The cheapest rates ahead of the next likely RBA rate cut on Melbourne Cup day

The cheapest rates ahead of the next likely RBA rate cut on Melbourne Cup day
Diane LeowDecember 7, 2020

Australians with home loans will most likely have to wait until Melbourne Cup day for the next interest rate cut.

Scott Haslem, the UBS Australia chief economist, recently told APP that the Reserve Bank of Australia was unlikely to move until after the September quarter inflation figures were released on October 23.

He suggests the RBA was unlikely to adjust rates at their September and October meetings, making "November the next live meeting."

The 2.5% cash rate is a new record low for borrowers.

Property Observer gleans the market's lowest variable rate is the Smart Finance Horizons Loan home loan at 4.44% variable (4.77% comparison) and the lowest one year fixed rate is 4.39% from Newcastle Permanent.

The lowest three year fixed rate is 4.69% (5.01% comparison) from HomeLoanHQ.

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 August 27:

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

Horizon Loan (Refinance Only)

4.44%

4.77%

Loans.com.au

Blackboard special (Purchases only)

4.49%

4.51%

UBank

UHomeLoan

4.62%

4.62%

Lowest one-year fixed-rate offerings:

Provider

Loan name

Rate

Comparison rate*

Newcastle Permanent

One year fixed rate

4.39%

5.38%

UBank

UHomeLoan 1 year fixed rate

4.48%

4.86%

IMB

Fixed Home Loan ($250k - $500k)

4.59%

5.52%

Lowest three-year fixed-rate offerings:

Provider

Loan name

Rate

Comparison rate*

HomeloanHQ

3 Year Fixed Rate Special

4.69%

5.01%

AMP

Fixed Rate Loan (over $250k) (Professional Package)

4.69%

5.56%

UBank

UHomeLoan 3 year fixed rate

4.73%

4.79%

 


Picture courtesy of SilverStack/ flickr.

 

Diane Leow

Diane has spent her entire career in the world of digital. She is passionate about delivering the best content to a world that is becoming increasingly jaded by the news. She also believes in the importance of great journalism and how it can change the world. Oh, she also drinks a lot of coffee.

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