The Reserve Bank of Australia (RBA) has cut interest rates to a record low. But despite some lenders offering loans from as low as 1.89 per cent, many of the bigger banks aren’t passing on savings to their customers.
If your lender hasn’t reduced the variable interest rate on your home loan, it could be costing you hundreds of dollars in repayments. It’s why many Aussies are flocking to refinancing their home loan.
So, why are interest rates dropping? Quite simply, the impact of the pandemic has prompted the RBA to slash interest rates to a record low of 0.1 per cent.
This means Australian homeowners should be getting a good dose of mortgage relief at a time when they most need it.
But that’s not happening for all mortgage holders. Recent analysis shows only five of the 41 lenders who have announced rate cuts have actually passed those savings on to their existing customers.
That’s simply not good enough and RBA governor Philip Lowe has called on Australian mortgage holders to take action.
“I encourage everybody to go to their bank and ask for a better deal,” he said.
“If they don’t give it to you, switch to a bank that will.”
How to quickly find a better home loan rate
Rate Comparison is well positioned to help Aussie homeowners seriously cut the cost of their mortgages. In a matter of minutes, we’ll compare interest rates across 37 lenders and see if you could be saving hundreds of dollars in repayments.
What’s more, some of our lenders are offering interest rates as low as 1.89 per cent. We compare both familiar brands and boutique lenders.
When even the RBA urges Australians to shop around, it’s clear homeowners should take action today. Click below to see how much you could save by refinancing.
Don’t let the big banks take you for a ride. See how much you can save today.
Disclaimer: This article is opinion only and should not be taken as financial advice. Check with a financial professional before making any decisions.