Findings from Aussie - part of the Lendi Group - revealed that despite the cash rate staying at 0.10% since November 2020, more than 1,000 rate changes to home loans have taken effect.

There has recently been a strong uptick in lenders increasing their fixed rates, according to Aussie's research.

This comes after recent findings revealed a 'worrying' complacency amongst Australian mortgage holders towards refinancing, with 62% being aware of its benefits but 54% never refinancing before.

According to David Hyman, CEO of Lendi Group, remaining complacent will likely see millions of people lose their chance to 'future proof' their home loan before interest rates rise once again.

"It seems a majority of Australian mortgage holders have been gaining a false sense of security, every time the RBA cash rate stays steady – failing to realise lenders have no obligation to adhere to this when setting their rates," Mr Hyman said.

"All of the talk is about the cash rate not rising for some time to come, but in reality, the steadiness of the cash rate does not prevent lenders from increasing interest rates."

Refinancing hits record high but concerns prevail

Despite the Australian Bureau of Statistics (ABS) recently revealing that refinancing hit a record high of $17.2 billion, Mr Hyman said this only represents 7% of home loans being refinanced in the past year.

"This lack of action could cost Australians down the line, when they finally come to the realisisation that the low rates they once overlooked are no longer on offer," he said.

Mr Hyman said that history has shown interest rate don't stay low forever, and that mortgage holders should prepare for this before they find that they have 'missed the moment'.

"A home loan is not a short-term commitment - it's a long-term investment," Mr Hyman said.

"If you are unsure about the process or time poor, speak to an expert who can look at how your current rate compares to what’s on offer, and ultimately help you future proof your home loan by capitalising on the favourable rates that are in the market right now."

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Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Rates
Features
Fees
Other
Lender
VariableMore details
Online ExclusiveUp To $4K Cashback Includes NOV RBA Rate Increase
  • Immediate cashback upon settlement
  • $2000 for loans up to $700,000
  • $4000 for loans over $700,000
Online ExclusiveUp To $4K Cashback Includes NOV RBA Rate Increase

loans.com.au – Variable Basic Cashback Home Loan (Principal and Interest) (LVR < 70%)

  • Immediate cashback upon settlement
  • $2000 for loans up to $700,000
  • $4000 for loans over $700,000
More details
VariableMore details
Refinance OnlyApply In Minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Refinance OnlyApply In Minutes

Unloan – Variable Rate Home Loan – Refinance Only

  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
More details
VariableMore details
  • Up is 100% owned by Bendigo Bank.
  • Up to 50 offset accounts
  • New joiners get $10 by signing up to the app using code UPHOMESAVINGS. (T&Cs apply)

Up – Up Home Variable (Principal & Interest) (LVR ≤ 90)

  • Up is 100% owned by Bendigo Bank.
  • Up to 50 offset accounts
  • New joiners get $10 by signing up to the app using code UPHOMESAVINGS. (T&Cs apply)
More details
  • Immediate cashback upon settlement
  • $2000 for loans up to $700,000
  • $4000 for loans over $700,000

More details
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 December 8, 2023. View disclaimer.

Image by Bruno Nascimento



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