Best Rates of the Week

05th Apr, 2024 | Articles, First Home Buyer, Investor

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The results from the Australian Financial Review’s latest quarterly survey of economists indicates that a majority now predict the cash rate will remain on hold until November, while financial markets project a rate cut will occur in September. Both groups have consistently pushed out the timing of the first cut over the past 12 months. A sizeable minority of economist surveyed believe a rate cut is more likely to occur in 2025. They reason that a tight labour market, continued low unemployment, rising house prices and a share market at record levels, suggest the effects of a higher cash rate may still be filtering through the economy. Moreover, while recent data indicates inflation is easing, it remains high, and the RBA expects it to remain above target for a while yet. In the latest quarterly survey, half of the respondents predict at least two rate reductions this year and more next year. The median forecast is for the cash rate to bottom at 3.1 per cent, which would be equivalent to five cuts of 0.25 percentage points each. Among the big four banks, Gareth Aird at Commonwealth Bank has forecast the most aggressive pace of easing, with six moves in total. Westpac and National Australia Bank predict five reductions and ANZ anticipates just three. However, a sizable majority of analysts suggest that the Reserve Bank will struggle to lower rates this year, citing sticky inflation and further stimulatory fiscal policy as the main reasons for a continued pause.

There are no entries to the table this week. Heritage Bank is offering owner-occupiers (including those constructing) a variable P&I rate of 6.09% (6.11%*). The rate is available for loans from $150,000 up to $999,999.99, with a maximum LVR of 80%. There are no ongoing monthly or annual fees. However, a $210 settlement fee is payable by the borrower. Other lenders offering competitive Owner-Occupied variable P&I rates include Bank of Sydney 6.09% (6.15%*), Adelaide Bank 6.09% (6.15%*), ING 6.14% (6.18%*) and Bank Australia 6.14% (6.19%*). ING is offering Investors a variable P&I rate of 6.29% (6.33%). The rate is available for loans from $150,000 up to $2M, with a maximum LVR of 80%. There are no ongoing monthly, annual fees or transactional fees but a $299 settlement fee is payable by the borrower. A valuation fee is payable, but ING will cover up to $225 of the valuation fee (GST inclusive) for the first valuation/property. Other leders offering competitive Investor variable P&I rates include Heritage Bank 6.34% (6.36%*), Beyond Bank 6.34% (6.38%*) and Bank Australia 6.34% (6.39%*). Home loan products have varying fees and product features, as well as differing minimum and maximum loan amounts and LVR restrictions. We recommend you consult a broker to assess the products on offer to help choose the one that best suits your needs.

*Comparison Rate