If anything, banks have been slow to cut five-year rates, given margins have been moving their way since last year.Rates of 4.99 per cent won't be as low as banks can go, if a lender can live on a spread of less than 100 basis points (based on retail term rates).So some pretty low pricing, redolent of the 1990s recovery play, might be in the offing.One surprising line of analysis in the Australian Financial Review last week was that two sources of expense growth - from higher capital charges and risk weights - would slash into industry profits.This overlooks a history of pricing and product measures from banks aiming to lift home loan product profits. Maybe a capital charge will be clearly labelled and priced.Banks can be expected above all to find pricing combinations on lending that meet testing return targets.