More Home Loans Under 3%

Posted on 2/09/2019  
More Home Loans Under 3%

A new report from RateCity predicts that home loans starting with a 2 could become the new norm for owner occupiers. RateCity research director Sally Tindall is predicting the rate levels could even drop below 2.5% if both anticipated rate reductions by the Reserve Bank eventuate.

“From here on in, lenders are going to be hard pressed to pass RBA cuts on in full, but rivalry in the home loan market will keep pushing rates down, even if it's not by as much as the RBA would like," says Tindall.

“This pressure will force more banks to offer owner-occupier rates under 3%, especially for people with a decent amount of equity in their property.”

Currently, 28 non-major lenders already have rates under 3% for fixed rate loans, and even major banks have some fixed rates lower than their standard variable rates – a sign that the banks are expecting further reductions in the cash rate, says Tindall. 

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