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RBA rate cut commentary from InfoChoice

Announcement posted by Infochoice 04 Jun 2019

All your commentary and data on rate cuts is available from InfoChoice


RBA rate cut commentary  

 

The Reserve Bank of Australia is expected to deliver at least one 0.25 percentage point rate cut in June and perhaps more cuts before the end of 2019. Weak inflation and property price data are underpinning an expected RBA easing of monetary policy in Australia.

 

Lenders have already started a rate cutting war, as wholesale funding costs fall and competition for price-conscious borrowers heats up.

 

“Australia already has historically low home loan rates right now,” said Vadim Taube, InfoChoice chief executive officer.

 

“Any new rate cuts from the RBA will make borrowing as cheap as it has ever been in this country,” said Mr Taube.

 

“Greater Bank’s 2.99 per cent (comparison rate 4.62 per cent*) fixed rate for 12 months is the lowest headline home loan rate we have ever seen.”

 

“And a new variable home loan headline rate of 3.29 per cent (comparison rate 3.34 per cent) from Mortgage House is getting some attention from refinancers and value hunters.”

 

“The big banks are sometimes slow to pass RBA rate cuts onto borrowers but following the Hayne Royal Commission and recent strong words from the treasurer Josh Frydenberg, we expect all four big banks to quickly fall into line with the RBA’s rate movements.”

 

“We expect all the banks and other lenders to pass through any RBA rate cut in full,” said Mr Taube.

 “We are already seeing some of the smaller lenders moving their variable and fixed rates down, ahead of the RBA meeting.”

 If the RBA chooses to leave rates unchanged, Vadim Taube said borrowers could organise a big rate cut for themselves, simply by comparing their own mortgage rate with the best rates now in the market.

 “Many borrowers are now paying 4.5 per cent plus on their home loan.”

 “By refinancing to a loan around 3.5 per cent a borrower would be give themselves the equivalent of four RBA rate cuts of 0.25 percentage points each.”

 InfoChoice can provide all the data, commentary, research and market information you need for your story. www.infochoice.com.au.

  Please contact InfoChoice’s Jason Bryce on 0428 777 727 or Vadim Taube 0403 580 794 or email media.manager@infochoice.com.au.

 

*Comparison rate is based on a secured loan of $150,000 over the term of 25 years. WARNING: These comparison rates apply only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and costs savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan

 

InfoChoice is a leading Australian comparison website for retail banking and personal finance products. We’ve been helping Aussies find great offers on everything from credit cards and home loans to insurance, energy and more for over 25 years. Our mission is to help consumers make an informed purchasing by bringing together the most comprehensive list of financial products on the market today. At InfoChoice, we strive to be:

  • Comprehensive. We compare more than 3500 individual products from more than 160 providers within Australia to offer you the best value.

  • Informative. We know how important it is for you to crunch the numbers before buying. Our calculators help you understand the cost of different products over the long term and show you the potential savings.

 

 

Jason Bryce

Journalist & Content Manager

m 0428 777 727

a Level 13, 10 Queens Road Melbourne VIC 3004

e Jason.bryce@infochoice.com.au

infochoice.com.au