Lenders cut fixed mortgage rates as RBA decision looms

Variable mortgage rates remain unchanged

Fixed mortgage rates have been cut by a number of lenders in the lead-up to the Reserve Bank of Australia's (RBA) interest rate decision on Tuesday.

The cuts come as the RBA is widely expected to raise the official cash rate for the second time in as many months, in a bid to curb rising inflation.

The move by lenders to cut fixed mortgage rates is likely to be welcomed by borrowers who are looking for certainty in their repayments.

However, it is important to note that fixed mortgage rates are typically higher than variable mortgage rates.

As such, borrowers who are considering switching to a fixed mortgage rate should carefully weigh up the pros and cons before making a decision.

The RBA's decision on Tuesday will be closely watched by borrowers and lenders alike.

If the RBA raises the official cash rate, it is likely that variable mortgage rates will also increase.

This could put further pressure on household budgets, particularly for those who are already struggling with the rising cost of living.