Lenders' Early Offers Vs. Brokers' Tactics

We invited Colin O’Loughlin, Director and Mortgage Broker of Arch Brokerage to the webinar back in August 2023. Here’s what he said –

“I think, overall, it looks relatively positive as to what the economists are saying from the Big 4 lenders. This is all based around the cash rate. So, obviously it’s not the interest rate that you are getting because there’s a buffer that’s built into that. That’s how the bank makes its money.

But the cash rate just gives us a bit of an idea of what the RBA is doing. So right now, (17 August 2023) the cash rate is 4.10%. If you look across the board, the only one that is predicting that there’s going to be an increase in the next two years is NAB. So they’re saying that they’re predicting there’s going to be a 0.25% increase in November.

It’s probably worth mentioning that this can be fluid. The bank does update its outlook or its projections on a sort of semi-regular basis. But I think it comes for good reading. So if we look at the likes of Westpac, they’re saying that they predict that the cash rate is going to drop 1.5% from today (17 August 2023) to December 2025. That would be amazing. I think that’s going to be good news for mortgage owners.”