Who is still offering low-rate mortgages after the November 2022 rate hike?


The latest hike in the Reserve Bank of Australia’s (RBA) national cash rate could continue to weigh on homeowners with higher interest payments and restrict first-time home buyers by reducing maximum loan amounts. Despite these rising rates, some mortgage lenders still offer relatively low interest rates to certain borrowers.

The RBA chose to raise the national cash rate by 25 basis points in November 2022. Combined with two further 25 basis point hikes in October and May 2022 and four 50 basis point rate hikes, the national cash rate is fell from its all-time high of 0.10% to 2.85% – the highest cash rate since April 2013.

Which lenders offer the lowest rates?

While most mortgage lenders will eventually pass on the RBA’s cash rate hike, some of the lowest home loan interest rates in the RateCity database can be found from:

You can find out which mortgage lenders have announced they are raising their interest rates for home loans and savings accounts with RateCity’s RBA Rate Tracker.

Who can apply for a low-interest mortgage?

Not every low rate home loan will be an ideal choice for every borrower. To qualify for some of the lowest home loan rates, you may also need to meet specific eligibility criteria, such as having a low loan-to-value (LVR) ratio. This may mean having to refinance a loan for an existing property or applying for a loan with the help of a guarantor.

It is important to remember that a home loan is not limited to its interest rate. Sometimes fees, features and benefits can affect the value of a home loan to you and your household’s financial situation.

Do rate hikes mean a recession is coming?

With Australian inflation now expected to reach 8% before the end of 2022, there is a good chance that interest rates will rise in the future in an attempt to slow it down. RBA Governor Dr Philip Lowe recently said that allowing the ‘evil’ of inflation to be with us longer would require even higher interest rates later on, raising the risk of a severe recession and a sharp rise in unemployment.

“The Board’s base case remains that interest rates will need to rise further to bring inflation back to target and our forecasts have been prepared on that basis. However, we are not on a predefined path. If we have to move to bigger increases again to ensure that inflation is back on target, we will.

And while tough economic conditions around the world may increase the risk of a global recession, Australian Treasurer Jim Chalmers said the nation was in a strong position, saying “we don’t expect the Australian economy is shrinking”.

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