It seems everyone was caught by surprise when this week's annual inflation figure jumped to 4%, well beyond market expectations.

Some commentators say there's now a one in three chance the Reserve Bank of Australia will raise the cash rate at its next meeting in August.

Other pundits are blaming the cash splashing in the federal and state Budgets, saying they've added fuel to persistent inflation that's climbed in its last three monthly readings.

After the data was released, NAB was quick to revise its forecast for a rate cut to May 2025 - that's six months later than its previous forecast of November.

Those at CBA and Westpac have so far stuck to the November rate cut call, while ANZ economists recently moved their forecast to February 2025.

No doubt lenders are busy doing their sums factoring in the latest CPI data, but Bendigo Bank has made the call to slash its investor variable rates regardless.

Bendigo drops investor loans up to 45 basis points

Bendigo Bank's new rates for its Complete Investment variable home loans puts its lower loan-to-value (LVR) rates among some of the lower variable rates on the investor market.

Product Change (%) New rate Comparison rate

Investment Complete Home Loan Variable P&I <80%

-0.2 6.34% p.a. 6.56% p.a.
Investment Complete Home Loan Variable P&I <90% -0.35 6.54% p.a. 6.76% p.a.
Investment Complete Home Loan Variable IO <60% -0.2 6.59% p.a. 6.60% p.a.
Investment Complete Home Loan Variable IO <80% -0.45 6.64% p.a. 6.68% p.a.

Bendigo's Complete Home Loan comes with a 100% offset and offers principal and interest (P&I) and interest only (IO) repayment options.

Investors are diving in

The latest ABS lending data shows investors are busy in the market, with the value of new investor home loans growing 36% in the year to April.

It's double the growth in the value of new owner-occupier housing finance over the same period.

Market analysts believe investors will continue to be active in the residential market while demand continues to outstrip supply, driving property values higher.

Other moves

  • Bank First cuts some variable rates by 5 basis points


Buying an investment property or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for investors.

Image by Airfocus on Unsplash

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