Australian Home Loan Competition Continues as Lender Cuts Fixed Rates by Up to 0.30%

There is fresh evidence today that Australian mortgage competition remains active, with at least one lender reducing selected home-loan rates even without waiting for another Reserve Bank decision.

Border Bank announced that from 3 September 2026, selected new-business variable home-loan rates would fall by 0.10 percentage points, while selected three-year fixed home-loan rates would be reduced by a larger 0.30 percentage points.

The reductions apply across selected owner-occupier and investment lending products, subject to loan-to-value ratio and other product requirements. Importantly, the changes are for selected new-business products rather than existing loans.

For mortgage holders, the broader message is more important than the offer from any single lender.

Lenders can change their mortgage pricing independently, which means the interest rate on an existing home loan can become less competitive even when a borrower has not changed anything themselves.

That makes periodically comparing a mortgage particularly worthwhile.

A lower advertised rate does not automatically mean refinancing is the right decision. Borrowers should consider the comparison rate, application and discharge fees, remaining loan term, offset facilities, redraw features and the total cost of switching.

Fixed rates also require additional consideration because they generally provide repayment certainty for a defined period but can involve restrictions and break costs.

The latest reduction nevertheless demonstrates something positive for consumers: competition for Australian mortgage customers continues to produce different pricing between lenders.

For Perth homeowners who have held the same mortgage for several years, reviewing the loan can help determine whether the current rate and features remain appropriate compared with alternatives in the market.

Naga Mortgage Brokers can help compare suitable lenders and assess whether refinancing, restructuring or simply retaining your existing mortgage makes the most sense for your circumstances.

General information only. Lending criteria, fees, charges and lender eligibility requirements apply.