Greater Bank and NAB launch new fixed rate cuts
- 1 to 5 year fixed rate averages are falling
- The average variable rate drops to 3.29%
- The Grande Banque lowers its 1-year fixed rate to 1.69% (comparison rate of 3.49% *)
2021 may have barely started, but it has already been a busy year on the real estate front. Values have risen across the country and the appetite for new loans from homeowners and investors shows no signs of abating as of yet.
While borrowers may have rushed to take out new loans, lenders have been a little quieter about changing. mortgage rate.
That’s not to say there hasn’t been any action yet. As detailed in the latest Mozo Banking Roundup, there have been a number of recent cuts in fixed and variable rate offers from lenders large and small.
So which lenders have lowered their rates in recent weeks? What are the lowest rates on the market? And how does your own rate compare to our averages? Read on.
Fixed mortgage rate
Lenders keep dropping fixed rates! This has been the major theme of the past year, and it has played out again recently. In fact, enough declines took place in February to push down the average fixed rates at 1, 2, 3, 4, and 5 years in the Mozo database (see table below).
Looking more closely at these cuts, the major change in recent times has been the big bank decision to reduce its fixed-rate mortgage offers to 1 year (down 20 basis points) and to 2 years (down 10 basis points).
As a result, the 1-year fixed rate of 1.69% (comparison rate of 3.49% *) offered to owner-occupiers with the Real estate loan at favorable rate (fixed) is now the highest market rate in our database for this term. Other changes to note:
- NAB reduced the number of fixed offers from 5 to 55 basis points, which means that the 3-year fixed rate of its tailor-made mortgage is now at 1.98% (comparison rate of 3.83% *) .
- HSBC reduced its packaging from 10 to 21 basis points Fixed rate mortgage offer, which makes the 2-year fixed rate of 1.88% (comparison rate 2.86% *) the lowest rate available.
- For investors, Police credit union withdrew 10 basis points from its fixed-rate mortgage, which brings the available 3-year fixed rate down to just 1.99% (comparison rate of 3.37% *)
To put all of these changes into perspective, here’s a look at the lowest fixed rate offers ^^ from the Mozo database along with our fixed rate averages, as of March 1, 2021:
|Term||Leader rate||Fixed rate||Average|
|1 year||Big Bank||1.69% (comparison rate of 3.50% *)||2.34%|
|2 years||TIC Knock||1.89% (comparison rate of 2.15% *)||2.32%|
|3 years||UBank||1.75% (comparison rate 2.20% *)||2.35%|
|4 years||Bank of Melbourne and St. George||1.94% (comparison rate of 3.21% *)||2.36%|
|5 years||Aussie||1.99% (comparison rate of 2.37% *)||2.64%|
Variable mortgage rates
Things were generally calm on the floating rate again, although there were enough rate cuts during the month of February to precipitate a drop in our average variable rate from 3.30% to 3.29%. Some of the most notable changes include:
- In addition to fixed rate cuts, HSBC was also busy reducing variable rates. The bank has withdrawn 10 to 31 basis points from some offers, including 15 basis points on its Home equity loan which is now at a competitive level of 2.44% (comparison rate of 2.45% *) for owner-occupiers.
- AUC reduced by 20 basis points the rate of its variable Accelerate home loan, which means that the lowest rate currently available on the offer is 2.94% (comparison rate of 2.99% *).
- To finish, Heritage Bank reduced its Discount Variable Home Loan rates by 9 basis points, leaving the lowest rate available at 2.59% (comparison rate of 2.99% *).
The landscape at the more competitive end of the variable rate spectrum, however, remains relatively unchanged. Here’s a look at the five lowest variable rates ^^ available to homeowners in the Mozo database as of March 1, 2021:
|1.99% (comparison rate of 2.05% *)||Reduce home loans||Super saver variable|
|2.09% (comparison rate of 2.09% *)||Pacific Mortgage Group||Standard variable|
|2.14% (comparison rate of 2.19% *)||Home star||Essential stars|
|2.17% (comparison rate of 2.17% *)||Freedom Ready||Variable real estate loan|
|2.17% (comparison rate 2.20% *)||Home loans good||Well balanced|
For even more information on the latest rate movements and product changes, visit our mortgage comparator center.
Or if you have realized that your own rate may be a little over the top, why not start looking for a higher rate by checking out the competitive loans in the table below.
^^ Based on an owner-occupier paying principal and interest on a loan of $ 400,000 with an LVR of 80%. For more information on average mortgage rates, see our mortgage statistics page.
^ See information on the Mozo Experts Choice Home Loan Awards
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