What’s a competitive rate right now? Nearly 50 lenders offer variable rates below 6%

Great news! Homeowners can breathe a sigh of relief, with the Reserve Bank of Australia (RBA) keeping the cash rate on hold in August. But just because the cash rate is sitting tight, doesn’t mean you have to.

As many as 49 different lenders are now offering variable interest rates starting with a 5, up from 38 at the start of June, according to Canstar.

That’s a powerful incentive to check the rate you’re currently paying.

If your home loan rate isn’t in the very low 6s or below, you could be paying too much.

Here’s why so many lenders are cutting their rates right now – and how you may be able to benefit.

Why are so many lenders cutting their rates?

Demand for home loans has softened in recent months, says credit reporting agency Equifax.

This follows rate rises earlier in the year, coupled with tax reforms relating to investment properties, which have contributed to a slower housing market.

The upshot is that lenders are facing stiff competition in the mortgage market.

And it’s a win for homeowners, with a growing number of lenders sharpening their loan rates as they battle it out for a bigger slice of the home loan pie.

The average loan rate versus a competitive rate

It’s always good to know how your home loan rate shapes up against the broader market.

As a guide, today’s average variable rate is currently 6.92%.

But why settle for average when you may potentially be able to pay less?

Dozens of lenders now offer variable rates below 6.0% – and in some cases as low as 5.69% – according to Canstar.

The rate difference may seem small but it can pack a big punch.

On a mortgage of several hundred thousand dollars, even a small reduction in your loan rate can lower monthly repayments – and deliver big savings over the life of your loan.

The fine print of home loan rates below 6%

Each lender has their own terms and conditions.

However, the common thread when it comes to loans with a variable rate below 6% is that you will usually need a deposit (or existing home equity) worth at least 10%, and more typically 20%, of your home’s value.

Some lenders impose even tighter loan-to-value ratios.

With a number of below 6% loans, you may need a deposit or equity as high as 30%, or even 40%, of your home’s value.

This is why it’s so important to talk to us. We can pinpoint which loans may be suitable for your needs and circumstances.

Why act now?

Homeowners have scored a reprieve from rate hikes – at least until the next rate decision in September.

Even so, the RBA has not ruled out more rate hikes in the future.

If rates do head higher, it could mean a fresh round of belt-tightening.

For instance, a rate rise of just 0.25% could add around $120 to the monthly repayments on an average $735,000 loan.

That’s not exactly loose change.

One smart move for borrowers is to consider preparing for another hike by seeking out a personalised rate cut.

Contact us today to find out if you may be eligible to switch to a lower rate, and start saving on repayments sooner rather than later.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Was your offset account flagged in the ASIC investigation?

So it turns out some mortgage offset accounts haven’t been working as intended, according to a recent investigation. Here’s how to check if your home loan offset account has actually been helping you save.

Offset accounts are popular among Australian borrowers, with more than one-in-two (55%) home loans now having an offset.

If that sounds like you, chances are you may be concerned about a recent investigation by the Australian Securities and Investments Commission (ASIC) that identified problems with some offset accounts.

To help relieve any worries you may have, we reveal the banks ASIC reviewed, the main problem areas, and what you can do to be sure your offset account is helping you save on loan interest.

How home loan offsets work

An offset account is an everyday transaction account linked to your home loan.

The offset account typically works like a normal account, letting you make deposits and withdrawals any time.

But instead of earning interest on the offset account, the balance of the account is deducted from – or ‘offset’ against – your mortgage when loan interest is calculated.

For example, if you have $600,000 remaining on your mortgage, and $50,000 sitting in the offset account, loan interest charges will be calculated on $550,000 rather than $600,000.

As your loan repayments stay the same, more of each repayment goes towards paying down the loan, rather than paying interest.

In this way, an offset account can help you clear the home loan slate sooner, and reduce the total interest you pay.

What ASIC found

As a mark of how popular offset home loans are, homeowners currently have around $349.1 billion sitting in offset accounts – a figure that’s risen 28% in the past two years.

This growth prompted ASIC to look at how offset accounts are managed across eight lenders – AMP Bank, ANZ, Commonwealth Bank, Westpac, Macquarie Bank, ING Bank, HSBC and Credit Union Australia (now Great Southern Bank).

Together, these lenders make up about 70% of the mortgage market.

ASIC’s review picked up several issues, but the majority (55%) of issues identified related to unlinked offset accounts.

This is where an offset account was opened, but never linked to the borrower’s home loan.

This means affected borrowers paid more in loan interest than they should have.

Meanwhile, a further 22% of issues identified related to offset accounts not being opened when they should have been.

What are banks doing to fix the problem?

Lenders have already paid over $55 million in customer compensation for offset account failures.

ASIC expects more compensation to be paid following its review.

In addition, ASIC has put all lenders on notice to sharpen their systems, and has warned it will continue to monitor offset accounts.

What can you do?

The ASIC report didn’t say exactly how many home loans were affected by offset account failures, nor did it say which of the eight lenders had the poorest track record.

However, the Australian Banking Association says problems were identified in “just hundreds” of the loans reviewed.

Still, that may be cold comfort if you’re affected.

The good news is that there are simple steps you can – and should – take to check if your offset account is working as it should.

A quick check is especially important if your loan has recently changed.

ASIC found problems with offset accounts were most likely to occur when a homeowner refinanced their loan or came off a fixed rate.

At this point, the link to an offset account can be broken, and you may need to contact your bank to re-set the link.

How to check if your offset account is working

To check if your offset account is linked to your loan, login to your banking app or online banking portal.

Click on your home loan account.

Then look for a section named ‘Manage’, ‘Offset Accounts’, or ‘Account Details’. This should show the account number of your linked account/s.

Or, take a look at your latest home loan statement.

It may display the account number of your linked offset account/s alongside the loan details, or in the section showing how loan interest was calculated.

If you are unsure, contact us and we’ll help you confirm.

We’re here to help

An offset account can help you save on interest.

But it may not be right for everyone.

Call us to decide if an offset account could meet your needs, or if a standard loan may be a more suitable choice.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

How to avoid this common home buyer trap

Waiting for home prices to ‘bottom out’ before buying may seem like a smart strategy but it could work against you. Here are the risks of holding out and hoping for lower prices.

It’s no secret that some of the heat is coming out of the property market.

Home buyers are now under less pressure to make a rushed decision, and more homes are coming onto the market, giving buyers greater choice.

But holding off and waiting for prices to reach a low point may be a high-risk strategy – and it could work against you.

We look at the potential pitfalls of trying to time the market with the aim of buying when prices are lowest.

Prices are cooling – not tanking

First, a quick recap of what’s happening in the property market.

Home prices are shifting downward or levelling off in some areas, mainly as a result of interest rate pressures, stretched affordability, and tighter investor tax rules.

But these are far from ‘fire sale’ conditions.

As a guide, June saw values fall in Sydney (down 1.2%), Melbourne (1.0%) and Canberra (0.6%), Cotality data shows.

However, prices continued to climb across Brisbane (up 0.3%), Perth (0.7%), Darwin (1.4%) and Hobart (0.6%) as well as regional markets (up 0.3%). In Adelaide values held steady for the month.

How home values move in the months ahead is unclear. And frankly, not even the experts agree on this.

What we can say is that no one rings a bell to announce that prices have bottomed out.

And this is where those who put buying plans on the backburner with the expectation of further price falls can face key risks.

It can mean facing more competition if other buyers pile into the “weak” market, potentially forcing prices to rise again.

It may also mean missing out on a property that ticks all your boxes, just because you think you could get something a bit cheaper in a few months.

The risks of trying to outsmart the market

Right now, we are seeing a variety of property price predictions.

But past events have shown that forecasts can be inaccurate, sometimes wildly so.

In the early days of COVID, for instance, some tipsters suggested property values could drop by 10%, or even 20%.

In reality, home prices rose 24.6% within two years of the start of the pandemic.

Clearly, the situation is very different today.

But the basic rule still holds – we usually only know that home prices have reached a low point after the event.

The thing is, several of the main factors that have helped drive home prices higher in recent times are still in play today.

Australia still faces a shortage of homes for people to live in. And our population continues to grow.

The upshot is that holding out with the aim of buying when prices are at their lowest may sound like a sensible strategy.

But it’s a lot easier said than done, and it often relies more on good luck than good timing.

Focus on what you can control

The past five years have seen home prices nationally increase by more than 34%.  

Those sorts of long term gains could eclipse the short term savings of today’s softer market.

So, instead of trying to second guess the market, it can be worth focusing on what you can control – and that’s your own home buying plans.

As mentioned, today’s market offers improved choice, and sellers who may be more open to negotiating on price.

Both are a plus for home buyers.

Talk to us today. You could be home loan-ready right now, and that could see you benefit from today’s more buyer-friendly market.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Great news for buyers: property listings spike, FOMO dials down

Things are looking up for homebuyers. New listings are on the rise, and that can mean more choice and less FOMO pressure for buyers. Here’s how the shift in today’s market could benefit your homebuying plans.

It wasn’t so long ago that FOMO (‘fear of missing out’) was a driving force in Australia’s housing market.

Property listings were at multi-year lows, prices were rising rapidly, and a report by Finder revealed almost two-in-five first homebuyers had purchased a property based on concerns they’d be priced out of the market.

Today, the FOMO factor has largely faded away. And that’s a plus for homebuyers.

We look at how the market has shifted, and why today’s homebuyers could be well-placed to take advantage of opportunities we haven’t seen for some time.

More homes listed for sale

As recently as early 2026, homebuyers faced a tight supply of properties listed for sale.

In January, for example, the number of homes advertised for sale was 25% below the 5-year average.  

The dial has shifted dramatically though, with new listings up 13.3% nationally in June 2026 compared to 12 months ago.

This likely reflects property owners looking to cash in on the significant price gains of recent years, according to realestate.com.au.

Whatever the cause, it seems buyers now have more properties to choose from, and that may well increase your chances of finding a home that ticks all your boxes.

Fewer properties being sold at auction

Auction clearance rates have fallen to the lowest level since 2020.

With fewer homes being sold at auction, we’re seeing a growing preference for private treaty sales.

The beauty of private treaty sales is that they can give buyers more scope to negotiate directly with the seller.

A tip: having your home loan pre-approved can potentially give you extra leverage to negotiate on price.

Talk to us about pre-approval – it can let sellers know you’re a serious buyer.

Buyers face less competition

Earlier in 2026, investors accounted for two-in-five new mortgages.

However, tax changes announced in the Federal budget are set to reduce this.

Westpac expects the tax reforms to drive a “sharp and sustained pull-back” in investor demand.

That’s a plus for homebuyers who are likely to face less competition from investors, which could further strengthen their negotiating clout with sellers.

Buyers are scoring bigger discounts

In more good news for homebuyers, sellers are increasingly open to discounting.

And who doesn’t love a discount, especially on a purchase worth several hundreds of thousands of dollars?

Across the nation’s capitals, the median discount on sale has climbed to 3.6%, up from 3.0% in March.

Regional homebuyers are looking at a median discount of about 3.5%.

These discounts may look small, but they can add up quickly.

On the median home value of $903,000 nationally, a 3.6% discount could see buyers save more than $32,000.

‍Farewell FOMO, hello buyer opportunities

Buying a home is one of the biggest decisions many of us will ever make, and it definitely shouldn’t be based on FOMO.

Buying based on a sense of urgency can mean compromising on your choice of home or stretching your buying budget.

With many of the drivers of FOMO easing, today’s homebuyers may have more time to research the market and greater scope to negotiate on price.

Even so, there’s no room for complacency.

Well-priced homes in good locations have a habit of attracting plenty of buyers, and holding out waiting for the market to fall could lead to disappointment.  

Talk to us to see how you could benefit from a market that – for now at least – seems to be working in many buyers’ favour.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Lenders cut rates as competition heats up

The Reserve Bank may have kept rates on hold in June, but a growing number of lenders have cut their home loan interest rates. This could be your sign to review your current loan.

Here’s news that should be music to the ears of Australian home owners.

Despite the Reserve Bank of Australia (RBA) keeping the cash rate steady in June, almost a dozen lenders have cut their variable home loan rates in recent weeks.

As a result, there are now 40 lenders offering at least one variable rate under 6%, Canstar reports.

But there’s a catch: these lower rates are usually only available to new borrowers.

That means now might be the time to get in touch with us, because you too could become a ‘new’ customer by switching to a different lender.

Here’s a closer look at what’s going on.

Why are lenders slicing their rates?

Competition in the home loan market is intense right now.

Over 100 providers – from the big banks through to mid-tier and regional banks, as well as dozens of non-bank lenders – are all competing for your business.

And competition has especially heated up following proposed tax changes in the federal budget that have impacted investor demand.

In today’s highly contested market, one way to attract new customers is by offering a competitive mortgage rate.

The upshot is that rate savings may be up for grabs for home owners who refinance with a new lender.

No sign of an official rate cut any time soon

Borrowers who wait for the RBA to start cutting interest rates could be left disappointed.

Several major banks, including ANZ and CommBank, believe it could be some time before we see the official cash rate fall, potentially well into next year.

In fact, Westpac is forecasting a rate hike in September, potentially as early as August.

Refinancers may be rewarded with valuable interest savings

The RBA may have hit ‘pause’ on rates, but that doesn’t mean you should too.

As more lenders lower rates for new customers, home owners who stick with their old loan may be left paying an uncompetitive rate.

And that could mean paying more in interest than necessary.

By way of example, Canstar found a home owner who’s had the same loan for the past five years is likely to be paying a rate of 6.98%.

Assuming that same borrower owed $600,000 on their mortgage, with 25 years remaining on the loan term, switching to an interest rate under 6% could save at least $10,713 in interest over the next two years.

And that’s after allowing for possible refinancing costs.

Talk to us to know how your loan rate shapes up

Stop guessing, and start knowing for sure whether you are paying a competitive loan rate.

Give us a call to organise a home loan review. We can compare dozens of loan options and explain if refinancing could see you save on your mortgage interest.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.