Canstar warns borrowers to prepare before rates climb further
Canstar's latest Weekly Rate Wrap-up puts the average variable rate for owner-occupiers on principal and interest at 6.61%, with Pacific Mortgage Group still offering the database's lowest rate at 5.69%.
Only two rates across the database currently sit below 5.75%, a figure that has held steady. Movement elsewhere was modest: two lenders cut a combined 10 owner-occupier and investor variable rates by an average of 0.05%, while five lenders increased 115 fixed rates by an average of 0.27%.
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Prepare for what's next, Canstar says
Canstar data insights director Sally Tindall's (pictured) advice to borrowers was blunt: "Prepare for a hike, because one could be waiting in the wings."
Tindall said this is prudent planning regardless of the eventual outcome, noting that 50 lenders currently offer variable rates under 6% for owner-occupiers.
A quiet week by design
Tindall said the week's calm reflects genuine uncertainty over the RBA's next move rather than a settled outlook.
"Economists might need access to a crystal ball this month," she said, adding that when a cash rate change looks like a foregone conclusion, lenders typically move early – particularly on fixed rates. That uncertainty has narrowed in recent days, with all four major banks now forecasting further rate rises later this year.
Tindall noted this week's two variable rate cuts reflect competitive pressure rather than any read on monetary policy. That competitive dynamic isn't new – the ongoing rate war between lenders chasing new customers has continued for months, with more lenders now offering sub-6% variable deals to attract new business.
For brokers, the data suggests this is a moment for client conversations grounded in caution rather than urgency, with refinancing options still plentiful despite the wait-and-see mood among lenders.
