2020 saw 6,777 interest rate cuts across Australia's home loan institutions
From 1 January to 31 December there were 6,777 cuts to home loans, with an average cut of -0.30%, according to Canstar's database.
It recorded:
- 880 cuts to variable rates for owner occupiers, with an average cut of -0.21%
- 2,455 cuts to fixed rates for owner occupiers, with an average cut of -0.33%
- 764 cuts to variable rates for investors, with an average cut of -0.21%
- 2,678 cuts to fixed rates for investors, with an average cut of -0.32%
Over the same period there were 535 home loan rate increases, with an average increase of 0.20%.
On 1st January 2020 the average variable rate for owner occupiers paying principal and interest was 3.73% (80% LVR). Today that rate is 3.32% The lowest variable rate was 2.69% and it is now 1.99% (80% LVR) or 1.77% (60% LVR).
On the 1st January 2020 the average 3-year fixed rate for owner occupiers paying principal and interest was 3.15%. Today the average 3-year fixed rate is 2.30%. The lowest 3-year fixed rate was 2.69% and it is now 1.89%.
Savings interest rates
From 1 January to 31 December Canstar recorded:
- 529 cuts to savings, with an average cut of -0.18%
- 262 cuts to regular savings accounts, with an average cut of -0.19%
- 267 cuts to bonus savings accounts, with an average cut of -0.17%
On 1st January 2020 the average regular savings account rate was 1.12%. Today that rate is 0.43%. The maximum rate was 2.65% and it is now 1.75% (available for 4-months).
On 1st January 2020 the average bonus savings account rate was 1.47%, now just 0.75%. The maximum rate was 2.25% and it is now 1.35%.
