It’s a rare thing these days — some banks are actually not raising your mortgage rate. At least not yet. And while that might sound like a lucky break, don’t start celebrating just yet. There’s more to the story than meets the eye.
How Rate Hikes Usually Work — And Why This Feels Different
Australians have gotten used to a pattern: the Reserve Bank of Australia (RBA) makes a move, and banks follow — often with lightning speed. When the RBA cuts rates? Banks hesitate. When it hikes rates? They’re on it like clockwork.
But this time around, a curious pause is unfolding. Despite the cash rate hitting 3.85%, a surprisingly long list of lenders — from household names like ANZ, ING, and Macquarie, to smaller players like Horizon Bank or G&C Mutual — have not yet passed the increase on to their customers.
Is it generosity? Strategy? Delay tactics? Honestly, it’s a bit of all three. Banks are under pressure, and timing matters — not just for borrowers, but for their bottom lines.
Some Numbers, If You Like Those
According to recent data reported by Realestate, over 60 banks and lenders have yet to raise their variable mortgage rates. Their current rates hover in the 5.14% to 5.74% range, depending on the loan type, the bank, and the loan-to-value ratio. These are for standard owner-occupier loans, principal and interest, with an 80% LVR.
Names like Suncorp, Westpac, St. George, Ubank, and Virgin Money are still holding steady — for now. But this list is getting shorter by the day.
The Catch: Silence Doesn’t Mean Stability
Here’s where things get tricky. Just because your lender hasn’t changed your rate doesn’t mean they won’t — or that they won’t do it soon. Many of these delays are just that: delays. They’re reviewing funding costs, watching their competitors, or maybe just trying not to spook customers all at once.
As Graham Cooke from Finder puts it, banks are juggling a lot — profit margins, savings rates, PR optics. But at the end of the day, most of them will act. And when they do, it’ll be fast.
What Borrowers Can Actually Do
While you can’t stop your lender from eventually raising rates, you can compare. And right now, that comparison might work in your favour. Cooke notes that the spread between the average rate and the best rate on the market is equivalent to a full RBA cut. So, switching lenders — or even just threatening to — might save you more than you’d think.
It’s not glamorous, it takes some time, and yes, the paperwork is annoying. But if it keeps your monthly payments from jumping another couple hundred dollars, isn’t it worth a look?
The Bottom Line: Don’t Wait for the Letter
If your bank hasn’t hiked your rate yet, great. Enjoy it. But don’t assume it’ll last. Because odds are, that letter (or email, or app notification) is coming. So maybe don’t get too comfortable. In today’s mortgage market, the quiet ones don’t stay quiet for long.
