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Lenders expected to lower rates
Lenders are expected to lower interest rates out of cycle despite the RBA keeping the official cash rate on hold this month, according to mortgage broker network 1300HomeLoan.
1300HomeLoan managing director, John Kolenda, said consumers can anticipate lenders reducing their variable rates while fixed rate home loan products are at an all-time low of 4.79 per cent over two years.
Mr Kolenda said it was no surprise to see the RBA keep its official rate on hold at the near record low of three per cent.
"Despite no move from the RBA this month, mortgage holders can expect a further lowering of interest rates by lenders out of cycle," he said.
"The banks have no issues at the moment with cost of funds and we can see them cutting their rates as they aggressively compete for home finance business.
"As the competition intensifies among lenders we could see rates reduced slightly by five to ten basis points over the coming months.
"The major plus for mortgage holders is rates are unlikely to rise for the foreseeable future.
"This situation presents an excellent opportunity to pay down your mortgage."
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