Next few weeks expected to remain quiet with most banks likely to hold mortgage rates
Interest rates saw minimal movement over the past week, largely due to the Easter long weekend’s impact on banking operations, financial comparison website RateCity.com.au has reported.
According to Sally Tindall (pictured), research director at RateCity.com.au, the handful of smaller banks and credit unions that adjusted their interest rates opted for reductions on select products rather than increasing any rates.
Abal Bank still led with the lowest advertised variable rate of 5.75%, closely followed by G&C Mutual Bank at 5.80%. In the fixed-rate category, Australian Mutual Bank had the most competitive rates for both two- and three-year terms, with advertised rates of 5.63% and 5.48%, respectively. HSBC holds the lowest rates for one- and four-year terms at 5.79% and 5.69%, while RACQ offers a five-year fixed rate at 5.64%.
Unity Bank has reduced its first home buyer (FHB) owner-occupied variable principal and interest (P&I) loans with a loan-to-value ratio (LVR) of less than 60% by 0.25 percentage points, now at 5.99%. Border Bank has cut its FHB owner-occupied fixed two-year P&I loans with an LVR of 80-95% by 0.20 percentage points to 5.79%. Likewise, QBank has decreased its investment fixed three-year P&I loans by 0.20 percentage points, now at 5.99%.
“We expect the next few weeks will continue to be quiet as most banks stick in a holding pattern when it comes to mortgage rates,” Tindall said. “The latest RBA minutes released on Tuesday reveal the Board did not consider the case for a rate hike at its March meeting – the first time a hike was not considered since April 2022 – and yet another strong sign the next move from the RBA will be down rather than up.
“That said, the minutes made it clear the Board is willing to take its time to consider cash rate cuts, however, big banks CBA and Westpac are still predicting it will be as soon as September.”
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