Smaller Lenders Offering Lower Rates


Smaller Lenders Offering Lower Rates

Homeowners may be able to take advantage of the competition from smaller banks to negotiate better mortgage rates, despite the Reserve Bank lifting the official interest rate twice this year.

Mike Gill of PEXA says the RBA increases have resulted in more competition in the lending market, which means good opportunities for borrowers.

While the major banks passed on the full RBA cash rate increase to customers, many non-major lenders chose not to pass it on, to stay competitive and win market share.

“The non-major banks have been successful in winning more re-finances than they have lost in all states so far in 2022,” he says.

PEXA’s latest Refinance Index shows that refinancing has increased in 2022 by 21.5%.

“Property owners are beginning to feel the crunch of higher cost of living due to inflation combined with rising interest rates,” says Gill. “This has motivated many to review their home loan and look for a better deal.”

Red Tape Causing Housing Shortage

The building industry is warning of a looming housing shortage as state and local government planning bottlenecks choke the supply of new homes.

Analysis by the National Housing Finance and Investment Corporation warns that as soon as international migration returns to pre-pandemic levels, there will be an even bigger shortage of properties.

It says the number of households exceeding new supply will rise to about 163,400 homes in the next decade.

Mirvac’s Susan Lloyd-Hurwitz suggests a federal productivity payment could encourage the states to boost housing supply.

Tony Lombardo of Lendlease has seen in Singapore how a carefully managed approach to housing and planning can deliver in months what it takes years to approve in Australia.

“We should have bipartisan support to a 25-year vision that actually says, ‘this is where our corridors are going to grow’,” he says. “Let’s get those mapped out quite precisely, that both sides of politics support, and then facilitate how that gets approved.”


Interest rate rises may be front and centre for most borrowers at the moment, but the RBA says most households are well placed to absorb increases despite higher costs of living.

RBA governor Phillip Lowe says the June increase of 50 basis points to 0.85% will help bring down inflation over time.

He says RBA data shows households are generally well ahead on mortgage repayments, with financial stress “low and declining”.

According to the RBA many households increased their savings during the pandemic while interest rates were low.

Homeowners with variable-rate loans already have a median 21-month buffer on their repayments, compared with 10 months’ worth at the start of the pandemic.

RBA analysis indicates that even if variable rates were to lift by 200 basis points, more than 40% of borrowers are already making monthly repayments that are large enough to cover those increases.

It says many households have ample time to adjust to future hikes.

Rises Won’t Add To Cost-of-living

It’s no surprise the RBA uses interest rates to control domestic inflationary pressures. The kicker is this rate rise comes as inflation hits a 20-year high, driven by increased living costs.

Petrol is probably the most obvious pain point for most Australians at the moment, along with increased food costs, but gas and electricity supply issues are going to hit the hip pocket hard, especially as we enter the colder months.

According to the Australian Bureau of Statistics, non-discretionary annual inflation increased to 6.6 per cent in the March quarter.

This is more than double the rate of discretionary inflation (2.7%). Taking into account we’re also coming off the lowest interest rates of all time, some borrowers are looking at double the interest charged each month in addition to inflation – and it could be crippling.”


Borrowers Can Handle Higher Rates

Westpac agrees with the RBA that the vast majority of its customers can cope financially with the interest rate rises.

Chief executive of consumer and business banking, Chris de Bruin, says the chances of widespread mortgage stress this year are low.

He says customers and businesses were well prepared for rates to lift above what are abnormally low levels.

“Even (the official rate) at 1.5% we are still talking about very, very low-interest rates,” de Bruin says.

“I think the important thing to recognise is that we’ve been through a long period of ultra-low interest rates, so this is a natural reversion to some degree.”

He thinks future increases will be steady and affordable to most Australians, although he admits there may be a hardship for some borrowers “at the margin”.

Household spending is strong, businesses are generally confident and both consumers and businesses can handle higher rates as it was never going to remain so low forever.

With Australia’s big four banks expecting interest rates to reach 1.75 per cent by the end of the year, it’s no surprise one in three Australians are losing sleep over interest rate rises.

For those experiencing interest rate rises for the first time, it can be really scary. Especially with the rising cost of living and no promise of rate stability.”

Based on current predictions, by 2023 the cost of the average Australian mortgage could increase from the current additional $133 to over $500 a month.

Those who may be hit hardest by increasing interest rates don’t even own property, according to Domain chief of research Nicola Powell.

Powell says renters are the ones who may really start to feel the strain.

She says there is already a dire shortage of accommodation, with vacancies at rock-bottom levels, and if investors try to pass on all or some of the increased cost of their mortgages it is the renters who will struggle.

AMP Capital chief economist Shane Oliver says, with market conditions so tight and vacancy rates so low, tenants may not have too many other alternative properties to move to if their rent does increase.

“Or if they’d been saving up for a deposit, then it’s now going to be harder for them to buy,” he says.

RateCity research director Sally Tindall says tenants in areas where there are already shortages of rental accommodation may find themselves “throwing more money at rents” to keep their homes.

Renters Hit Harder Than Owners

While there’s been continued uncertainty over the last two years, changing conditions aren’t always a bad thing… and can even be a good thing. 

“Property prices are usually one of the first things to fall when interest rates go up,” he/she continues. “So, for those in a position to buy, it’s possible to secure a property at a good price. And in every challenge, there’s always a lesson.

“What we can learn from the current financial landscape, and something we always advise our clients is to maintain a substantial buffer.”

While you can hope for the best, in property and finance, you always have to be prepared for the worst.

“Clients who take advantage of our full suite of services, from accounting to superannuation, are usually the ones who achieve their goals with minimal setbacks,” he/she continues. “It’s a holistic approach that yields exceptional results, despite what the market is doing.


“Property owners are beginning to feel the crunch of the higher cost of living due to inflation combined with rising interest rates. This has motivated many to review their home loan and look for a better deal.”

Want more?

Thinking of buying an investment property? Book a free consultation with a Reventon property advisor today!

Talk to the Reventon team and we’ll give you all the guidance you need to be a successful at investing your money.

Additional Resources​

Reventon Residential – For all property sales, property management and property rental related services, our well respected team can help you.

Reventon Investments – Residential Property Investment. We help everyday Australians build wealth safely through property investment. Book a free consulation today.

Reventon Finance – For all your mortgage and finance needs. Our multi-award-winning finance team can help you with home loans, investment loans, mortgage refinance and more. Have a chat to a finance specialist today.



Latest Posts

Free Resources

Social Media

Your Name *
Phone Number *
Email Address
Cover Letter
Maximum file size: 5 MB
Maximum file size: 5 MB



Book a free one-one-one consultation with our qualified, award-winning experts today!

Brick by Brick starts construction

Lead With Kindness #LWK23

$1 billion under management


Add Your Heading Text Here

Download our full guide

A valid Australian mobile phone number is required to access the password to open this PDF.

Format your mobile as follows: +61 412 456 789

The Legendary Luncheons

Record-Breaking 5th Year Vinnies CEO Sleepout

The Inaugural Lead With Kindness Event (#LWK)

To kick off our most special Vinnie’s campaign ever, we teamed up with the incredibly talented musicians Matt Charles and Andrew Loadsman to get into the studio and record our charity anthem ‘A Little Means a Lot’. Thanks so much to Mark D’Angelo and the Backlot Studios for bringing this poem to life. Still gives us chills everytime.

A Little Means A Lot

Brick By Brick

Reventon Snooker Academy

The New Reventon Office

Reventon Raises Over $100K For Vinnies CEO Sleepout

Chris Christofi once again spent a night sleeping on the streets for his 4th Vinnie’s CEO sleepout. After raising progressively more and more in previous years, Chris placed 4th amongst CEO’ss nationally after raising over $113,000, after Chris pledged to match ever donation dollar for dollar.

Despite being a virtual event this year owing to covid restrictions, Vinnie’s set a new donation record with $9.4 million raised nationally.

Chris pledged that the following year, he would be the first Vinnie’s CEO to raise over $250,000.

Vinnies’ CEO Sleepout

Chris takes part in his first Vinnies CEP Sleepout. He exceeds his $40,000 target by raising $40,185 placing him 12th out of 1,462 CEO’s nationwide and in the top $1% of fundraisers across Australia.

You can check out Chris’ first ever LinkedIn post talking about his experiences on that first sleepout by clicking here. 

Chris’ Second Vinnies CEO Sleepout

After raising over $40,000 the previous year, Chris and the Reventon team are determined to beat that, and this year manage to beat their target of $60,000, raising $60,564 for homeless Victorians, after Chris promised to match every dollar donation with 50c of his own money. This year Vinnies hit a new record of $7.87 million nationally.

Chris Christofi On His Third Vinnie's CEO Sleepout

After raising over $60,000 in 2019, this year Chris and Reventon manage to easily clear their target of $80,000 and raised $82,177 after Chris vowed to match ever dollar donated with 75c of his own money.

Matt Charles from We Gift Wrap worked with Chris to produce a song raising awareness of Chris campaign.

Reventon Accounting Launch

A range of financial, accounting and property services are brought under the Reventon banner   

  • Preparation of Financial Report and Tax Return 
  • Tax Planning  
  • Business Activity Statement, FBT Return, and Tax Instalment 
  • Business Restructuring and Setting Up a new Entity

Reventon accounting is proud to provide the following services:

  1. Preparation of Financial Report and Tax Return – As part of our annual tax-related compliance work, our team is proactively establishing the best tax minimisation models for you, and also, ensuring tax compliance on your account. 
  2. Tax Planning – Everyone need the ultimate planning and strategy in all parts of life, especially Tax. Our highly experience team will build a personalised  tax strategy and minimisation according to your situation and needs and ensure you a maximum advantages on any investment asset transactions. 
  3. Business Activity Statement, FBT Return, and Tax Installment –  Small business owners spend hours every week dealing with Tax Requirements (BAS, FBT, and Tax Installment) which is a valuable time that you could have spent growing the business and the profit. Let our expert team to take this hassle away from your shoulder so you can build a valuable business for your retirement. 
  4. Business Restructuring and Setting Up a new Entity – Entity structure is one of the five foundations of a business. Our knowledgeable team will ensure you to have a solid foundation so you can focus on building a business on top of it. Your investment is your business too, don’t overlook them. 
  5. Bookkeeping, Payroll, and other Business Compliance – Our team takes ownership on anything that we do. We ensure high quality work and compliance in any levels of Accounting and Tax Regulations – ASIC Corporate compliance, workcover insurance, business-required licensing and insurances, Single Touch Payroll and payroll-tax, Superannuation Tax and Regulations. 
10 tips for successful property investment PDF
How to Buy an investment property without a deposit
Property Investment in Bendigo
What's In Store For Residential Real Estate In 2022
Property Investment in South East Queensland
10 tips for successful property investment PDF
How to Buy an investment property without a deposit
Property Investment in Bendigo
Property Investment in South East Queensland
What's In Store For Residential Real Estate In 2022
Guide To Your First Investment Property

Online budget planner

Have trouble sticking to a budget?

With the budget planner, you can log your incoming and outgoing expenses to keep track of your finances and set saving goals.

Check out our other calculators too

Loan repayment calculator​

Want to work out your repayments on a home loan?

Enter the details of your loan and discover how much you’ll be paying each month.

Check out our other calculators too

Borrowing-power calculator

How much could you borrow on a home loan?

Enter your income details and spending habits to discover your borrowing-power on a future home loan.

Check out our other calculators too

Stamp duty calculator

Confused by stamp duty?

Enter the property’s value and state or territory to discover exactly which fees and charges you’ll be required to pay.

Check out our other calculators too

Income tax calculator

Want a breakdown of your income tax?

Drag the controller for your income and discover your take home pay and tax rates.

Content Unavailable

We’re making some changes to our website and the content you are looking for is currently unavailable. Please check back later or book a free consultation by clicking on the button below.