The cheapest home loan rates on offer starting at 4.79% as just two economists tip March rate cut in Bloomberg survey
Westpac chief economist Bill Evans has joined the other major bank economists by tipping the Reserve Bank to leave the cash rate on hold tomorrow at 3%.
Of the 29 economists surveyed by Bloomberg, 27 expect no change in the cash rate tomorrow while 25 out of 29 expect the RBA to hold firm in April as well.
The only economists tipping the RBA to cut the cash rate tomorrow are French bank BNP Paribas’s senior Asia economist Dominic Bryant and Macquarie Bank’s chief economist Richard Gibbs.
Not only has Westpac come back into line with the big four banks and most other economists, but it has also pushed back its expectations for the next rate cut from February to June.
A June cash rate of 2.75% or 2.50% is tipped by 17 out of 29 economists.
As the timetable for future RBA cash rate cuts appears to be pushed back towards the middle of the year – and may be at an end according to HBSC chief economist Paul Bloxham – borrowers can source fixed and variable home loan rates with a “four” in front of them as lenders compete for business in a slow-growth credit environment.
Two non-bank lenders are offering variable home loans at 4.99% - Easy Street, owned and operated by Sydney-based Community First Credit Union and a refinance-only home loan from State Custodians.
These are the lowest advertised variable and fixed mortgage rates based on listings on mortgage comparison websites ratecity.com.au, Mozo.com.au, infochoice.com.au and homeloanfinder.com.au as of March 4:
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* |
State Custodians | State Custodians Peak Performance Offset (Refinance Only) | 4.99% | 5.38% |
Easy Street | Honeymoon Home Loan Special | 4.99% | 5.70% |
Loans.com.au | Blackboard Special | 5.09% | 5.11% |
Lowest one-year fixed-rate offerings
Provider | Loan name | Rate | Comparison rate* |
Quick Direct | One year fixed | 4.79% | 5.46% |
UBank | UHomeLoan for refinance fixed rate one year | 4.83% | 5.34% |
Loans.com.au | Dream Loan Express | 4.89% | 5.28% |
Lowest three-year fixed-rate offerings
Provider | Loan name | Rate | Comparison rate* |
ME Bank | Member Package SMHL Standard Home Loan | 4.99% | 5.49% |
homeloanHQ | Rate Lock Home Loan | 4.99% | 5.53% |
Teachers Mutual Bank | Teachers Fixed Option Loan
| 4.99% | 5.90% |
*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.