The cheapest fixed and variable mortgage offerings as August 6 RBA cash rate decision looms

Three out of the four major banks – NAB, Commonwealth Bank and Westpac - are tipping the RBA to cut the cash rate to 2.5% on August 6.

The key data release will be the second quarter inflation reading, which is expected to be well within the RBA’s target band of 2.5% giving it scope for further easing, “should that be required to support demand”.

Commonwealth Bank chief economist Michael Blythe said as part of an Australian Financial Review panel of economist that while the medium-term inflation outlook is deteriorating, “inflation in the very near term is set to remain low”.

“Together with an uptrend in unemployment, there will probably be a strong case for a rate cut at the August meeting,” says Blythe.

At the same time, lenders continue to cut their fixed home loan rates with it now being possible to secure a one-year fixed rate closer to 4% than 5%.

On Thursday last week, the Greater Building Society became the second lender to offer a one-year fixed-rate of 4.39%.

These are the lowest advertised variable and fixed mortgage rates based on listings on mortgage comparison websites ratecity.com.auMozo.com.au,  infochoice.com.au and finder.com.au  as of July 22:

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*

Smart finance

Refinance Only - InfoChoice Exclusive Offer

4.69%

5.02%

State Custodians

Peak Performance Offset

4.74%

5.11%

Loans.com.au

Blackboard Special – purchases only

4.75%

4.77%

Lowest one-year fixed-rate offerings

Provider

Loan name

Rate

Comparison rate*

Greater Building Society

Ultimate Home Loan Package Standard Fixed 1 year

4.39%

5.47%

Newcastle Permanent

Residential Fixed 1 year

4.39%

5.66%

iMortgage.com.au

Fusion ProPack 75

4.67%

5.26%

Lowest three-year fixed-rate offerings

Provider

Loan name

Rate

Comparison rate*

HomeloanHQ

Rate Lock Home Loan

4.69%

5.19%

UBank

UHomeLoan for refinancing

4.73%

4.97%

Resi Home Loans

Flexi Fix - 3 Years Fixed Rate

4.78%

5.54%

*A comparison rate includes both the interest rate and the fees and charges relating to a loan, combined into a single percentage figure.

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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