Home loan customers urged to ditch RBA rate cut holders
Mozo has urged big bank home loan customers to be prepared to ditch and switch if their bank holds out on any rate cut made today.
Mozo data shows that the average Big 4 Bank standard variable rate of 5.61% is now 0.52 basis points higher than the market average of 5.08%.
“Last month’s out of cycle rate hikes will already cost big bank home loan customers an extra $372 in interest repayments annually,” said Mozo director Kirsty Lamont.
She said any moves by the Big 4 to hold onto cuts today will be “deeply unpopular” given windfall profits announced by NAB and ANZ last week.
“Last month’s rate hikes sparked a 25% increase in refinancing activity on Mozo.com.au and we’d expect to see the big banks lose more customers if they hold out today.”
Experts told the Courier Mail recent rate hikes by the big banks, low inflation and struggling consumer confidence could be key drivers that push the RBA board to drop the cash rate to a record low of 1.75%.
“A cut is more likely than a hold and it’s the path of least regret for the RBA to deliver a bit more support to the economy,” said HSBC chief economist Paul Bloxham.
“Regardless of which way today’s Reserve Bank decision goes, Mozo is predicting a second wave of home loan rate changes as lenders take the opportunity to make their move,” Lamont said.
“Intense competition among online and non-bank lenders means we could see them pass on the full 25 basis point discount to really increase their market lead.”
Looking for a better deal on your home loan? Use Mozo’s comparison tool to search for the most competitive rates in the market now or head on over to our Refinance hub for tips and tools to help you switch providers.