The Calm Before the Rate Cut Storm? Banks Slash Mortgage Rates Ahead of RBA Decision

Could February Mark the Start of Rate Cuts?

As inflation shows signs of slowing, banks are already adjusting their home loan rates in anticipation of a potential Reserve Bank of Australia (RBA) cash rate cut. With all four big banks now predicting that the first rate cut is just weeks away, borrowers could soon see more competitive mortgage deals.

If the RBA moves to lower the cash rate at its meeting on February 17, it could spark a wave of variable rate cuts, providing relief for homeowners and investors alike. Some lenders aren’t waiting for the central bank’s decision—they’ve already started slashing rates.

Who’s Cutting Rates Now?

Several banks have taken the lead in lowering their mortgage rates this week, hinting at what could be a broader trend if the RBA moves forward with easing monetary policy.

Qudos Bank: No-Frills Rate Drops

Qudos Bank has trimmed its No Frills home loan rates by 10 basis points across both owner-occupier and investor products. While this loan lacks features like an offset account, it provides a competitive, fee-free borrowing option.

Illawarra Credit Union: Cuts Up to 15bp

Illawarra Credit Union has reduced rates on its Bare Essentials and The Works mortgage packages, offering competitive pricing on both low-cost and feature-packed loans.

MOVE Bank: Fixed and Variable Rate Reductions

MOVE Bank, formerly Railways Credit Union, has slashed rates by up to 30 basis points on its Everyday and Offset home loans. The catch? Borrowers must deposit at least $1,500 per month into a MOVE Bank transaction account to secure the best rates.

New Variable Rates for Owner-Occupiers

New Fixed Rates for Owner-Occupiers

What This Means for Borrowers

If the RBA lowers the cash rate in February, banks will likely follow suit with further mortgage rate reductions. Now could be the perfect time to reassess your home loan and explore refinancing options to secure a better deal.

Take Advantage of Lower Rates Today

With major lenders already adjusting their rates, now is the time to review your mortgage and refinance for a better deal. At Vantage Loans, we help borrowers find the most competitive rates and loan features tailored to their financial goals. Don’t wait—get in touch with our team today at 1800 595 500, email [email protected], or visit vantagefinancial.com.au to explore your refinancing options.