Economists and market watchers broadly expect the Reserve Bank of Australia to cut the cash rate by 25 basis points on Tuesday, bringing it to 3.85%.
Some, however, are tipping a cut as large as 50 basis points, and questions remain over whether this second cut in the current cycle will be fully passed on to borrowers.
The anticipation held steady despite what one might argue was a vaguely disappointing data flow this week.
Wages were found to have lifted 0.9% quarter-on-quarter in the three months to March – up 3.4% over the year – while unemployment continued to track sideways, coming in at 4.1% in April, as per the Australian Bureau of Statistics.
The RBA will be paying close attention to both reads, given the relationship between the labour market and inflation.
Though, neither was too far from the bank's expectations – a point on which most experts agree.
In the meantime, a small handful of lenders adjusted advertised home loan rates. Here are all the details homebuyers, refinancers, and investors need to know:
BankVic hikes variable rates
While one law enforcement-focused bank has dumped home loan rates to below 5% p.a., another has lifted its own mortgage offerings.
BankVic upped rates on its two lowest-rate variable products this week by five basis points.
The lowest variable rate now available to the public is 5.79% p.a. (5.79% p.a. comparison rate*) – up from 5.74% p.a. – an advertised special offer for general owner-occupiers making principal and interest repayments.
However, borrowers might still be tempted to consider the bank given its $3,000 cashback offer remains on the table.
If you're a member of a police force, you might be eligible for the bank's Special Offer Police Variable Rate.
That was also hiked by five basis points to 5.73% p.a. (5.73% p.a. comparison rate*) this week.
Police members might also be able to score as much as $4,000 cashback when securing a BankVic home loan.
G&C Mutual Bank, Unity Bank, & Auswide Bank slash fixed rates
There were also notable shifts in the fixed rate market ahead of the RBA's call.
The largest move in this realm came from Auswide Bank, which dropped two year fixed rates by as much as 1.4%.
Owner-occupiers can now realise a two-year fixed rate of 5.24% p.a. via the lender's special offers (comparison rates* 6.24% p.a. - 6.31% p.a.).
Eligible investors and borrowers making interest only repayments can also access the special offer fixed rate of 5.54% p.a. (comparison rates* 6.29% p.a. - 6.61% p.a.).
At the same time, the recently-merged Unity Bank and G&C Mutual dropped fixed rates by as much as 25 basis points.
The lowest fixed rate in the pair's line up is now 5.30% p.a. (5.38% p.a. comparison rate*), available to eligible owner-occupiers making principal and interest repayments.
Other changes to advertised rates for owner-occupiers made by Unity Bank and G&C Mutual this week include:
| Fixed period | Change | New rate | Comp rate* |
|---|---|---|---|
| One year | -25bp | 5.60% | 5.68% |
| Two years | -20bp | 5.30% | 5.38% |
| Three years | -25bp | 5.45% | 5.53% |
| Four years | -15bp | 5.80% | 5.88% |
| Five years | -15bp | 5.80% | 5.88% |
Summerland Bank also took a knife to two-year fixed rates.
It dropped those on its special offer for borrowers with loan-to-value ratios (LVR) or 60% or less 10 basis points to 5.24% p.a. (6.41% p.a. comparison rate*) for owner-occupiers or 5.34% p.a. (6.94% p.a. comparison rate*) for investors.
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Collections: Mortgage News Interest Rates Cash Rates BankVic Post Collections
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