This week saw selective movements in the mortgage market, with AMP leading the charge with home loan rate changes. 

Meanwhile, mutual bank The Capricornian unveiled a two-year fixed rate of 5.74% – not far off what appears to be the lowest rate available on two-year fixed rate terms (5.49% p.a. from Newcastle Permanent).

The market is currently waiting with baited breath for the latest quarterly inflation figures, due to be released on Wednesday.

The Australian Bureau of Statistics' (ABS) quarterly Consumer Price Index (CPI) offers a more comprehensive look at the state of the economy than its monthly counterparts – and some experts are hopeful for a notable easing.

Economists from Australia's major banks believe that headline inflation may have returned to the Reserve Bank of Australia's (RBA) target range of 2% to 3% during the September quarter.

Such an inflation read might signal that we're on the precipice of a long-awaited cash rate cut. 

However, the central bank remains more focused on underlying inflation, which is expected to remain above 3%.

With anticipation building around inflation figures, here's a closer look at the week's notable home loan rate movements:

AMP shakes up variable home loan interest rates

AMP was one of few lenders making home loan rate changes this week, dropping some of its variable rates while lifting others.

For owner-occupiers, the bank made changes to its Offset mortgage lineup for those borrowing between $500,000 and $1 million.

New rates are as follows:

LVR Change New rate Comparison rate*
≤80% +5bp 6.24% 6.59%
80-90% +5bp 6.44% 6.79%

Investors, on the other hand, realised a number of rate cuts.

Changes for those making principal and interest repayments are as follows:

Product LVR Change New rate Comparison rate*
Essential Home Loan (for those borrowing at least $750,000) ≤60% -10bp 6.39% 6.42%
60-80% -5bp 6.44% 6.47%
80-90% +10bp 6.59% 6.62%
Offset Home Loan (for those borrowing $500,000-$1 million) 60-80% +5bp 6.44% 6.79%
<90% +5bp 6.59% 6.94%

The Capricornian cuts fixed rates by up to 83 basis points

The Capricornian Credit Union also slashed two year fixed rates to as low as 5.74% p.a. for owner-occupiers.

The following new rates are available on the mutual bank's Premium Choice home loan product:

LVR Change New rate Comparison rate*
Owner-occupier <95% -63bp 5.74% 6.63%
Investor <80% -40bp 6.09% 6.86%
>80% -40bp 6.29% 6.90%

Other movers

  • The Mac dropped fixed rates for investors and owner-occupiers by up to 40 basis points

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LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkComparePromoted ProductDisclosure
6.04% p.a.
6.06% p.a.
$3,011
Principal & Interest
Variable
$0
$530
90%
4.6 STAR CUSTOMER RATINGS
  • Available for purchase or refinance, min10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Dedicated loan specialist throughout the loan application.
 Disclosure
5.99% p.a.
5.90% p.a.
$2,995
Principal & Interest
Variable
$0
$0
80%
  • A low-rate variable home loan from a 100% online lender.
  • Backed by the Commonwealth Bank.
 Disclosure
6.14% p.a.
6.16% p.a.
$3,043
Principal & Interest
Variable
$0
$350
60%
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of .

Important Information and Comparison Rate Warning

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