The cheapest home loan offerings in the lead-up to February RBA decision
There are just over two weeks to go until the Reserve Bank’s monetary policy committee meets for the first time in 2013 on February 5 to deliberate on the cash rate.
It currently stands at 3%, with the lowest advertised variable rate on offer being 4.99% from lender Easy Street, owned and operated by Sydney-based Community First Credit Union.
The lowest three-year fixed fixed-rates also start from 4.99%, offered by non-bank lender homeloanHQ, with loans underwritten by a major bank.
Economists are suggesting that the RBA may wait until March to begin cutting rates, but will take a closer look at the December quarter inflation result to be released by the ABS on Wednesday.
With annual inflation expected to track well within the RBA’s annual target band of 2% to 3%, a low quarterly inflation reading may give the RBA the green light to cut rates – depending on its assessment on other factors such as unemployment, mortgage growth and retail spending.
AMP Capital Investors chief economist Shane Oliver, who expects at least three rate cuts this year, points out that there was only bright note in December economic data – a record number of car sales.
Overall, he says, “the Australian economy remains sub-par, particularly so given that the RBA started cutting interest rates over a year ago”.
Regardless of what the RBA decides to do, astute borrowers will be examining their current mortgage and lender with expectations that rates will fall further this year.
These are the lowest advertised mortgage rates based on listings by ratecity.com.au, Mozo.com.au, infochoice.com.au and homeloanfinder.com.au as of January 21:
Where the headline rate is the same, the lender with the lowest comparison rate gets preference.
Lowest variable rate offerings:
Provider | Loan name | Rate | Comparison rate* |
Easy Street | Honeymoon Home Loan Special | 4.99% | 5.77% |
Nationwide Mortgage | True Saver Home Loan | 5.17% | 5.18% |
Mortgage View | Mortgage View Pro Pack, New Year Special | 5.17% | 5.19% |
Lowest one-year fixed-rate offerings
Provider | Loan name | Rate | Comparison rate* |
Greater Building Society | Fixed Rate Ultimate Home Loans | 4.99% | 5.80% |
Newcastle Permanent | Fixed Rate Home Loan | 4.99% | 5.98% |
Hunter United | Fixed Rate Home Loan | 4.99% | 5.98% |
Lowest three-year fixed-rate offerings
Provider | Loan name | Rate | Comparison rate* |
homeloanHQ | Rate Lock Home Loan | 4.99% | 5.53% |
Resi | Flexi Fix Plus 75 | 5.09% | 5.80% |
UBank | UHomeLoan for refinancing - Fixed Rate Loan | 5.13% | 5.26% |
*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 The Do's and Don’ts of Refinancing Your Existing Home Loan ... and How to Avoid Unnecessary Hurdles.