The orange is how variable rates have tracked. Source: Canstar

Aussie homeowners are in for a treat as variable interest rates plunge to their lowest level in two years, a full two weeks ahead of the next Reserve Bank meeting.

The dramatic milestone came even before the Wednesday quarterly consumer price index release – data that will determine which way the RBA rolls come its monetary policy meeting on August 12.

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Lowest variable rates on Canstar.com.au

The Police Credit Union threw the cat among the pigeons by slashing variables to 4.99 per cent for owner-occupiers with a 20 per cent deposit – a significant milestone that hasn’t been hit since July 2023, according to Canstar research.

“The lowest variable rate is now a fraction above the lowest fixed rates in the market, despite the high possibility of further cash rate cuts from the RBA,” according to Canstar data insights director Sally Tindall.

Pressure is building for other providers to match that level out of the RBA cycle, with Horizon Bank and Pacific Mortgage Group offering rates of 5.24pc and 5.34pc respectively, while others like Homestar Finance, Australian Mutual Bank and RACQ are at 5.39pc.

“Variable home loan rates starting with a ‘4’ are finally back on the table after a two-year hiatus,” Ms Tindall said.

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Canstar data Insights director Sally Tindall.

“Police Credit Union might not be a big name brand, but with this move, it’s dialled up the competition in the variable mortgage market by at least a couple of notches.”

“The fact that the lowest variable rate is already below the 5 per cent barrier before an RBA cut, will put pressure on other low-cost lenders to drop rates below this mark.”

She said “banks are sharpening their pencils to attract new customers. For anyone still sitting on a rate well into the 6’s, it’s a wake‑up call to get on the phone to your bank.”

The rate cutting frenzy extended into fixed rates, which have tumbled in the past fortnight, with 13 lenders slashing at least one, including Australia’s fifth-largest lender Macquarie by up to 0.20 percentage points, while Greater Bank’s lowest 2- and 3-year fixed rates are at just 4.94pc.

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Lowest fixed rates on Canstar.com.au.

Canstar figures show 17 lenders now have at least one fixed rate under 5pc, but Ms Tindall warned those who were thinking about fixing now needed to “understand the trade‑offs – you might be buying peace of mind, but it could come at a cost if rates fall faster than expected”.

She said “fixed rates continue to tumble as banks jostle for pole position, but that doesn’t mean everyone should rush to lock in”.

“Banks are dangling sharp fixed rates in front of borrowers chasing short‑term certainty, but with RBA cash rate cuts still on the table, potentially as early as 12 August, fixing could be a gamble.”

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The post Shock as lenders slash rates to lowest level in 2 years off cycle appeared first on realestate.com.au.

We’ve all been new at some point in our real estate careers. Annette DeCicco shares ways to spot an inexperienced agent if you’re the more seasoned pro in a transaction, and mistakes to avoid if you’re a newbie.

Strategic, experienced and caring, find out what Susan Katz has learned during her 30-plus years in the real estate business and how she puts it to work for her clients.

If your lease is up for renewal, your landlord has likely notified you that your rent is increasing. In New York City’s highly competitive rental market, landlords typically try to raise rents for current tenants to match what they could get from new renters.

You may not be an experienced negotiator, but the main tactics to negotiate your rent at lease renewal are not difficult to deploy: Remain polite and point out that you’ve been a good tenant and paid your rent on time. These are among the crucial considerations to help you get the best renewal deal.

It’s important to understand that the market may have changed since you signed your lease. For example, don’t expect your landlord to offer another concession—especially in a corporate-managed, amenity-rich rental building, where renewal offers are often non-negotiable. 

On the bright side, New York’s new Good Cause eviction law gives many market-rate renters the right to challenge a rent increase above 8.82 percent in court. So that gives you a bit more bargaining power in certain situations. Read: “How to tell if your NYC apartment building is protected by the new Good Cause eviction law.”

And NYC’s new broker fee law may also work in your favor. Landlords now must pay the brokers they hire to market apartments—which may make some more inclined to agree to a renewal on terms favorable to you. Check out: “FARE Act takes effect: What NYC renters need to know about the new broker fee law.”

[Editor’s note: A previous version of this article was published in March 2025. We are presenting it again as part of our summer Best of Brick week.] 

The trick is not to respond emotionally to a significant rent increase and to weigh whether staying is cheaper than moving out. Keep in mind that renewing your lease means you’ll avoid the costly hassle of moving to a new apartment, including paying a moving company, a security deposit, and a potential broker’s fee. 

It also makes sense to renew if you know you’ll be in NYC for at least another year and truly love your place. 

What if you cannot commit to the lease renewal increase but keep paying your old rent? If the landlord accepts your payments, you become a month-to-month tenant, which can give you some flexibility but not without some risks. Specifically, you no longer have the protection of a lease, and if a landlord wants you out, particularly if you’re not paying the requested rent, you face eviction.

Here’s what to know if you are negotiating a rent increase during lease renewal.

1. Understand how market-rate units work 

As the name indicates, market-rate tenants are subject to the forces of supply and demand. That means when it’s time to renew your lease, landlords are free to raise rents—they are only constrained by what renters are willing to pay, with one significant exception: New York’s Good Cause eviction law now caps rent increases for some market-rate apartments at 8.82 percent. So it is important to know whether Good Cause applies to your apartment.

Rent increases also depend on demand. If lots of people are looking for a place to rent, landlords are more inclined to raise the rent to match what they could get if the unit was on the market. In slower times, they may be more motivated to offer renewals with small or no rent increases, or even provide an incentive to renew.

In contrast, in rent-stabilized apartments, landlords can only raise the rent by increments approved by the Rent Guidelines Board. For example, rent increases for a one-year lease starting on or after October 1st, 2023, and before September 30th, 2024, can increase by 2.75 percent. Two-year leases can be increased by 5.25 percent. 

So while owners may consider a reasonable offer from a good tenant, they also know they may be able to rent the unit out at a higher price to an incoming tenant.

Brick Underground’s

Gross Rent Calculator

What’s this?

Some New York City landlords offer a free month (or more) at the
beginning or end of a lease. The advertised rent is the net
effective rent.  The net effective rent is less than the
amount you will actually have to pay — known as your gross
rent — during your non-free months.

Brick Underground’s Gross Rent Calculator enables you to
easily calculate your gross rent, make quick apples-to-apples
comparisons between apartments and avoid expensive surprises. All
you’ll need to figure out your gross rent is 1) the net effective
rent, 2) the length of your lease, and 3) how many free months your
landlord is offering.  [Hint: Bookmark this page for easy
reference!]

To learn more about net effective versus gross rents, read What
does ‘net effective rent’ mean?.

Net Monthly Advertised Rent

Per Month

Continue

Length of Lease

Months

Number of Free Months

Months

If the landlord is offering partial months free, enter it
with a decimal point. For example, 6 weeks free rent should
be entered as 1.5 months.

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Your Real Monthly Rent:

Per Month

Find Rentals Offering Concessions »

2. Point out your history 

Landlords generally want to keep tenants in an apartment because finding new renters can be costly, especially if renovations or updates are needed before the place can be put back on the market.

“Some landlords do not want to deal with a lost month of vacancy plus doing any painting, cleaning, and repairs,” said Scotty Elyanow, a broker at Compass.

So if you’ve been a good tenant who always pays your rent on time, make that case to your landlord, who may be less inclined to raise your rent to the level it pushes you out. 

Elyanow suggested writing a friendly letter to your managing agent or landlord explaining your spotless track record. You might even appeal to their “better angels,” he said, describing how you love your apartment and building and wish to stay for a long time. 

3. Stay calm and ask politely 

Be respectful when approaching your lease renewal and negotiating against an increase or for a reduction. Don’t wait until the last minute.

Tenant attorney Sam Himmelstein, a former partner at Himmelstein McConnell Gribben & Joseph (now retired), advised tenants to say, “I’d like to renew at the same rent,” and see how the landlord responds. 

Some landlords may not want to negotiate, but many will, Elyanow said. “Keep trying to negotiate with the landlord and know when your deadline is to respond to any final renewal.”

4. Do your research

If you’re presented with a rent increase, it pays to check what similar-sized apartments are renting for in the neighborhood on real estate listing and brokerage sites. If you are arguing against paying more, it’s better to make a case for yourself by presenting some numbers. 

Catharine Grad, a tenant attorney at Himmelstein McConnell Gribben & Joseph, said telling your landlord that you’ve lost your job isn’t your best strategy. Think about how you can make the best case for yourself. “Tenants need to figure out what they have to give,” she said. That might simply be that you can continue to pay at the same rate. 

5. Get intel from your neighbors 

Gramercy renter Jennifer C. found out that her neighbors in a similar-sized apartment were offered an incentive for starting renewal negotiations early and brought it up to her landlord.

“We were not offered that same deal, so I leveraged it,” she said. The end result? She negotiated her rent increase down by nearly 50 percent. 

This type of bargaining can also occasionally work for rent-stabilized apartments. One renter says he saw a similar apartment in his building going for hundreds of dollars less than his rent-stabilized place. He told the landlord he would apply for the other apartment to save money.

“It went back and forth, and eventually, they conceded and gave me the same lower rate,” he said. 

6. Small landlords might be more willing to negotiate

Some landlords and management companies, especially those in larger buildings or complexes, use software that sets rental rates according to real-time market conditions, seasonal trends, competitor prices, and other metrics. 

However, analytics programs can be expensive for landlords of smaller buildings. A vacancy hurts Mom-and-pop landlords more than a larger rental building, too, meaning their decisions may rely more on a gut check. Even more so if you rent an apartment in a private house: Are you a respectful, quiet tenant who pays the rent on time? If so, they may be more willing to give you a break when your lease is up.

7. Make the case for an upgrade—or repairs 

In a slow market, if your rent is going up, you might be able to ask the landlord to make a significant replacement or repair. One renter worked with a landlord who didn’t raise the rent one year but wanted to increase it by $150 per month the next. He negotiated it down to $100 and got a bathroom renovation.

“We were willing to pay more to have something a little nicer,” he said.

What if you have been asking for repairs to your apartment, to no avail? It’s worth mentioning that history when it’s time to renew the lease. While bringing up a laundry list of necessary improvements could make for a tense lease-renewal conversation, you could tactfully remind management about any ongoing issues—for example, the elevator renovation that took 12 weeks instead of the scheduled four. 

Read “11 things NYC landlords are required to provide, and 11 they’re not that might surprise you” for possible leverage. 

8. If the rent is rising, ask for a two-year lease

Asking for a longer lease can lock in the rate and means you avoid going through negotiations again 12 months later. So consider going this route if you like your apartment and are committed to staying in your neighborhood. Not all landlords will be open to giving you a two-year lease, but there’s no harm in asking.

—Earlier versions of this article contained reporting and writing by Lucy Cohen Blatter, Donna Airoldi, Nikki Mascali, and Emily Myers.

New construction starter homes have become a thing of the past as costs continue to rise, according to a report from Cotality. More buyers are flocking to a new kind of starter home, which is older and smaller.