Borrow
Banks slash rates for new customers – but will the RBA follow?
Lenders are continuing to price in a rate reduction from the Reserve Bank, according to new research.
Banks slash rates for new customers – but will the RBA follow?
Lenders are continuing to price in a rate reduction from the Reserve Bank, according to new research.
Results released by RateCity show that a total of 30 lenders have cut new customer rates this month ahead of Tuesday’s RBA meeting, but only for new customers or those willing to refinance.
Rate City research director Sally Tindall said there was increasing pressure on the banks to do the right thing, particularly as many lenders failed to pass on the last RBA cut to their variable customers.
“Governor [Philip] Lowe believes a rate cut now will help reduce the number of problem loans, but this will only work if the banks pass it on,” she said.
“Record-low rates have been a shot in the arm for the tens of thousands of mortgage-holders who have been able to refinance their loan during COVID.”
However, Mr Tindall pointed out that those who are “desperate” for a rate cut might not benefit if the RBA reduces the rate.
“At the same time, there are hundreds of thousands of Australians who haven’t been so lucky, forced to put their mortgages on hold as they struggle to stay afloat. These are the people who need a rate cut, now more than ever.
“Many people who have had to defer their mortgage or switch to interest-only repayments aren’t being offered the best rates from their lender,” Ms Tindall said.
“Banks should do the right thing by these customers by passing any RBA cut on to them as quickly as possible,” she said.
RELATED ARTICLES
About the author
About the author
Loans
Navigating the Australian student loan landscape: Options for financing your education
Securing financing for post-secondary education is a significant step for many Australians, offering a pathway to advancing career prospects and achieving personal growth. Read more
Loans
Secured vs. unsecured personal loans: Which is right for you?
When considering a personal loan in Australia, one of the first decisions you'll face is whether to opt for a secured or an unsecured loan. Each type has distinct advantages and drawbacks, and the ...Read more
Loans
Weighing up interest-only home loans: What Australian borrowers need to know
Interest-only home loans have become a topic of considerable interest among Australian borrowers, offering a unique approach to home financing. This type of loan allows borrowers to pay only the ...Read more
Loans
Bridging loans demystified: Navigating your next property purchase in Australia
Navigating the property market can be daunting, especially when timing issues arise between selling your current home and purchasing a new one. Bridging loans offers a solution, providing the ...Read more
Loans
Ultimate guide to green loans: Financing sustainable home projects in Australia
As Australians become increasingly conscious of their environmental impact, many are turning to sustainable home improvements to reduce their carbon footprint and enhance energy efficiencyRead more
Loans
CBA launches digital home loan with 10-minute application
According to the bank, Unloan will provide a single low-cost interest rate to borrowers with an application time of as little as ten minutes. Read more
Loans
Are central banks weighing the economic pain of rate hikes?
The hype around interest rate hikes usually centres around the urgent and fundamental need to alleviate the consequences of inflation – but does this monetary policy do more harm than good? Read more
Loans
As rates begin to rise, how much more will new borrowers pay?
Mortgage holders could be asked to pay over $1,000 more per month due to rising interest rates. Read more
Loans
Navigating the Australian student loan landscape: Options for financing your education
Securing financing for post-secondary education is a significant step for many Australians, offering a pathway to advancing career prospects and achieving personal growth. Read more
Loans
Secured vs. unsecured personal loans: Which is right for you?
When considering a personal loan in Australia, one of the first decisions you'll face is whether to opt for a secured or an unsecured loan. Each type has distinct advantages and drawbacks, and the ...Read more
Loans
Weighing up interest-only home loans: What Australian borrowers need to know
Interest-only home loans have become a topic of considerable interest among Australian borrowers, offering a unique approach to home financing. This type of loan allows borrowers to pay only the ...Read more
Loans
Bridging loans demystified: Navigating your next property purchase in Australia
Navigating the property market can be daunting, especially when timing issues arise between selling your current home and purchasing a new one. Bridging loans offers a solution, providing the ...Read more
Loans
Ultimate guide to green loans: Financing sustainable home projects in Australia
As Australians become increasingly conscious of their environmental impact, many are turning to sustainable home improvements to reduce their carbon footprint and enhance energy efficiencyRead more
Loans
CBA launches digital home loan with 10-minute application
According to the bank, Unloan will provide a single low-cost interest rate to borrowers with an application time of as little as ten minutes. Read more
Loans
Are central banks weighing the economic pain of rate hikes?
The hype around interest rate hikes usually centres around the urgent and fundamental need to alleviate the consequences of inflation – but does this monetary policy do more harm than good? Read more
Loans
As rates begin to rise, how much more will new borrowers pay?
Mortgage holders could be asked to pay over $1,000 more per month due to rising interest rates. Read more
