
The latest ABS Lending Indicators showed refinancing activity jumped by $3 billion compared with the June quarter. The surge followed the RBA cash rate cuts in February, May and August, which are likely to have encouraged borrowers to reassess their loans in search of better rates and savings.
An estimated 1.4 million mortgages have been refinanced since the start of the hikes in May 2022, in seasonally adjusted terms. However, this includes some borrowers who have potentially refinanced more than once, as well as some borrowers with more than one loan.
Canstar.com.au spokesperson Laine Gordon says, “Almost half a million dollars in loans being refinanced to a new lender every minute is a jaw-dropping figure. It shows Australian borrowers are laser-focused on cutting their mortgage costs where they can.
“Record levels of new lending shows buyers are back in force, but with new loan sizes also reaching a peak, some are taking on bigger debts to secure the winning bid on their future home.
“Before you take out a loan, stress test your budget. Ask yourself if you could still manage the repayments if rates climbed by three percentage points. While that may seem unlikely today, a lot can change over the life of a 30-year mortgage.”
English (US) · 