Mortgage war heats up as banks compete for customers by lowering variable rates

Competition increases in the home loan market

Competition across Australia’s mortgage market is increasing as lenders reduce variable home loan rates in an effort to attract new customers.

The rate reductions come as lenders compete for a smaller pool of home loan customers, creating more competition across the mortgage market.

Lenders reduce mortgage rates

A number of lenders have reduced rates across their home loan products in recent months.

The changes have primarily focused on attracting new borrowers, with some lenders offering more competitive rates for customers taking out a new loan or refinancing an existing mortgage.

Existing customers may not automatically receive the same rates available to new borrowers.

Borrowers review their home loans

The increased competition comes at a time when borrowing costs remain elevated and conditions across the property market have softened.

Some borrowers are reviewing their existing home loans and refinancing as different rates become available across the market.

Home loan rates can vary depending on factors including the loan type, repayment structure, property purpose and individual borrower circumstances.