My current interest rate is at 5.99% with Ubank with about $180k owing.
Was it supposed to go down?
What Is Your Homeloan Interest Rate in 2025?
MonkEE on 23/02/2025 - 09:27
Last edited 23/02/2025 - 11:54 by 1 other user
Last edited 23/02/2025 - 11:54 by 1 other user
Comments
Mine is 6.29 and thats the best rate I've been able to get, no idea how people are getting rates cheaper.
@Brick Tamland, I'm more than happy to try get you a cheaper rate and also share my trail to get it even lower. Flick me a message
You are getting ripped off. Do something about it. Will be well worth it.
these other people mostly have better LVR ratio
for 80% 6% and above is the norm
Check out
https://www.regionalaustraliabank.com.au/home-loans/regional…Upto 4K cash back.. my refinance is in process with 5.99% without recent cash rate adjustment and up to 10 offset accounts and free credit card and on top no fees at all
Looks pretty good, I wouldn't call those features free when they offer 5.92% no offset and 6.17% with offset, but it sounds like you negotiated to get the offset package at a much lower than advertised rate?
As someone who doesn't care about offset as we just dump all pay into the loan then redraw and pay off the credit card at the end of each month 5.67% (after rate cut) + cashback looks pretty good to me.
5.99% variable PPOR with ING. Will become 5.74% on 4 March
5.94% p.a PPOR^ with CBA with offset accounts. Will drop to 5.69% on 28 Feb.
^ used for equity for investment properties.
I did threaten to leave a couple of times to get the above rate. Was thinking of refinancing but not worth the hassles for me to save a few basis points.
Hopefully will get more RBA rate cuts. With the rate cut, it has made the investment properties just positively geared.
Only 18 more years and investment properties will be paid off lol.
If you had a home loan of $400k but also had $400k in cash to pay it off, what would be the best plan? pay it off? invest it?
Get a home loan with an offset account. Place $400k in the offset account until you decide what to do with the property.
1- If you never ever intend of rent the property out, then pay it off.
And then redraw to purchase an investment property or invest in shares. The loan will fully tax deductible.
2- if you rent the property out. Use the redraw to use a deposit for your next family home. The $400k loan will be tax deductible against original home (now investment property).
If you paid off the property and then redraw it, the loan will not be tax deductible against original home (but may be tax deductible if new property is an investment property).
And then redraw to purchase an investment property or invest in shares. The loan will fully tax deductible.
Do all home loans have redraw facility or do you need to ask for it?
I can't remembering any home loan not having a redraw facility.
Banks love redraw. Use them and they will earn more interest.
Banks don't love offset accounts. Use them and they will earn less interest.
@Brianqpr: There's a redraw facility but redraw is NOT an account.
Using redraw (facility) will increase the loan balance.
Depositing money into your loan account reduces your loan balance.
@JimB: Well say you put $100k into your loan account at an interest rate of 6%. That money is available for redraw but while its there it saves interest of $6k a year.
Alternatively you have the $100k in offset. You still save $6k a year.
Either way if you take money out your loan interest cost will increase accordingly.
I just don't see how the bank makes more if you use redraw?
#1 is called debt recycling and while it is a great strategy if someone had a big pile of cash sitting in an offset, you have to be careful and do it correctly to not "mix" funds. It involves getting the bank to split the loan, paying it down and then redrawing to a separate account. Not that complex but easy to screw up and get a huge tax bill.
Hi @JimB, probably stupid and too generic question, how much tax deductible will be for the $400k loan redraw from loan account? Thank you.
It's not a stupid question and you can mess things up if not done correct.
Assuming that you pay down your PPOR loan to $0 and on the same day redraw $400k (yes it can be done without closing down the loan), the whole $400k can be tax deductible*
*if the $400k is used to purchase an investment.
Remember this- the security (house) the loan is against does not determine whether the interest it is tax deductible or not. What ultimately determines tax deductibility is what the loan is used for.
Sorry can you elaborate on this some more? I dont quite understand the logic.
"1- If you never ever intend of rent the property out, then pay it off.
And then redraw to purchase an investment property or invest in shares. The loan will fully tax deductible."
We own our home thats paid off and are paying off a investment property/holiday home. We dont intend to ever rent it. Im not understanding the tax deductible component of your statement.
Also the last statement seems to contradict the first point :
"If you paid off the property and then redraw it, the loan will not be tax deductible against original home (but may be tax deductible if new property is an investment property)."
Isnt your first example paying it off with the 400k in the offset?
Leaving $400k in offset isn’t paying it off but you won’t pay any interest.
Depends how much you like debt. If you want to be debt free then fully offset it and use subsequent income to invest in shares like ETFs
If you like debt then use 400k for new property and rent it out.
I would absolutely pay off the mortgage, but I am not a financial wizard, so others might have better ideas. Personally, I would rather be debt free and then work on saving up again after mortgage is paid off.
6.14% Bankwest. PPOR.
Will be 5.89% soon
185k owing, is there anything I should do? Refinance? Any cashback options?
Have 3 lots 6.33% for IP, pre cut. CBA, and 1 x 6.47%
im currently paying 6.34% at bank of melbourne, so i think im still doing ok
Locked in at 2.6 three years ago, so it's going up for me!
I bet against the bank (fixed loan) 3 years ago and lost nearly $100k. haha
Sorry to hear that. Just got lucky with mine. Hope you get some relief with rates dropping.
It was a decision based on information available at the time.
A fraction better when my bank drops rates this week
HSBC 6.04% Var PPOR with Offset. Soon to be 5.79% on 10/03.
I say "soon", despite the fact that HSBC has set their rate change effective date the latest of all but one Australian lender, second only to Bank of Sydney (which is 12/03).
I'm on slightly lower: 5.99 > 5.74.
Have lodged requests to lower this but they're not moving, though I do understand that 5.74 is quite low.
I'm annoyed that they are so slow to change their rate - have lodged an official complaint but I'm sure it won't go anywhere.What’s your LVR roughly, if you don’t mind me asking? I also squeezed them for a better rate and they wouldn’t budge.
<80%
I'm currently at 6.72% variable. No news of having it lowered but will definitely call.
And for those wondering I could get a better deal. Perhaps now I can. But when I purchased the property 3yrs ago, my serviceability was dead because I had two existing large mortgages. Banks were only offering $300-$380k while this one private bank offered $630k and ended up buying a place at 26% LVR. Now that principal has come down a bit and my financial situation is much better, I may have more options to shop around.6 something
Im on 6.14% with Aussie Select and wasn't really planning on moving, however I see they aren't planning on passing on the the rate cut until March 17th gives me a good reason to shop around.
For fun I uploaded my statements from my old house to GTP to see how long it took them on the way up.
Complete Interest Rate Change Dataset
May 4, 2022 (RBA increase) → Bank applied change on May 23, 2022 (19 days)
Rate changed from 2.39% to 2.64%
June 7, 2022 (RBA increase) → Bank applied change on June 17, 2022 (10 days)Rate changed from 2.64% to 3.14%
July 6, 2022 (RBA increase) → Bank applied change on July 15, 2022 (9 days)Rate changed from 3.14% to 3.64%
August 3, 2022 (RBA increase) → Bank applied change on August 3, 2022 (0 days)Rate changed from 3.64% to 4.14%
September 7, 2022 (RBA increase) → Bank applied change on September 12, 2022 (5 days)Rate changed from 4.14% to 4.64%
October 5, 2022 (RBA increase) → Bank applied change on October 12, 2022 (7 days)Rate changed from 4.64% to 4.89%
November 2, 2022 (RBA increase) → Bank applied change on November 3, 2022 (1 day)Rate changed from 4.89% to 5.14%
December 7, 2022 (RBA increase) → Bank applied change on December 12, 2022 (5 days)Rate changed from 5.14% to 5.39%
February 8, 2023 (RBA increase) → Bank applied change on February 15, 2023 (7 days)Rate changed from 5.39% to 5.64%
March 8, 2023 (RBA increase) → Bank applied change on March 14, 2023 (6 days)Rate changed from 5.64% to 5.89%
May 3, 2023 (RBA increase) → Bank applied change on May 8, 2023 (5 days)Rate changed from 5.89% to 6.14%
June 7, 2023 (RBA increase) → Bank applied change on June 13, 2023 (6 days)Rate changed from 6.14% to 6.39%
November 8, 2023 (RBA increase) → Bank applied change on November 16, 2023 (8 days)Rate changed from 6.39% to 6.76%
February 18, 2025 (RBA rate drop) → Bank will apply the change on March 17, 2025 (27 days)Rate change TBD
Summary of Time Taken to Pass on ChangesFastest increase: 0 days (August 3, 2022)
Slowest increase: 19 days (May 4, 2022)
Average time to pass on increases: ~6.9 days
Time to pass on the first rate cut: 27 days
None, rent is $920 for a 2 Bed, I've done the math and will take 7 years to save, assuming I don't spend anything on items like cars, furniture, computers, games etc and if prices stay the same for everything.
far out $920 for a 2 Bed.
is there a cheaper option in order to save for a deposit?
Cheaper option is to move 2~ hours further out from the CBD (already 40 minutes away), or move states and pay $600+ for something similar.
This means me and the wife both getting new jobs (which could also mean new careers entirely) and probably less pay that outweighs the move.Guess the current option makes sense then.
Based on the rent, I'm certain you're in Sydney, rental market and property prices are cooked there.
I think you're overpaying… or you're renting a high quality apartment. There are some decent 2 bedders around Burwood in relatively new buildings for around $700/week.
I have a 2006 build 3br + study (4th bed) + 2 shower (3x toilet) + 1 lockup garage townhouse in Lilyfield rented out for $900/week. To be fair, I've had the same tenants for 7yrs so I am probably under market value. My house is literally a 10-15min ride to Sydney CBD via light rail. I think you're overpaying… or your place is luxe with exceptional views.
down south near the railway line is good value, not as messy as outer west. anywhere between kogarah to oatley can get a basic house for under 1k or apartments for <700 for <30min commute to CBD via PT. can go further out to the shire if you don't need to commute daily
Jannali is a village style nice suburb and just over 30 mins by train to Martin Place with regular services. Heaps of cafes, two pubs, good range of shops, Miranda Westfield 10 mins away, Cronulla not far and just a nice, relaxed feel to the place.
Much prefer it to Kogarah and surrounds which are increasingly concrete jungles and not that pleasant in my opinion. The flip side is the large supply of units in that area may keep rent down.
You have to be on 150k surely to be able to afford that kind of rent.
Yeah, combined.
6.11, it will be 5.86 on 28th due to rate cut
Same to Same with BOM
Interesting that no one is with CommBank? My Commbank variable rate is
6.01 owner occupied
6.26 investment
After 28/02
5.76 owner occupied
6.01 investmentAre you with broker?
That is such a good rate, do you get offset account with those loans?
5.93% variable with St George and including offset accounts. This is pre RBA rate drop.
Do you know what your LVR is ?
50% after revaluation.
WBC offered 5.91 (pre drop) when i was on 5.99 and leaving them, so they have a bit more give in it.
6.19% fixed expiring July with Bank of Melbourne..
I like fixed so I know how much my repayments will be, but I think they've settled down on the interest rate rises..
6.25% homeowner-occupied with CBA, and I feel like I’m in mortgage prison. I really hate CBA but can’t refinance. Does anyone have tips on refinancing when your income doesn’t meet their lending criteria? Are there any lenders that allow refinancing as easily as switching mobile carriers?
APRA (?) have eased the buffer that banks need to apply for refinances (with up to $50k additional funds). Not too sure if that's enough to help you.
The buffer is essentially the headroom they apply to the current interest rates to see if you can afford the loan in a rising market - on a new loan it has traditionally been (rate + 3%), but for the refinancing it has been reduced to (rate + 1%).
Mate seriously how hard can it be to pick a phone and call a broker for help. They are literally sharing commissions and will find a solution for you. Just look up mortgage broker on OzB and call one. The worst that can happen is a NO. And if you don’t do something that’s the answer already.
IMB 5.79% (as of 4th March).
Owner occupied, LVR under 80%, $4k cashback on new lends.
5.76% with 933k at STG for PPOR
6.44% with 413k at STG for IPOthers are paid off.
@pogichinoy - Does 5.76% include the recent rate drop and how long have you been with STG?
Been trying to get a lower rate from them and they won't go lower than my current 6.04% (5.79 after rate cut).
Nah it doesn't yet. New rate cut will take effect on 4th of March. This mortgage started in October 2023. So that's almost 1.5 years.
Try some debt recycling thru a broker perhaps? They usually have better connections in negotiating a rate.
Good luck mate!
UpBank 5.75% comparison rate (from 1st of March)
100% offset
Owner occupiedI'm surprised no one has commented UpBank.
ING
PPOR
6.09% (dropping to 5.84%)We're just about to hit 10/30 years through mortgage. Might be time to shop around for any better deals. Last time we checked was about 2 years ago and ING was one of the better options.
God i wish my mortgage is only $180k.
Mortgage rates would be the last thing i'd look at on my list.5.69 fixed years ago. Whee
I was on 1.99% fixed for 3 years, and only rolled off that 6 months ago.
When did you fix at 5.69? That sounds very high if you did so "years ago".
1.99 fixed rates havent been around since 2021-22 where they very rapidly shot up in 2022. I fixed in 22/23
Mine was September 2021, fixed for 3 years @ 1.99%, expiry September 2024. Refinanced at nearly triple that in September- straight variable. That was a horrible pill to swallow!
The reason I asked is because you said you fixed at "years ago" @ 5.69%, and I was curious when because that sounds very expensive for the time in question. They did shoot up a lot though, but then plateaued June 2023 and haven't really moved much since.
I would have definitely "whee'ed" if I'd locked in at 5 years for 2.2%! Those two extra years would have saved me thousands!
Yeah I fixed at 1.86% for 3 years which ran out in September last year. Could have had 2.24% for 5 years but made the mistake of listening to Philip Lowe. Hindsight is a wonderful thing, still did pretty well out of it though.
Yeah agreed. Regret not fixing for 5 when I had the chance, but thankful I did 3. Rates went nuts and we were both sitting pretty at 2% for a while there.
5.97 % currently with Bendigo PPOR ; will ve 5.72% from 7th March.
5.99% (soon to be 5.74%) PPOR
6.19% (soon to be 5.94%) IP6.04 PPOR, 6.33 IP. Westpac
Both with offset.Westpac PPOR 5.89%, not taking into account recent RBA announcement. Full package with offset.
damn, that's an exceptional rate for westpac
What's your LVR and loan size?
5.91% with Tiimely Home and about to drop to 5.66%. PPOR with offset.
HSBC just emailed that my variable is going down .25% at the end of the month, from 5.99%
My OO var rate is going down .25% from 5.84% Am with HSBC
It is a basic loan with P&I, was a promo at the time and has no offset or package.
My rates, before the latest rate cuts:
5.99% OO - Westpac - Offset + Package (package fee fully refunded every year)
5.94% OO - HSBC - With Offset + Package (50% package fee discount)
5.94% Inv - HSBC
Both Westpac and HSBC have announced full passing on of the cuts.How do you get package fee refund every year?
Yes, please share this
You have to be a Premier member.
Package fee refund -
- Westpac - CPA Membership
- HSBC - Premier Banking statusDo you know if the Westpac/CPA waiver is documented somewhere? Otherwise, how'd you get it applied?
Suncorp 6.24% variable PPOR P&I. LVR 30% (offset) - 38% (owed). Haven't had much luck reducing due to the takeover and things almost on hold/frozen 'til that's worked out. Current brokers are useless, never follow-up on our 6mth, slow & and lost processes costs us a couple month. I had to talk to the bank direct and negotiate so what's the broker even doing? Talked to another broker who said it wasn't really worth moving for .2% a few months back. Probably looking to go digital now if I can. Rates are lower than brokers and I find they don't really offer any benefits for their higher rates. Could be a 0.5% jump if approvals are good.
Depends on your loan amount, but no one should be above 6% mate.
Definitely worth the shop around… and look for cashbacks for some of these lenders. $3-4k cashback equates to another 0.25% off the loan rate for that first year. Every bit adds up! 6.24% is way too high.
5.75%PPOR with Up after rate cut, 90% LVR and all transaction / savings accounts count as offsets without fees.
Confused why so many people are on worse rates with better LVRs? Is it just from using brokers?
5.84% IP, p&I, before latest rate drop.
Not sure if Westpac are passing on the cut.5.84 PPOR
6.04 IP 1
6.07 IP 2
5.74 IP 3
Car loan at 5.99%
And finally, kids braces are free of interests but needs to be paid off in 2 yearshow come everyone got so low.
just negotiated mine to 6.9% IP IO (6.65% after rate drop) before was 7% + package
never refinanced since inception as liking the complimentary top-tier credit cards offered
6-6.10 is competitive (pre rate cut), a full service loan with offset.