Rate roundup: The lenders making home loan moves amid RBA hold

The central bank rounded out 2024 with yet another cash rate hold, officially pushing prospects for widespread home loan rate cuts into 2025. 

"The board is gaining some confidence that inflationary pressures are declining in line with these recent forecasts, but risks remain," the RBA board said in the wake of its December meeting.

The cash rate has remained at what is now a 13 year high of 4.35% since November 2023 as the RBA attempts to wrangle inflation without causing unemployment to spike.

And while hopes of a February cut remain, as is most notably predicted by CommBank economists, the likelihood of a later start to cuts appears to increase.

Australia's unemployment rate dropped to 3.9% on a seasonally adjusted basis in November, Australian Bureau of Statistics (ABS) data released on Thursday revealed.

That could be bad news for embattled borrowers.

Unemployment and inflation tend to move in opposite directions, and the RBA likely won't loosen the cash rate reins until inflation is moving sustainably back into its target range.

But amid this week's RBA non-event, there were notable moves from home loan lenders. Let's dissect them now.

Pepper Money launches 40-year home loan product

Non-bank lender Pepper Money is officially advertising 40 year home loan terms to eligible borrowers of all shapes and sizes.

Previously, 40-year mortgages have been available from various lenders to borrowers in unique circumstances and select groups, such as first home buyers.

Pepper Money's move seemingly marks the first time such an option has been advertised to the broader market.

Home loans offered by the lender currently advertise variable and fixed rates each starting at 6.84% p.a. (comparison rates* from 7.02% p.a.)

Queensland mutual cuts variable rates to as low as 5.89% p.a.

Customer-owned Queensland Country Bank slashed its variable, packaged home loan rate to a special offer 5.89% p.a. for owner-occupiers (6.24% p.a. comparison rate* for principal and interest repayments and 6.23% p.a. comparison rate* for interest only repayments).

Meanwhile, investors could take advantage of a special rate of 6.09% p.a. (6.44% p.a. comparison rate* for principal and interest repayments and 6.42% p.a. comparison rate* for interest only repayments).

Those rates were dropped by between 10 and 30 basis points on Thursday.

Newcastle Permanent hikes fixed rates by up to 20 basis points

But it wasn't all positive news on the home loan market this week.

Newcastle Permanent increased many of its fixed rates by as much as 20 basis points.

New fixed rates for owner-occupiers include:

Product	Change	New rate	Comparison rate*
Premium Plus Package (special offer) One year fixed	+10bp	5.89%	7.92%
Premium Plus Package (special offer) Two years fixed	+20bp	5.69%	7.69%
Premium Plus Package (special offer) Three years fixed	+10bp	5.59%	7.48%

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_{Image by Ambitious Studio* | Rick Barrett on Unsplash}