In June 2025, borrowers continued to compare new home-loan pricing after the May rate adjustments. Major banks had reduced variable rates, while fixed-rate offers also changed across parts of the market.
Variable Rates
The final variable rate a borrower receives can vary widely, even within the same bank. Loan size, LVR, repayment type, package selection and negotiation all matter.
Owner-occupied principal-and-interest loans usually receive sharper pricing than investment or interest-only loans. Borrowers with lower LVRs may also have access to better discounts.
Fixed Rates
Fixed rates can provide repayment certainty, but they may reduce flexibility around extra repayments, offset access and future refinancing. Borrowers should compare both the interest rate and product restrictions before fixing.
A fixed rate should be considered in the context of the borrower’s plans. If the borrower may sell, refinance, release equity or make large extra repayments, the restrictions and possible break costs need to be understood first.
Refinance Incentives
Cashback offers can help with switching costs, but borrowers should also check discharge fees, package fees, valuation requirements and the total cost over time.
The best refinance is not always the one with the largest upfront cashback. A good refinance should improve the overall loan position, including rate, features, repayment comfort and future flexibility.
This English update is adapted from Fundland Finance’s Chinese June 2025 rate comparison article.