Several Australian banks have cut home loan interest rates even after the Reserve Bank of Australia decided to keep the official cash rate unchanged.

The surprise cuts are aimed at attracting new borrowers and encouraging existing customers to refinance with better deals.

One lender reduced some fixed mortgage rates by as much as 0.50 percentage points, intensifying competition in the home loan market.

Finance experts say homeowners should compare offers, as many lenders are now providing more competitive rates than before.
The rate cuts come despite ongoing concerns about inflation and uncertainty over the RBA’s next policy move.

For Australian borrowers, the growing competition among banks could mean significant savings on monthly mortgage repayments.