Mortgage holders should take decisive action if their lender refuses to pass through the latest rate cut, according to Reserve Bank governor Philip Lowe.
It’s been a week since the RBA cut the cash rate to a new record low of 0.10%, but the response from Australia’s top bank lenders has been underwhelming to say the least.
ANZ, CommBank, NAB, Westpac, St George, Macquarie and others have all refused to pass through the cut to variable home loan customers, instead choosing to cut rates for a handful of fixed rate home loans.
“I encourage everybody to go to their bank and ask for a better deal," Dr Lowe said. "If they don't give it to you, switch to a bank that will."
Athena, Homestar, UBank, ME and Reduce Home Loans are just some of the smaller lenders who are showing the big banks how to put customers first by passing through the RBA cut to variable home loan borrowers.
Mozo’s analysis shows that the typical big 4 borrower with a $400,000 variable home loan could now save $3,600 a year by switching to the best rate on the market (Reduce Home Loans 2.05% comparison rate*).
If your lender is refusing to pass through the cut, now is the time to strike. Call your bank to demand a better deal: if they won’t budge, compare your interest rate against the new low rates on the market and see how much you could save by switching.