Home loans with 2 at the front are going to become the new norm

PHOTO: Mortgage finance

There are six lenders with variable home loans rates with a two at the front, according to RateCity.com.au.

They expect six to climb to 20 at the next RBA cut, if banks pass on at least 0.20 per cent to borrowers.

RateCity research director Sally Tindall said owner occupier rates starting with a ‘2’ could become the new norm if the RBA made two more cuts to the cash rate.

“With two more rate cuts on the cards, we could see the lowest variable rate drop below 2.60, potentially even below 2.50 per cent.

“From here on in, lenders are going to be hard pressed to pass RBA cuts on in full, but rivalry in the home loan market will keep pushing rates down, even if it’s not by as much as the RBA would like.

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