Fixed-rate face-off heats up: Lowest home loan rates since June 2023

By Jack Dona · · 2 min read
Fact Checked
A couple relax in the sunshine on their balcony with a digital tablet, where they've just learnt about some of the lowest fixed interest rates since June 2023

South West Slopes Bank (SWSbank) has unveiled the lowest fixed rate home loan that Mozo has tracked in over a year.

The SWSbank Premium Fixed Home Loan rate comes in at 4.99% p.a. (6.15% p.a. comparison rate*) for owner-occupiers who want to fix their interest rate for 3 years.

The last time a fixed rate was this low was in June 2023, when The Capricornian still offered a 3-year fixed rate of 4.99% p.a.

SWSbank’s new offer comes in 1.17% lower than the average 3-year fixed rate in the Mozo database – 6.16% p.a.†

Until this morning, Police Credit Union led the competition for the lowest 3-year fixed rate loan, at 5.49% p.a. (6.97% comparison rate*). But SWSbank’s new offer beats it by an impressive 0.50%.

Investors aren’t missing out either, with SWSbank’s 3-year fixed investor special also coming in at a low 4.99% p.a. (6.36% p.a. comparison rate*).

This rate comes in 1.40% lower than the average 3-year fixed investor rate in the database – 6.39% p.a.††

You can read about SWSbank’s home loans here for more info.

Lenders scramble to cut fixed rates in anticipation of an RBA cash rate cut

Over the past month, the Mozo database recorded several fixed rate cuts coming from both the Big 4 and smaller lenders.

Among the cohort dropping their rates are Commbank , Great Southern Bank, HSBC, Hume Bank, Macquarie, MOVE Bank, St.George (including BankSA and Bank of Melbourne), and Westpac .

These recent interest rate cuts are likely influenced by the slow easing of headline inflation that we’ve seen over the past few months, as lenders price in a series of cash rate cuts over the next couple of years.

The Consumer Price Index (CPI) recorded a 3.7% gain in headline inflation over the year to July 2024, down from 4% in June. This now means we’re closer to reaching the Reserve Bank of Australia’s (RBA) target inflation range of 2-3%, and closer to interest rates finally coming down .

If you’re thinking about fixing your home loan, make sure you compare fixed rates and consider whether the likelihood of cash rate cuts may bring down variable rates in the next few months.

†Average fixed rate in the Mozo database, for an owner-occupied home loan at $400k, making principal and interest repayments, with <80% LVR. Correct as at 11 September 2024.

††Average fixed rate in the Mozo database, for an investment home loan at $400k, making principal and interest repayments, with <80% LVR. Correct as at 11 September 2024.