Mortgage Wars Heat Up as Lenders Offer Sub-6% Rates

Homeowners in Australia may have some relief on their mortgage payments as lenders start to compete more fiercely for customers.

The Reserve Bank of Australia's decision to hold its official cash rate at 4.35% this week is a reprieve, but economists and financial markets see a good chance of another hike this year, which would add pressure on indebted households.

Lenders are starting to offer better deals, including sub-6% interest rates, as the market becomes more competitive. According to Canstar's director of data insights, Sally Tindall, 'it absolutely has been ramping up, and the momentum is increasing.'

Homeowners who refinanced or took out new loans during the 2022 mortgage wars may remember generous cashback offers from big four banks. However, this time it's a more subdued competition.