08 Nov 2022

What Is the Best Current Mortgage Rate?

Mortgages Rate

For the fifth time in a little more than a year, the Reserve Bank of Australia (RBA) increased the cash rate, bringing it to 2.6%

There are expectations that the central bank will increase interest rates at least once more this year, and some economists believe they may continue into 2023.

All four of the main banks made the announcement that they would be boosting their variable rates to match the cash rate within a week after this month’s decision, and for the most part, the rest of the market has followed the big banks’ lead. So what does this mean for current mortgage rates?

Budgeting will be necessary for borrowers who have not fixed their loans (about 60% of the mortgage market) to deal with the sharp increase in monthly repayments. However, even those with set rates won’t always be protected from rate increases. Mortgage holders’ payments can increase by 40% if they switch to a variable rate at the going rate on the market.

Rates on average for house loans in October 2022

As of October 2022, the typical rates offered by the home loan lenders for a $400,000 loan with OO, P&I, and an LVR more than 80% are were typically as shown:

  • Variable rate: 5.16% annually, up from 4.97% at the beginning of October.
  • The Big 4 variable rate is 5.90% annually (up from 5.65% annually at the beginning of October).
  • The 1-year fixed rate is now 5.16% annually, up from 5.06% annually at the beginning of October.
  • The 2-year fixed rate is now 5.61% per year, up from 5.57% at the beginning of October.
  • 5.86% p.a. for a three-year fixed rate (up from 5.81% p.a. at the beginning of October);
  • The 4-year fixed rate is now 6.13% per year, up from 6.07% per year at the beginning of October.
  • The 5-year fixed rate is now 6.34% per year (up from 6.30% per year at the beginning of October).
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