Home loan rates continue to trend lower amid rate cut call

This came at the heels of the latest ABS wage growth data release revealing salaries in Australia increased faster than the rise in the cost of living. 

The wage price index (WPI) climbed a seasonally adjusted 4.2% over the 12 months to December, outpacing the consumer price index (CPI) at 4.1% for the first time since March 2021. 

The latest read also showed workers in Australia experienced the highest growth in their wages since March 2009, when it hit 4.2%.

Despite the possible inflationary pressures of pay rises, economists believe it won’t be enough to sway the RBA, maintaining their position that the cash rate has peaked and is on its way down.

“Near‑term pressure will still occur from enterprise agreements, but a slowing economy, rising labour market spare capacity, and disinflation will gradually weigh on nominal wage increases,” CommBank senior economist Belinda Allen said.

CommBank, along with other major industry players, continues to expect rates will be kept on hold until the first cut in the second half of the year. 

Although the RBA refrained from explicitly ruling out rate hikes, the outlook pointing to an easing cycle has led many mortgage lenders – both big and small – to drop their home loan rates.

These are those we saw moving their rates downwards this week, ending 23 February. 

ING trims fixed and variable rates

ING Bank, which currently commands the sixth and ninth largest share in Australia’s owner-occupier and investor home loan markets, slashed the rates across its various mortgage products by up to 40 basis points. 

The cuts were applied to the bank’s fixed and variable rate products, 

AMP Bank lowers home loan rates 

Similarly, AMP Bank applied as much as a 40-basis-point cut across its wide range of home loans with fixed and variable rates. 

The bank’s Professional Package offerings ending on a three-year term for both owner-occupiers and investors witnessed the biggest drop this week. 

G&C Mutual Bank moves fixed and variable rates down

Cooperative-turned-member-owned bank G&C Mutual Bank joined other lenders in dropping fixed and variable home loan rates this week. 

The rates of the bank’s special offer Momentum home loans, available for existing mortgage holders, were slashed by 29 basis points. 

G&C also applied a 29-basis-point cut to its special offer home loan exclusively available for first home buyers. 

Tiimely Home drops fixed rates by 56 basis points

Digital mortgage lender Timely Home (formerly tic:toc) trimmed the fixed rates offered on its home loan products. 

Widespread cuts, topping at 56 basis points, were applied across its range of investor and owner-occupier home loans.

Other movers:

Several other lenders also lowered the rates on their home loan products with fixed terms. 

• Unity Bank joins the fixed rate cutting action with 80 bps cuts across its products.
• Horizon Bank slashes fixed interest rates by 20 bps.
• AMO Group cuts rates on its fixed home loans by as much as 55 bps.
• Adelaide Bank trims fixed rates by up to 20 bps.
• Aussie drops fixed interest rates by up to 20 bps.
• Bank First cuts fixed rates by as much as 35 bps.
• Mortgage House trims fixed rates by up to 55 bps.

Read more: Home Loans News Home Loan Basics Refinancing Home loan rate changes

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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