That's according to Commonwealth Bank's (CBA) latest Household Spending Intentions (HSI) series, which shows intentions to buy a home are at its highest level since 2015. 

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.

Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.04% p.a.
6.06% p.a.
Principal & Interest
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5.99% p.a.
5.90% p.a.
Principal & Interest
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  • Unlimited redraws & additional repayments. LVR <80%
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6.14% p.a.
6.16% p.a.
Principal & Interest
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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 . View disclaimer.

Based on CBA's analysis of Google searches and trends, as well as home loan applications, it expects the housing market to continue to be a key source of support for the economic rebound in 2021, thanks mainly to ultra-low interest rates. 

That's while house prices are rising by the highest margin in 17 years, which are now beginning to weigh on otherwise expanding consumer confidence

This is likely to continue, with CBA and also Westpac predicting house prices rises of 16% and 20% over the next two years respectively. 

Indeed, retail spending intentions softened in February 2021, despite recent rebounds in actual turnover figures

CBA saw strong increases in spending in a range of consumer goods, including clothing, groceries, furniture, digital apps, electronics, hobbies and toy stores, pets and more.

Weaknesses however were seen in dry cleaners and tailors, while travel spending intentions remained largely unchanged.

Weakness is still evident in spending on airlines, cruise ships, hotels & motels, timeshares, travel agents, car rentals and bus lines, although CBA expects the recent half-priced flights package (announced after these results were taken) to boost this spending. 

Overall results were mixed across the seven categories tracked, which also includes Motor Vehicles, Entertainment, Education, and Health and Fitness. 

“Fourth quarter data showed that economic growth improved further at the end of 2020, with a “V-shaped” recovery and we now expect that the Australian economy will grow by 4.4 per cent in 2021,” CBA Chief Economist Stephen Halmarick said. 

There were some interesting data points in this month's HSI release that occurred due to the changed landscape from COVID. 

Car buying intentions for example are lower than February 2020, despite a modest increase last month, as the trend of working from home reduces the need to commute. 

Entertainment spending meanwhile has increased substantially from 2020, not just on in-home entertainment like TV services, but in outdoor services as well like restaurants, movies and bowling alleys. 

See also: Vehicle purchases increase 31.8% in December 2020


CBA HSI data for (top left to bottom right): Home buying, retail spending, motor vehicles, and travel.

Image by Agover from Pixabay 

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