Aussie borrowers dump big banks after RBA cut

By Mozo Editorial · · 1 min read
Fact Checked
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Borrowers are flocking to comparison sites to hunt out bargain home loan deals in the wake of the Reserve Bank's latest rate cut, putting the big banks under pressure to keep their mortgage customers.

Interest in cheaper home loans is soaring as smaller lenders cut rates to jaw dropping new lows. The lowest variable home loan rates on the market now start below 2.00% - a far cry from the average big bank variable rate of 3.34%.

It's little surprise that the variable rates gap between the big banks and smaller lenders is widening, given the Big 4's refusal to pass the November RBA rate cut through to variable home loan customers.

Mozo Director Kirsty Lamont said, “Savvy borrowers could save tens of thousands on their home loan by taking the opportunity to shop around and switch. Given the savings on offer, it's hardly surprising we're seeing a shift to smaller lenders, who have been rolling out the red carpet with unbelievably competitive rates.”

TOP HOME LOANS DECEMBER 2020 - last updated 9 December 2023

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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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