Mortgage relief 'on the horizon'
Residential property owners may be in for some surprise mortgage relief amid talk that the nation's big four banks are contemplating self-initiated interest rate cuts.
According to a News Limited report, the country's largest lenders are considering slashing rates out of cycle with the Reserve Bank of Australia's monthly meeting.
TS Lim, Bell-Potter Securities analyst, expects that at least one of the four major banks will make the decision to do this in the next three months.
"They won't be aggressive when they cut outside the RBA's movements but I think at least one of them will cut in February or March, which will really force the others to act in response," Mr Lim explained.
Experts tip that Westpac may cut rates by up to six basis points - delivering annual savings of $160 for those who hold a mortgage worth $320,000.
Senior UBS analyst Scott Haslem also weighed in on the subject, saying it was "very likely" that banks would make a move on their own in an attempt to bring in new customers.
"Global funding costs have come down and, while banks are now sourcing their funding from other sources, it does play a big part," Mr Haslem explained.