Dry July in the home loan market

Home lenders are still lying low after July’s shock cash rate hold with very little movement in the mortgage market this week.

Ten days after the Reserve Bank of Australia surprised markets by holding the cash rate at 3.85%, home lenders are still cooling their heels in adjusting their interest rates.

But the odds of an August rate cut firmed markedly on Thursday when the June unemployment figure jumped to an unexpected 4.3%, up from 4.1% in May.

The unemployment rate has been steady at around the 4% mark since the beginning of 2024, with a tight jobs market long cited as a reason the RBA has been reluctant to bring on rate cuts.

But all bets are off with the June figure showing the jobs market is cooling, which is what is supposed to happen in the RBA’s long and ongoing fight against inflation.

Some pundits are saying it’s another sign the central bank should have cut rates in July, particularly after the lower-than-expected May monthly inflation figure of 2.1%.

The RBA will now be looking to its preferred quarterly inflation data, due out on 30 July, to verify the economy is indeed ripe for a cash rate cut in August as all four of the big banks had forecast for July.

In that climate of waiting, it seems home lenders are holding their cards until the cash rate decision of 12 August when even the most hardened of sceptics would expect a 25-basis point cut.

With that in mind, let’s round up what’s happened on the home loan market this week, which is not too much.

Summerland drops rates by 30 bp

The Northern Rivers-based bank in New South Wales has taken the knife to a raft of its home loan rates this week.

Summerland‘s best new rate is 5.09% p.a. (6.18% p.a. comparison rate*) for an owner-occupier home loan fixed for two years with a loan-to-value ratio (LVR) of 80% or less – a 30-basis point drop.

The rate falls to a market-equalling 4.99% p.a. (6.16% p.a. comparison rate*) for LVRs 60% or less.

As you’d expect, Summerland reserves its best interest rates for low LVR loans.

It’s taken five basis points off its Basic Home Loan Special Offer variable rate to 5.49% p.a. (5.54% p.a. comparison rate*) for owner occupiers with ≤60% LVR.

The rate goes up to 5.59% p.a. (5.64% p.a. comparison rate*) for LVRs between 60 and 80%.

Summerland is also offering new cashback deals of up to $3,000 to eligible refinancers.

The small customer-owned outfit is set to finalise its merger with Regional Australia Bank in 2026.

See also: Home Loan Cashback & Refinance Offers

Image by Mikhail Nilov via Pexels

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Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.