The Reserve Bank of Australia maintained the cash rate at 0.1%.

The central bank maintains that it doesn’t see any possibility for a rate increase until inflationary and unemployment targets are met, which, in its current forecast, will be at around 2023.

The RBA had previously intended to increase the cash rate by 20% by 2024.

However, the major banks predict a faster rate rise. CommBank predicts that the first rate increase will occur in November 2022.

Wealthi’s cofounder Peter Esho stated that the RBA could be affected by inflationary pressures within the next few weeks.

“The RBA governor will spend the next few months articulating the new case towards opening the door and reassessing options,” he said.

“We think the euphoria in the residential real estate market will start to moderate and bring with it a much-needed reality check.”

“Short term real estate gains are good vanity metrics for investors, but the long-term investment environment is more important to maintain.”

Meanwhile, several lenders have made some changes their home loan rates in the lead up to the RBA’s decision.

Bank of Queensland

Bank of Queensland has increased residential fixed rates at a discount of 10%

This rate increase applies to all fixed-rate rates.

  • Residential Fixed 1 yr Discount Rate <80% – 2.39% p.a. (3.19% p.a. Comparative rate
  • Residential Fixed 2 yrs Discount Rate <80% – 2.09% p.a. ( 3.08%% p.a. Comparative rate
  • Residential Fixed 3 yrs Discount Rate <80% – 2.29% p.a. ( 3.05%% p.a. Comparative rate
  • Residential Fixed 4 yrs Discount Rate <80% – 2.69% p.a. ( 3.12%% p.a. Comparative rate
  • Residential Fixed 5 yrs Discount Rate <80% – 2.79% p.a. ( 3.14%% p.a. Comparative rate

Loans with LVRs of up to 90% are eligible for higher fixed rates.

People’s Choice

People’s Choice, an employee-owned company, has adjusted its fixed rate and variable rate to accommodate residential and investment loans.

Here are some changes that you need to be aware of

  • Residential Fixed P&I 4 yrs– From 25bps to 2.79 per annum (4.08% p.a. Comparative rate
  • Home Loan Package Owner Occupied Fixed P&I 5 yrs ≤80% – – Increased by 5bps to 2.899% p.a. (3.09% p.a. Comparison rate
  • Investment Fixed P&I 4 yrs– 25bps to 2.99% per year (4.57% p.a. Comparative rate
  • Home Loan Package Investment Fixed P&I 5 yrs ≤80% – up by 5bps to 3.19% p.a. (3.38% p.a. Comparative rate
  • Home Loan Package Standard Variable P&I ≤80%35bps drop to 2.49% (2.94% annually). Comparable rate
  • Home Loan Package Investment Standard Variable P&I ≤80%35 bps less to 2.79% (3.23% annually). Comparative rate

UBank

UBank, an online lender made rate changes for its investor loans products.

It has cut its variable rate UHomeLoan P&I Discount OfferFrom 21bps to 23% p.a. (2.34% p.a. Comparative rate

The fixed rates offered by the bank to investors were also increased.

  • Inv UHomeLoan Fixed Rate IO 3 years– From 15bps to 2.39% per year (2.39% p.a. Comparative rate
  • Inv UHomeLoan Fixed P&I 3 yrs– Maximum 15bps up to 2.24% per a year (2.34% p.a. Comparative rate
  • Fixed IO for UHomeLoan inv for 5 years– From 15bps to 2.79 p.a. (2.54% p.a. Comparative rate
  • Inv UHomeLoan Fixed P&I 5 yrs– From 10bps to 2.64% per year (2.48% p.a. Comparative rate

UBank also increased the fixed rates it offers to owner-occupiers. These are just some examples of these changes.

  • UHomeLoan Fixed P&I 3 yrs– 24bps to 2.09 per annum (2.19% per year). Comparative rate
  • UHomeLoan Fixed Intensity PI 3 Years 80-85%– As high as 2.29% per. (2.35% p.a. Comparative rate
  • UHomeLoan Fixed interest IO 3 Years 80-85%– 25bps to 2.54% per year (2.41% p.a. Comparative rate

Homestar Finance

Homestar Finance, a non-bank, followed the trend of a lower one-year fixed rate and higher long-term rates.

The most significant change was the 70bps increment in its interest rate 2-Year Star Fixed P&I For the owner-occupier. Get it now at 2.49% per annum (2.19% p.a. Comparative rate

These are other Homestar Finance changes to its investor and owner-occupier products:

  • Investment Star Fixed P&I Fixed 1 yr 80%– Drop 10bps to 2.49p.a. (2.34% p.a. Comparative rate
  • Investment Star Fixed P&I Fixed 3 yrs 80%– Up to 2.89% per annum – up to 30bps (2.47% p.a. Comparative rate
  • Star Fixed P&I 1 yr 80% – 10bps reduction to 2.29% per annum (2.14% p.a. Comparative rate
  • Star Fixed P&I 3 yrs 80%– 30bps upto 2.69% p.a. (2.27% p.a. Comparative rate

Australian Military Bank

Australian Military Bank members have made significant rate changes over the past month.

The bank lowered its standard variable interest rate by 159bps, to 3.09% (3.13%) per annum. Comparison rate

MOVE Bank

MOVE Bank announced an increase of 10bps in its rates Lockit Fixed 3-year Special OfferThe current rate is 1.99% per annum (3.24% p.a. Comparative rate

Aussie

Aussie has reduced variable and fixed loans amounts by as much as 20%

These are just a few of the major changes that have taken place:

  • Elevate Variable P&I 80% – Dropped by 20bps to 1.99% (2.03% per annum). Comparative rate
  • Elevate Fixed 1 yr P&I– 10bps drop to 1.89% p.a. (2.65% p.a. Comparative rate
  • Edge Variable P&I Special Offer – Dropped by 20bps to 1.99% (2.02% per annum). Comparative rate
  • Edge P&I Fixed 1 yr Special Offer– 10bps down to 1.89% per year (2.64% p.a. Comparative rate

These changes also apply to products with an offset account feature.

AMP Bank

AMP Bank lowered the owner-occupier variable interest rates in its Professional Package as much as 10bps

Recently, the bank has made reductions up to 40bps to its investment variable rates for the exact same product.

  • Professional Package Owner Occupied P&I ≤60% 100-499k– 10bps reduction at 2.19% p.a. (2.61% p.a. Comparative rate
  • Professional Package Owner Occupied P&I 60-80% 100-499k– Down 10bps to 2.244% per annum (2.66% p.a. Comparative rate
  • Professional Package Owner Occupied P&I 80-90% 100-499k– 10bps decrease to 2.544% per annum (2.95% p.a. Comparative rate

Suncorp Bank

Suncorp Bank made several changes to its variable rates and fixed rates for owners and investors.

These are the most important changes:

  • Investment Home Package Plus P&I Fixed 5 yrs ≤80% Special Offer35bps increase up to 2.98% per annum (3.34% p.a. Comparative rate
  • Investment Home Package Plus P&I Fixed 1 yr 80-90% Special Offer– From 3.45% to 4.8% per year, up to 24bps to 2.58% Comparative rate
  • Home Package Plus P&I Fixed 5 yrs ≤80% Special Offer– as high as 2.78% per annum (3.06%/p.a. Comparative rate
  • Investment Back to Basics P&I 70-80% Special Offer31bps reduction to 2.48% per annum (2.49% p.a. Comparative rate
  • Back to Basics Better Together P&I 70-80% Special Offer21bps drop to 2.23% per annum (2.24% p.a. Comparative rate
  • Back to Basics Better Together P&I ≤70% Special Offer – 11bps decrease to 2.18% per year (2.19% p.a. Comparative rate