The Co-operative Bank becomes the first mover on home loan and term deposit rates in 2024, even if most of its changes mirror those made by the majors at the end of last year

Following the major banks trimming home loan rates at the end of 2023, the first of the 2024 mortgage rate changes have been announced and they too are mostly cuts.

The Co-operative Bank has followed its major rivals and raised some shorter fixed rates but trimmed longer rates, and trimmed its term deposit rates as well for terms of 1 year and longer.

This pitches their carded offers at about the same levels as the majors.

And they come with a backdrop of a new listing drought, and a full 2023 that delivered low numbers of sales transactions in the housing market, even if they did firm up at the end of the year.

Listing inventories are now 23 weeks at current sales rates.

The Co-operative Bank's attractive 6.20% one year 'special' has been trimmed to 6.15%, but that is still better than any main bank - even if it is interest-at-maturity.

They are unlikely to be the last bank making changes in this rate cycle, but like all the ones we have had so far, the adjustments will be relatively modest.

Obviously you should negotiate and shop around. Most banks will discount their carded home loan rates if you have strong financials. You shouldn't need them but if you are uncomfortable negotiating, a broker can often be helpful. But be aware some brokers won't offer you the best over the whole market, only the banks they have approved connections to in their "lending panel." And clearly bank mobile managers are there to pitch their company's own product.

They may even offer savers higher than carded rate offers.

Challenger banks usually offer better rates - although not always mainly because most lack ready access to wholesale markets.

One useful way to make sense of the changed home loan rates is to use our full-function mortgage calculator which is below. (Term deposit rates can be assessed using this calculator).

And if you already have a fixed term mortgage that is not up for renewal at this time, our break fee calculator may help you assess your options. But break fees should be minimal in a rising market. They will become important in a falling market however.

Here is the updated snapshot of the lowest advertised fixed-term mortgage rates on offer from the key retail banks at the moment.

Fixed, below 80% LVR	6 mths	1 yr	18 mth	2 yrs	3 yrs	4 yrs	5 yrs
as at January 11, 2024	%	%	%	%	%	%	%
ANZ	7.35	7.39	7.15	6.89	6.75	7.34	7.34
	7.45	7.45	7.15	6.89	6.75	6.75	6.75
	7.39	7.35	7.15	6.89	6.79	6.75	6.75
	7.39	7.35		7.05	6.89	6.79	6.79
	7.39	7.39	7.19	6.99	6.75	6.69	6.49
Bank of China		7.09	6.99	6.89	6.79	6.69	6.59
China Construction Bank	7.19	7.09	6.89	6.75	6.49	6.40	6.40
Co-operative Bank	7.39 +0.09	7.35 +0.05	7.15	7.05 -0.16	6.75 -0.10	6.75 -0.10	6.75 -0.10
Heartland Bank		6.99	6.89	6.85	6.65
ICBC	7.19	7.05	6.95	6.85	6.59	6.49	6.49
	7.55	7.55	7.25	7.15	6.79	6.79	6.79
	7.39	7.39	7.19	7.09	6.85	6.79	6.79