Big banks tipped to cut mortgage rates

Banking experts believe the big banks are considering trimming their variable mortgage rates in the coming months.

A senior banking executive said yesterday he was anticipating a downward move from one of the major banks before winter, if the current lending margins remained and if official rates stayed on hold.

“The yield curve has certainly flattened out at the wholesale market, so now it is just a matter of how long, and will it be sustainable?” he said.

“In order for them to make that decision, they will need to see a couple of months at this level. And if banks determine it will be sustainable at these levels, you will see an aggressive bank like NAB lower their interest rates. Then watch the others follow."

Yellow Brick Road founder Mark Bouris believes it will only be a matter of time before one of the four major banks lowers their variable rates.

Source: The Daily Telegraph