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.”

RELATED: Loyalty to Big 4 costs home loan customers $6 billion in savings each year

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.

Home loan comparisons on Mozo - last updated 16 April 2024

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  • Mozo Expert Choice Badge
    Express Home Loan

    Owner Occupier, Principal & Interest, LVR <90%

    interest rate
    comparison rate
    Initial monthly repayment
    6.01% p.a. variable
    6.14% p.a.

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    Fixed, Owner Occupier, Principal & Interest, LVR <60%

    interest rate
    comparison rate
    Initial monthly repayment
    5.99% p.a.
    fixed 3 years
    6.37% p.a.

    Competitive Fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.

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  • Discounted Home Value Loan

    Owner Occupier, Principal & Interest, LVR 70-80%

    interest rate
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    Initial monthly repayment
    6.09% p.a. variable
    6.09% p.a.

    Enjoy competitive rates for owner occupiers. Enjoy unlimited free extra repayments. Flexibility to redraw additional payments for free. No ongoing monthly service fee. Settlement fee waived on new borrowings from $50,000 (T&Cs apply).

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  • Neat Home Loan

    Owner Occupier, Principal & Interest, LVR <60%

    interest rate
    comparison rate
    Initial monthly repayment
    6.14% p.a. variable
    6.16% p.a.

    Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.

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* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

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