rate-wrap-20-6.jpegThe Reserve Bank of Australia (RBA) board entered into a two-day meeting this week, revealing its latest cash rate decision on Tuesday afternoon.

The central bank chose to keep the rate at 4.35% in June, with its language suggesting a more hawkish approach going forward.

Despite a slowing economy, inflation remains high, and the job market is strong, indicating that interest rates are unlikely to drop in the near future.

But while there mightn't be a cash rate cut on the horizon, struggling homeowners are likely to pick up their refinancing feet sooner rather than later, according to Tiimely Home head of retail Belinda Jackson.

"Many have been holding off refinancing, and with the decision to hold rates, we anticipate the same patterns we've seen in recent months, where individuals under financial pressure continue to seek out savings opportunities," she said.

"We expect an uptick in refinance enquiries with speculation interest rates won't fall until next year."

On top of that, the lender is anticipating an uptick in borrowers seeking fixed rate home loans amid fears rates might not actually fall as expected.

"Customers are finding it more challenging and don't want to be hit with any more rate rises so they may look to fix their interest rate for the next 12 months or longer," Ms Jackson said.

"While you're waiting for the interest rates to decrease, if you can get on a sharp fixed rate, there's potential for savings now rather than waiting and paying at a higher rate until mid-next year."

Auswide Bank slashes variable rates to under 6% p.a.

An influx of suffering refinancers likely means heightened competition among providers of market-leading home loan rates, such as Tiimely Home and, now, Auswide Bank.

The Queensland bank slashed rates for owner-occupiers considering its Basic Home Loan product by as much as 15 basis points to 5.99% p.a. this week.

Product LVR Change New Rate (p.a.) Comparison Rate* (p.a.)
Basic Home Loan ≤60% -10bp 5.99% 6.02%
Basic Home Loan 60-70%</ -15bp 5.99% 6.02%

Competition between lenders was a central point in a market update provided to the bank's shareholders last month.

It also told investors that 23% of its borrowers will roll off fixed rates in financial year 2024-25.

No doubt, Auswide Bank's new variable rate will catch many of their eyes as they assess their options in the current interest rate environment.

AMP cuts fixed rates by up to 20 basis points

And for those looking for a new fixed rate home loan, AMP dropped its advertised rates this week, with both owner-occupiers and investors able to take advantage.

For those looking for a mortgage on their home, the bank's professional package now promises a five-year fixed rate of 6.24% p.a.

The professional package offers access to offset accounts and redraw facilities.

New rates on for owner-occupiers making principal and interest repayments include:

Product Name LVR Change New Rate (p.a.) Comparison Rate* (p.a.)

Professional Package

Five years fixed

≤80% -20bp 6.24% 6.89%

Professional Package Residential

Five years fixed

80-90% -20bp 6.44% 7.02%

Meanwhile, investors might find their ears pricked by these newly-lowered interest rates:

Product Name LVR Change New Rate (p.a.) Comparison Rate* (p.a.)

Professional Package Investment

One year fixed

≤80% -10bp 6.19% 7.22%

Professional Package Investment

Two years fixed

≤80% -5bp 6.09% 7.10%

Professional Package Investment

Five years fixed

≤80% -20bp 6.34% 6.93%

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Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.04% p.a.
6.06% p.a.
$2,408
Principal & Interest
Variable
$0
$530
70%
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5.99% p.a.
5.90% p.a.
$2,396
Principal & Interest
Variable
$0
$0
80%
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6.14% p.a.
6.16% p.a.
$2,434
Principal & Interest
Variable
$0
$250
60%
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Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of .

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