The Reserve Bank of Australia slashed rates to a record low of 1.25 per cent on Tuesday, with the big four banks choosing to pass the cut on, but only two of them in full.
Westpac and ANZ only chose to pass on a cut of 0.20 and 0.18 per cent respectively, bringing their owner occupier principal and interest variable home loan rates down to 5.18 per cent.
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This compares to Commonwealth Bank and NAB’s rates for the same loan after a 0.25 per cent cut, which now sit at 5.12 and 5.11 per cent respectively.
But all of the banks scored a whopping $108.8 million by delaying the dates when their interest rate cuts go into effect.
Alas, lower rates are still great for borrowers on variable home loans, and in the days following the RBA’s cut, interest in low-rate mortgages skyrocketed, according to Finder.
Finder recorded traffic to its home loan deals jumped a whopping 654 per cent in less than 48 hours after the RBA announced the cash rate.
On top of that, interest in variable rates on Finder grew by a huge 564 per cent, and there was a 369 per cent spike in those looking refinance.
Insights manager at Finder, Graham Cooke, said the uptick showed Aussies were becoming increasingly savvy with their finances, and the low rate will open lots of eyes to just how good the current offers are for both fixed and variable rates.
The new rates would mean those with an average home loan size of just under $400,000 would be saving around $60 a month, which is more than $21,000 over a thirty year loan.
“With so much activity on the home loan front, the ball is well and truly in the borrower’s court,” Cooke said.
“Rates have never been this low. If your current home loan has a ‘4’ or a ‘5’ in front of it, you could be getting a much better deal.”
Have a look at which banks have passed on a rate cut
The new home loan rates of the banks which passed on a rate cut following the RBA’s cash rate decision on Tuesday. Source: Finder
