Sydney, Australia – In a bold move signalling heightened mortgage competition, fifteen Australian lenders have slashed their variable home loan rates since April, setting the stage for further rate drops ahead of next week's crucial Reserve Bank of Australia (RBA) meeting.
According to Canstar’s latest rate tracking data, some of the nation's leading banks — including Commonwealth Bank, Westpac, Bank of Queensland, AMP Bank, Macquarie Bank, and St.George — are now advertising lower rates for new customers. Other lenders joining the rate-cut trend include Newcastle Permanent, Greater Bank, Aussie, Bank of China, Bank of Melbourne, BankSA, BankVic, Defence Bank, and Summerland Bank.
Currently, the lowest variable rate available on the market stands at 5.59 per cent. Canstar reports that 35 lenders are now offering at least one variable product below 5.75 per cent, providing a glimmer of relief for borrowers amid ongoing cost-of-living pressures.
With the RBA board set to meet this coming Tuesday, market analysts anticipate a further wave of competition. Canstar predicts that more than 30 lenders may offer at least one variable rate under 5.50 per cent by next week.
“The competition for mortgage customers is intensifying, and we’re seeing a real push by lenders to attract refinancers and new borrowers,” said Canstar’s finance expert. “The lowest rates could dip below 5.40 per cent, depending on the RBA’s next move.”
Meanwhile, the average existing owner-occupier variable rate is expected to ease to 5.81 per cent, potentially delivering much-needed financial breathing room for Australian households.
The rate reductions follow the RBA’s cash rate cut in February and reflect growing confidence in stabilising inflation, despite lingering global economic uncertainties.
The RBA’s monetary policy decision on Tuesday will be closely watched by homeowners, economists, and financial institutions alike, as the housing market and broader economy continue to navigate a delicate balancing act.
