Banks cut mortgage rates by 50 basis points in fierce customer bid
Major Australian lenders including Commonwealth Bank, ANZ, Westpac, and Macquarie lowered home loan rates. A specific investor refinanced a $750,000 mortgage to $920,000 to access better terms.
Banks in Australia are aggressively cutting home loan rates to attract customers ahead of a potential interest rate hike by the Reserve Bank. The Commonwealth Bank reduced rates across multiple products in late June. ANZ and Westpac followed suit immediately, with Macquarie Bank doing the same in July. Kevin Wong successfully refinanced to secure a better rate for his investment property renovation. He switched from a principal and interest loan at 7.29 per cent to an interest-only loan at 6.79 per cent. In this specific deal, he increased his mortgage balance from $750,000 to $920,000 to unlock equity. Mortgage broker Julian Choo noted that many institutions continue lowering product prices.
