15 lenders lower home loan rates before RBA meeting

Royal National Italian Premier Michele Bullock at a press conference. Image: Newswire / Nikki Short

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Fifteen Australian lenders have also lowered variable rates since early April, in addition to the cuts in cash rates in February, as competition for mortgages has intensified ahead of next week’s RBA meeting.

Since April 1, the latest CANSTAR Rate Tracking has revealed the highest Australian banks among Australian banks, which have promoted new customer variable rates, including Commonwealth Bank, Westside, Bank of Queensland, Bank of Queensland, Newcastle Permanent, Big Bank, Big Bank, AMP Bank, Bank of Australia, Bank of China, Melbourne Bank, Melbourne, Bank of China, Defence Bank, McQuary, McQuary Bank, Somerer Bank.

The lowest variable interest rate is currently 5.59%, while canstar.com.au shows that 35 lenders offer at least one variable rate below 5.75%.

Kanstall predicts that at Tuesday’s Australian Emperor’s Board of Directors, more than 30 lenders can offer at least one advertising variable interest rate below 5.50%.

Meanwhile, the rate of lowest variability may drop below 5.40%, while the new average existing owner variability may drop to 5.81%.

According to Canstar, at least 30 lenders have also cut fixed home loan rates since April, including ANZ, NAB and Macquarie Bank.

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As a result, there are now fixed terms starting from “4” with fixed rates offered by Queensland Bank and Police Bank below 5%.

Sally Tindall, director of data insights at canstar.com.au, said Australia’s mortgage market is busy with healthy competition.

“If cash rates are cut in May, we expect competition in the market will be checked with the borrower’s new tax rate and ideally compare it to the rest,” she said.

“If the cash rate drops to 3.85%, the variable interest rate occupied by the average owner drops below 6%, but borrowers can do better. We expect that we expect more than 30 lenders to offer loans at least 5.50%.

“All of these changes in rates are good news for Australians with variable home loans, but only if they take advantage of their competitors.

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“While the vast majority of banks should cut the next cash rate in full to their existing variable customers, the reductions we see outside the RCMP decisions are usually only for new businesses or those who are ready to lock in their rates.

“Borrowers should use the next few days to take stock of their interest rates and count their place in their backpack before potential cash reductions, pick up the phone if needed and then bargain with the bank at a lower interest rate.”

All of all four banks are forecasting a lower cash rate on Tuesday, with NAB expecting to lower it to 3.60% twice.

ANZ also updated its cash rate forecast, cutting a cut next Tuesday, saying the move is “more likely”.

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It is still expected to cut three Australian pantry in total, but this shifts the timing of the following two cuts to August before moving it to the first quarter of 2026 (previously July and August).

For owners who have $600,000 in debt and have a remaining 25-year loan occupation, a 0.25 percentage point loan point cut could reduce monthly repayments by $91, assuming that the bank will pass it entirely through existing variable-rate borrowers.