Borrow
Home loan rates tumble despite RBA’s inaction
Ahead of the RBA’s announcement of Australia’s official cash rate, new research has found that the major four banks are reducing the cost of credit to consumers.
Home loan rates tumble despite RBA’s inaction
Ahead of the RBA’s announcement of Australia’s official cash rate, new research has found that the major four banks are reducing the cost of credit to consumers.
Data released by Rate City shows the big four banks, which together hold nearly three in four home loans, have shaved their lowest variable rate by an average of 0.25 per cent in the last six months for new customers, despite the RBA holding rates.
In total, the research showed that since 19 March, 90 lenders have reduced their variable interest rate on at least one product they were offering to consumers.
Rate City’s research director, Sally Tindall, said a record number of people have refinanced in the last six months to take advantage of the low rates on offer; however, there are still hundreds of thousands of home owners overpaying on their mortgage.
“The average existing owner-occupier is on a rate of 3.22 per cent. That’s 0.65 per cent higher than what the big four banks are on average offering new customers for a basic variable loan,” she said.
While pointing out the big four have reduced their rates, Ms Tindall said mortgage-holders that shop around can get a better rate.
“There are 12 lenders now offering home loans below 2 per cent, and the list is growing by the week,” she said.
“At a time when every dollar counts, a rate cut of 0.15 per cent would save the average mortgage holder $33 a month.”
RELATED ARTICLES
About the author
About the author
Loans
The mortgage-regret economy: Why borrower confusion is reshaping Australia’s home-loan playbook
Mortgage regret has become a measurable market force, driving record refinancing, rising arrears off a low base, and a scramble by lenders and brokers to redesign the borrower journey. With the ...Read more
Loans
SME lending becomes the new gold rush as banks shift focus beyond home loans
Mortgage broking is maturing, and the next growth curve is hiding in plain sight: small business credit. With Australia’s SME lending pool topping roughly $631 billion in early 2024 and growing at ...Read more
Loans
First-home buyers' $31k blunder reshapes Australia's mortgage game
Australia’s $11.6 trillion housing market is booming again, but so are regrets among first-time borrowers who moved too quickly. A new wave of early refinances, broker-led interventions and lender ...Read more
Loans
ANZ’s self-employed rethink: mainstreaming cashflow credit in Australian mortgages
ANZ’s policy shift for self-employed borrowers is more than a documentation tweak — it’s a signal that cashflow-based underwriting is moving into the mainstream. 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
The mortgage-regret economy: Why borrower confusion is reshaping Australia’s home-loan playbook
Mortgage regret has become a measurable market force, driving record refinancing, rising arrears off a low base, and a scramble by lenders and brokers to redesign the borrower journey. With the ...Read more
Loans
SME lending becomes the new gold rush as banks shift focus beyond home loans
Mortgage broking is maturing, and the next growth curve is hiding in plain sight: small business credit. With Australia’s SME lending pool topping roughly $631 billion in early 2024 and growing at ...Read more
Loans
First-home buyers' $31k blunder reshapes Australia's mortgage game
Australia’s $11.6 trillion housing market is booming again, but so are regrets among first-time borrowers who moved too quickly. A new wave of early refinances, broker-led interventions and lender ...Read more
Loans
ANZ’s self-employed rethink: mainstreaming cashflow credit in Australian mortgages
ANZ’s policy shift for self-employed borrowers is more than a documentation tweak — it’s a signal that cashflow-based underwriting is moving into the mainstream. 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
