Australian Mortgage Rates Plummet, But Only for the Lucky Few

Australians searching for affordable fixed or variable mortgage rates have been dealt a harsh blow as lenders quietly dropped their lowest rate floors in response to fresh warnings from the Reserve Bank of Australia (RBA).

The window for rates starting at 5.69 per cent has effectively been slammed shut, leaving thousands of households facing the prospect of sub-5.70 per cent deals disappearing fast.

RBA Assistant Governor Christopher Kent warned that ongoing global uncertainties and sluggish domestic productivity growth are key threats to interest rate stability, with the possibility of rates hiking again a significant concern for borrowers.

Despite the overall pool of lenders competing under the 6 per cent mark expanding this week, the entry price has become steeper, with many lenders now offering rates from 5.79 per cent and higher.