Mortgage Game-Changer: RBA Rate Cut on the Horizon & Fixed Rates Below 5%!

The RBA Rate Cut: It’s Looking More Likely!

The air is thick with anticipation in the Australian mortgage market! Following sluggish retail and building data, all of the ‘Big Four’ banks (ANZ, Commonwealth Bank, Westpac, and NAB) are now predicting a 0.25% cut to the official cash rate at the upcoming Reserve Bank of Australia (RBA) meeting next week. If this happens, the cash rate will drop from 3.85% to 3.60% – a significant move that could translate into real savings for you.

ANZ has even jumped the gun, boldly slashing its fixed mortgage rates by up to 0.35 percentage points across one- to five-year terms before the RBA’s announcement. This proactive step by a major bank is a strong indicator that they’re confident a rate cut is on its way. ANZ’s two-year fixed rate now stands at an impressive 5.19% – the lowest among the major players!

This is a pivotal moment for Australian homeowners. With an RBA rate cut appearing more certain, now’s the time to review your mortgage strategy.

– Ez Mortgage Broker

The ‘Fours’ Are Back! 13 Lenders Offering Fixed Rates Below 5%¹

While ANZ is making headlines among the big banks, the real excitement in the market is the growing number of lenders now offering fixed rates below 5%! That’s right – thirteen lenders across Australia are currently advertising at least one fixed mortgage rate below 5% for owner-occupiers paying principal and interest.

This intensifying competition means more options and potentially greater savings for you. These rates signal that lenders are eager to attract borrowers looking for the stability of a fixed loan, especially as the RBA looks set to ease rates.

Here are some of the lenders who have already broken the 5% barrier with their fixed rate offerings:

• Australian Mutual Bank
• Bank of Queensland (BOQ)
• BankVic
• Community First Bank
• Easy Street
• GMCU
• Greater Bank
• Pacific Mortgage Group
• Police Bank
• People’s Choice Credit Union
• Queensland Country Bank
• Tiimely Home
• (And more! The market is dynamic, and new offers are emerging.)

This means if you’re looking to lock in your rate, you shouldn’t settle for anything starting with a five or a six. As Canstar’s Sally Tindall advises, “You should be looking in the fours!”

Why Consider Fixed Rates Now?

With the strong possibility of an RBA rate cut and so many lenders offering competitive fixed rates, now is an opportune moment to explore your options. Locking in a fixed rate can provide:

• Payment Certainty: Your repayments remain the same for the fixed term, making budgeting easier.
• Protection from Future Hikes: If variable rates climb again after your fixed term, you’re protected for the duration.
• Potential for Immediate Savings: With rates currently very attractive, you could reduce your monthly repayments right now. A 0.25% cut in the cash rate could lower monthly repayments by around $90 for an average $600,000 loan with 25 years remaining. Imagine the savings with further cuts!

Don’t navigate the Mortgage Maze Alone – Contact ez mortgage broker!

The mortgage market is buzzing with activity, and knowing which fixed rate, for what term, from which lender, is right for your specific circumstances can be complex. That’s where we come in!

At EZ Mortgage Broker, we’re constantly monitoring the market, including these fantastic sub-5% fixed rate offers and the latest RBA movements. We can assess your situation, compare deals from a wide range of lenders (not just the big banks!), and help you find the best home loan solution to suit your financial goals.

Ready to explore if fixed rates below 5% could be your next smart move? Or simply want to understand how a potential RBA rate cut might impact your current loan?

Contact us today! Call 1300 050 099 or email [email protected] for a free, no-obligation consultation. Let us help you find the perfect mortgage.

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1. All Rates and Fees are indicative only and are subject to change without notice. Also, the information is correct at the time of writing the article. We don't guarantee the 100% accuracy of the information, as Financial Institutions can be quite complex and can make changes without notifying us. ↩︎