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Lenders are expected to battle over owner-occupied home loans as the spring property season begins, with over 50 rate changes in the past month alone, according to comparison site Mozo.com.au.
Mozo marketing director Kirsty Lamont said 12 lenders have made rate cuts specifically targeted at owner-occupiers, while 11 increased rates on investor loans.
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Cuts to owner-occupier loans have averaged 12 basis points in the past month, with the average owner-occupier rate now at 4.69 per cent – 55 basis points lower than it was this time last year.
Meanwhile, the average interest rate for investor loans is 4.81 per cent – 43 basis points lower than this time last year.
“Lenders are wanting to bridge the gap left by the slower growth in investor lending and owner-occupiers will be the big winners,” Ms Lamont said.
Mozo data also showed that owner-occupiers are better off by $100 per month on today’s lowest home loan rate (3.94 per cent for Homestar’s Refinance Saver Loan) compared to the lowest rate one year ago (4.54 per cent).
“We’re also seeing cashback offers as an extra incentive. So far, six lenders are offering cashback deals of between $1,000 and $2,000 to refinancers,” Ms Lamont said.
“We’re expecting this trend of lower rates and special offers to increase as the spring buying season ramps up through to the end of the year.”
[Related: FHBs to spend up to 14 years saving]
