 | Lenders are expected to once again hold off passing on the full rate cut to borrowers. |
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A guide to the lowest rate home loan offerings fixed and variable as of December 5 as RBA cuts cash rate to 3%
By
Larry Schlesinger
The Reserve Bank has cut the cash rate to 3%, which is its lowest setting since the GFC. NAB, among those lenders to tip a December rate cut, now also expects a further 25 basis point rate cut next year, probably around May. Lenders are expected to once again hold off passing on the full rate cut to borrowers, with about 20 out of the 25 basis points expected to be shaved from variable rates. NAB and Bank of Queensland have already announced they will pass on 20 basis points to borrowers on December 10 and December 21 respectively, while ING Direct will pass on all 25 basis points from December 24. Fixed rates are likely to continue to fall as lenders seek to lock in borrowers and circumvent the government’s ban on mortgage exit fees. These are the lowest advertised mortgage rates based on listings by ratecity.com.au, Mozo.com.au and infochoice.com.au as of December 5: Lowest variable rate offerings:
Lowest one-year fixed-rate offerings
Lowest three-year fixed-rate offerings
*A comparison rate includes both the interest rate and the fees and charges relating to a loan, combined into a single percentage figure. For information on refinancing, watch our free webinar Refinancing and the Interest Rates Riddle |
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