Securing a great home loan isn’t just about finding the lowest interest rate—it’s also about timing your application strategically. Just as property prices fluctuate with supply and demand, mortgage rates and loan conditions shift throughout the year. Lenders change their pricing based on market conditions, internal targets, and competitive pressure, meaning that some months are more favourable for borrowers than others.
Understanding these seasonal patterns can help homebuyers and refinancers save thousands over the life of their loan. Whether you’re purchasing your first property, upsizing, or looking to refinance, timing your move with rate trends gives you a powerful edge.
In this guide, we’ll explore:
- How mortgage rates fluctuate throughout the year
- Which months historically offer the most competitive deals
- Whether end-of-year promotions are worth pursuing
- How to use seasonal patterns to your advantage
How Mortgage Rates Shift Through the Year
Mortgage rates are shaped by multiple factors—RBA decisions, funding costs, bank lending targets, and market competition. But over time, clear seasonal trends have emerged that smart borrowers can use to their benefit.
Seasonal Mortgage Rate Patterns in Australia
January – March (Summer / Early Autumn)
- Post-holiday quiet period = more aggressive offers from lenders
- Banks aim to kickstart new business early in the year
- Historically a strong time to refinance or apply for a loan
April – June (Autumn & Financial Year-End)
- Some rate movement as lenders rebalance loan books
- A few banks offer EOFY incentives, but many pull back on discounts
- Slight uptick in rates is common during this period
July – September (Winter / Early Spring)
- The market typically slows in winter
- Some lenders introduce teaser rates ahead of the spring buying rush
- Mortgage rates generally remain stable
October – December (Spring Boom & End-of-Year)
- Spring buying season drives up application volumes
- Lenders compete with cashback offers, fee waivers, and promotional rates
- December brings a flurry of limited-time deals before the holiday period
Key Insight: Early-year and late-year periods are typically the most competitive, while mid-year tends to be more subdued for mortgage discounts.
Which Months Offer the Lowest Home Loan Rates?
Let’s look at average rate movements month-by-month to identify the most borrower-friendly windows.
Historical Rate Movement by Month
| Month | Rate Movement Trend | Likelihood of Lower Rates |
| January | Rates dip post-holidays | High |
| February | Remain competitive | Moderate to High |
| March | Slight stabilisation | Moderate |
| April | Mild increases pre-EOFY | Low |
| May | Promotional offers emerge | Moderate |
| June | End-of-financial-year pressure | Moderate to High |
| July | Stabilisation after EOFY | Low |
| August | Teasers before spring | Moderate |
| September | Buyer demand rises | Moderate |
| October | Lenders compete pre-Christmas | Moderate to High |
| November | Year-end promotional surge | High |
| December | Short-term deals before shutdown | Moderate to High |
Best Months to Get a Home Loan
- January–February: Low application volumes, strong lender competition
- May–June: Some lenders offer EOFY rate cuts to meet lending targets
- November: High promotional activity, often including cashback deals
Less Favourable Months
- April–July: Rates tend to firm slightly as lenders reduce promotions
- September: Spring demand means less need for aggressive discounting
Timing Tip: If you’re refinancing, aim to apply in February or November to maximise rate discounts and incentives.
Are End-of-Year Mortgage Promotions Actually Worth It?
Lenders love to end the year strong. November and December often come with:
- Cashback offers (typically $2,000–$5,000 for refinancers)
- Temporary interest rate reductions for new customers
- Fee waivers on application or settlement costs
But are these genuinely beneficial?
When End-of-Year Deals Work
- You’re refinancing and won’t be hit with high exit fees
- You lock in a rate that’s competitive beyond the initial promo period
- You’re comparing multiple lenders to avoid overpaying after the discount expires
When They Don’t
- You’re drawn to a low upfront rate but ignore high long-term costs
- The cashback is offset by a less competitive rate over time
- You’re refinancing from a fixed loan with large break fees
Verdict: End-of-year offers can be excellent—but only when you assess the long-term impact, not just the upfront appeal.
How to Use Seasonal Trends to Secure a Better Mortgage Deal
It’s not just about picking the right month—it’s about approaching the mortgage process strategically.
1. Research Rate Trends Ahead of Time
- Use mortgage comparison tools to track changes
- Follow RBA decisions and lender announcements
- Watch for seasonal drops—especially early in the year and pre-spring
2. Compare at Least 3–5 Lenders
- Rates vary widely between banks and non-bank lenders
- Look at comparison rates, not just advertised rates
- Assess fixed, variable, and split options to match your goals
3. Choose Fixed or Variable Based on Market Outlook
- If rates are expected to rise: Lock in a short fixed term (1–3 years)
- If rates are likely to fall: A variable loan may offer better flexibility and savings
- Consider a split loan to hedge your bets
4. Negotiate Using Competing Offers
- Strong credit history? Low LVR? Stable income?
Use these as leverage for a sharper deal - Ask lenders to match or beat competitor rates
- Don’t underestimate your power as a low-risk borrower
Final Takeaways: When Is the Best Time to Get a Home Loan?
While the best time to buy a home depends on your personal and financial situation, the best time to get a home loan is often tied to broader seasonal and market trends.
Key Points:
- January–February and November typically offer the lowest home loan rates due to strong lender competition
- April–July tends to be a quieter period for mortgage discounts, as banks focus on balancing portfolios
- End-of-year deals can provide value, but they must be evaluated against long-term costs
- Strategic borrowers who compare lenders, track trends, and negotiate stand to gain the most
Whether you’re refinancing or entering the market, smart timing can reduce your borrowing costs and improve your loan flexibility.
Need Help Timing Your Mortgage Application?
We can help you analyse current lender trends, compare rates across banks and non-banks, and lock in a deal that suits your financial goals. Let’s make sure you apply at the right time—for the best rate.