1st Bank has dropped its interest rate to under 6% to a competitive 5.99%

Australian Lenders Are Lowering Variable Rates – What Does It Mean for Borrowers?

In a move that has caught the attention of borrowers across Australia, lenders are starting to lower their variable interest rates, with the first major bank making headlines by dropping its rate to an attractive 5.99%. This shift in the market has sparked discussions about the evolving lending landscape and what it means for homeowners, investors, and those looking to enter the property market.

When will interest rates go down in Australia?

This is the million-dollar question we’d all love to have answered, especially considering the current economic climate. Many nationwide households genuinely feel the financial pinch from the higher interest rates, which have proven to be significantly more burdensome than those experienced during the COVID pandemic.

Should I fix my loan or choose a variable interest rate? 🤓 Discover the Pros and Cons of fixed and variable interest rates.

Choosing between a fixed or variable interest rate option depends on several important factors, including your current financial situation, overall risk tolerance, and prevailing market conditions. In Australia, the Reserve Bank of Australia (RBA) set the cash rate, or interest rate, at 4.35%. It's speculated that we are at the peak of the interest rate cycle.

So when do the big four banks think rates will go down?