After pushing mortgage interest rates higher early in the year, lenders are cutting rates. According to the latest Mozo Banking Roundup, a number of lenders cut variable and fixed rates for both owner-occupiers and investors in September.

Among the major banks, Westpac cut its two-year fixed rate for owner-occupiers by 11 basis points to 3.88 per cent. Its subsidiary St George Bank cut its two-year fixed rate for owner-occupiers by 14 bps to 3.85 per cent.

Commonwealth Bank cut its four and five-year rates by 20 bps to 4.19 per cent for owner-occupiers making principal and interest repayments.

ING Direct cut five bps off the rate for owner-occupiers making P&I repayments, with loan-to-valuation ratios below 80 per cent. Its Orange Advantage package starts at 3.69 per cent and its Mortgage Simplifier starts at 3.84 per cent.

HSBC made a number of changes last month, cutting the variable rate on its Discounted Home Value Loan by 20 bps to 3.65 per cent (owner-occupier, P&I repayments) and increasing the variable rates on its Home Smart Premier Package and Variable Home Loan.

HSBC reduced rates across all fixed-rate terms – from five bps on its one-year term to 24 bps on its four and five-year terms.

BCU, Community First, Suncorp Bank, Gateway Credit Union and Newcastle Permanent were among the other lenders to cut rates.

The rate leader in the variable rate market is Reduce Home Loans, which is offering 3.44 per cent on its Rate Buster Loan. My Credit Union has a one-year introductory rate of 3.39 per cent, reverting to a variable rate of 4.34 per cent.

In the fixed rate market Greater bank is offering 3.49 per cent for one year. BCU has the lowest rates for two, three, four and five years – all at 3.5 per cent.

Among the major banks, ANZ has the best package rate (for loans over $500,000 with LVRs below 80 per cent) of 4.3 per cent. NAB and Westpac are offering package rates of 4.34 per cent and CBA 4.52 per cent.