RBA cash rate vs average Australian mortgage rate
Banks do not pass the full cash rate move through to borrowers. This chart shows the gap over time.
Series in this chart
- Cash rate
/v1/data/rba/f1.1 - Standard variable rate
/v1/rba/lending-rates
Code that produces this
cURL
curl https://api.ausdata.io/v1/mortgage-spread \
-H "Authorization: Bearer YOUR_KEY"Methodology
Standard variable owner-occupier rate published by RBA. Difference is the lender spread.
Takeaways
- Spread widened 100bp from 2019 to 2023.
- Discounting brings the effective rate 100 to 150bp below the standard variable.