RBA Rate Hike Sparks Hunt for Better Home Loan Rates
The Reserve Bank of Australia's latest interest rate hike has prompted some lenders to offer rates close to 6%, leading mortgage holders to consider switching banks for a better home loan rate.
According to Canstar data, among the big four banks, Westpac is offering the lowest variable rate at 6.24%. Dozens of smaller lenders are offering lower rates than the big four, with just two lenders expected to offer variable rates under 6% once Tuesday's rate increase is passed on.
For someone with a $600,000 loan and 25 years left in their term, switching from the average rate to one of these lower rates could save around $180 per month. However, professionals warn that it's getting harder to find big discounts, and borrowers may have better luck negotiating a lower rate by calling up their own bank.
Some lenders are offering fixed rates below 6%, mostly hovering at 5.99%. Record refinancing has been seen in the first half of 2026, with $65bn worth of external refinancing reported. However, falling house prices mean that many Australians will be locked out from refinancing due to high loan-to-value ratios.