Interest Rates have finally dropped to 5.75 Variable and 5.49% Fixed 2 yrs. Can my mortgage broker secure this deal for me?

Interest Rates have finally dropped to 5.75 Variable and 5.49% Fixed 2 yrs.

As of March 10, 2025, several Australian lenders are offering competitive home loan interest rates that might appeal to potential borrowers.

Here's a comparison of some of the lowest rates currently available on the market: A two-year fixed rate is attractive at 5.49%, the cheapest rate we've seen thus far, while a variable interest rate starts at 5.74-5.75%, with no additional fees, depending on your Loan to Value Ratio (LVR) and the total amount of funds you are considering borrowing. This is for on shore Australian Residence, if you’re an expat, and purchasing an investment property it will be slightly higher.

When making the critical decision regarding a home loan, it is essential to compare both the interest rates and the comparison rates, as the latter reflects the actual overall cost of the loan, including most fees and additional charges that may apply.

However, not all lenders will treat you equally; lenders target a particular niche or have a risk appetite that they are comfortable lending to. If you don’t meet that criteria, or if your goal doesn’t fit their risk appetite, the banks won’t lend you the funds you require, and you might find yourself coming up a bit short with one lender, where another lender will be able to facilitate your loan.

So how do you know which lender is right for your unique situation?

Technology is amazing. In 2025, your mortgage broker should be able to compare loans from 40+ lenders on a calculator, giving you more choice than if you went directly to a bank.

Furthermore, it is crucial to ensure that the loan features align well with your specific financial goals and personal circumstances. Consulting with a knowledgeable mortgage broker, a qualified financial advisor, or an astute tax accountant can provide personalized guidance tailored to your unique needs and aspirations in the property market.

If you’d like to learn more about interest rates in Australia for Australian Citizens, feel free to reach out and book a complimentary 15 min discovery call. If you're an expat and keen to purchase property, you can reach out to Adam Kingston from Australian Expat Finance.