Australian Mortgages Rates To Drop As All Big banks Cut Rates

In Australia, mortgage competition has intensified as the big 4 banks cut their home lending rates in response to the RBA 0.25 per cent rate cut, with the interest rates at their lowest for more than 50 years.

The big four banks National Australia Bank (NAB) , Commonwealth Bank (CBA), Westpac (WBC) passed on the full cut of 0.25 per cent while  ANZ passed on less with a 0.19 per cent reduction.

Atul from home loan marketplace HashChing said that "Recent rate cut will cause a lot of activity in the property market. It is a good news for the first home buyers who are ready to jump in and lock the historically low rates. "

According to The Australian , an analyst Angus Nicholson was quoted as saying the the banks quick move to cut rates could be because of the Labor party threat of launching a Royal Commission on the banking sector as it made a combined $30 billion cash profit in 2015.

For example the  NAB's cut, effective from May 16, would trim about $47 from the average monthly repayment on a 30-year $300,000 mortgage.

In the past, the big four banks had attracted criticism for not passing on in full previous rate cuts, this could spur on many mortgage holders in the country to possibly refinance and fix rates or wait for potentially another cut by the RBA post election.