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 - rates updated daily

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    Mozo Experts Choice 2021
    Smart Booster Home Loan

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    Initial monthly repayment
    1.85% p.a.variable for 24 months and then 2.25% p.a. variable
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    Mozo Experts Choice 2021
    UHomeLoan - Discount Offer

    Owner Occupier, Principal & Interest

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    Initial monthly repayment
    2.19% p.a. variable
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    Mozo Experts Choice 2021
    Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    interest rate
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    Initial monthly repayment
    1.99% p.a. variable
    1.99% p.a.

    Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required. Winner of three Mozo Expert's Choice Awards for 2021.

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    Variable Home Loan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a. variable
    1.99% p.a.

    Refinance only. Super-fast digital application process. Zero upfront fees. No on-going service fees. Free 100% offset sub account. Minimum 25% deposit required.

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  • placeholder
    Basic Home Loan

    Owner Occupier, LVR<60%, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    2.14% p.a. variable
    2.14% p.a.

    Competitive low variable rate. No application or account management fees. Flexibility to split your loan and set different repayment types. Fee free withdrawals of your savings.

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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, loan amount and term entered. 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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