The program is designed to help mortgage customers make the switch to a lower rate, allowing them to save money.
Improvements to the mining industry and a robust economy could lead to the first round of hikes
Latest figures from APRA showed that interest-only loans slumped by $36 million for the second half of the year.
The projected fall in the unemployment rate to 5% next year may signal the bank to raise cash rates.
These owner-occupiers with interest-only loans were not automatically switched to principal-and-interest during the agreed upon mark, according to ASIC
The central bank has a history of cutting official interest rates when house prices soften
Other factors had contributed to the banks’ interest rate increases, including the desire to boost profitability
Sluggish wage growth and low inflation kept the low cash rate environment intact.