Mortgage rates are set to hit new lows with the RBA expected to cut rates for the third time in a matter of months.
Rate comparison website InfoChoice said home loan rates are set to crack 2.5 per cent this week, with the Reserve Bank of Australia (RBA) likely to cut interest rates by 0.25 percentage points today.
The lowest advertised home loan rates on InfoChoice’s database of 145 institutions are now around 2.74 per cent.
“There are now well over 100 home loans with advertised rates under 3 per cent but still just two lenders with comparison rates under 3 per cent,” InfoChoice CEO Vadim Taube said.
InfoChoice also said that some popular savings rates have been cut in anticipation of a reduction to the cash rate from the RBA.
RAMS Saver, the ING Savings Maximiser, and the ANZ Progress Saver are among the savings accounts that have seen rate cuts.
“Rate cuts are coming pretty thick and fast now,” Mr Taube said.
“All three have cut their maximum rates this week and more savings account cuts are coming in the next fortnight.”
St George, Bank of Melbourne and BankSA also cut savings account rates.
The highest savings account rate now generally available with an ongoing maximum bonus rate is 2.5 per cent from Bank of Queensland, Greater Bank, MyState Bank and UpSaver.
The RBA will meet this afternoon to determine its October cash rate decision.
[Related: Big 4 bank cuts rates by up to 90bps]
Malavika Santhebennur is the features editor on the mortgages titles at Momentum Media.
Before joining the team in 2019, Malavika held roles with Money Management and Benchmark Media. She has been writing about financial services for the past six years.
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