Home loan rate rising? Here are eight cheaper options

Why rising rates make it time to re-consider small lenders, how Aussies plan to spoil mum this Mother's Day, and the tax office reveals its hit list for 2026. Here are five things you may have missed this week.

Rate hikes return, so is it time to switch lenders?

Three consecutive rate hikes have wiped out 2025's rate cuts.

But homeowners don't have to just bear the extra cost.

Yes, you may be able to haggle with your lender for a rate discount.

But for a lower rate rate, it can pay to think about refinancing - especially if you look beyond the big banks.

At the time of writing, some of the best rates across the four major banks include:

• 5.84% - CommBank Digi Home Loan 5.84%
• 5.74% - Westpac online offer - Flexi First Option home loan
• 6.19% - NAB Basic variable rate
• 6.14% - ANZ Simplicity PLUS

If you're prepared to look further afield, you could get rates as low as:

• 5.59% - Pacific Mortgage Group
• 5.59% - Virgin Lite Home Loan
• 5.69% - Greater Bank
• 5.74% Reduce Home Loans

Some of these lenders, such as Reduce Home Loans, also offer a cashback sweetener for refinancers.

Property research group Cotality says that there is potential for further rate hikes ahead.

It could make now the time to see how your home loan rate shapes up.

Mother's Day spending jumps, even with cost pressures rising

Tomorrow, May 10, is Mother's Day, and despite rising living costs (and higher interest rates), Aussie mums look set to be spoiled.

ANZ Bank reveals customer spending remains resilient year-on-year.

In 2025, for example, ANZ customers spent $592 million nationally over the Mother's Day weekend, an increase of 6.6% on 2024.

Dining out proved the most popular way to celebrate, with spending also rising on travel for mums (up 15%), watches and jewellery (up 11.9%), and florists (up 7.81%).

ANZ's managing director of data and analytics, Joanna Gurry, says the data underscores Australians' enduring commitment to celebrating mums.

"Aussies love to spoil mum. Mother's Day remains a key moment on the retail calendar, with customers showing their appreciation through both traditional gifts and shared experiences."

ATO cracks down on dodgy tax tips ahead of June 30

As the clock ticks towards June 30, the Australian Taxation Office (ATO) is warning Australians to be wary of incorrect or misleading information, particularly claims promising greater refunds, shortcuts or hacks.

The ATO reports a rise in tax-related content and 'tips' being shared online.

ATO Assistant Commissioner, Anita Challen, says Australians should "think twice" before acting on information from artificial intelligence (AI) platforms, 'finfluencers', and even family or friends.

"In an environment where misinformation can spread within minutes, it's important to pause and check your tax information before you act on it," says Challen.

"Dodgy tax advice doesn't just mislead - it can also lead to significant penalties."

This tax time, the ATO will focus on areas where taxpayers are likely to make errors including work-related deductions and expenses, and omitted income.

"We understand apportioning expenses can be tricky," says Challen. "But don't fall into the trap of thinking if you intentionally claim a little more than you are entitled to, it'll fly under the radar and that the ATO won't notice."

The ATO is also reminding taxpayers to declare all sources of income including side-hustles, cash jobs, interest and rental income.

Savings hit record highs, but are you missing better rates?

Aussies are thumbing their nose at higher living costs by saving more - not less.

The latest figures from bank regulator - the Australian Prudential Regulation Authority (APRA), show Aussie households have amassed $1729 trillion in savings, up from $1682 trillion in December 2025.

Trouble is, we may not always stash cash in accounts that pay the highest return.

CommBank dominates the savings account market, with around $447,808 million of household savings.

But smaller banks can offer very compelling rates on spare cash.

As at early May, Rabobank is offering a 5.65% bonus rate.

Ubank is paying 5.60%.

ING is paying 5.65%.

These rates can come with strict terms and conditions to earn bonus interest. And some may be introductory offers. But now is the time to shop around and make your money work harder.

Banks on standby to support Aussies facing financial pressure

Over 80% of home loan borrowers are still ahead on their loan repayments and household deposits remain at record levels.

That said, Financial Counselling Australia (FCA) says the May rate hike will intensify financial pressure on households with mortgages who are already struggling.

However, homeowners don't have to suffer in silence.

The Australian Banking Association (ABA) is urging home owners with a mortgage to get in touch with their bank if they need support.

ABA CEO Simon Birmingham says, "Australian banks recognise that this week's interest rate rise will be difficult news for many households.

"You don't have to tough it out on your own - get in touch with your bank."

Depending on individual circumstances, assistance may include:

• Moving to interest-only payments for a period.
• Deferring payments temporarily.
• Restructuring the length of a loan to lower monthly repayments, and
• Providing flexible access to savings and term deposit products to support short-term cash flow needs.

The key is to act fast - certainly before you miss a repayment, which can leave a black mark on your credit record, potentially making it harder to refinance to a lower rate.

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