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ISCOVER
Staff Reporter
More than 2.5 million Australians are paying less on their mortgage than this time last month, new research has revealed.
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According to the latest report from RateCity, 100 per cent of lenders cut their standard variable rates following the Reserve Bank of Australia's decision to cut the official cash rate by 25 basis points.
For an average-sized mortgage of $300,000, a 25 basis point reduction represents a saving of approximately $50 per month (based on the benchmark standard variable rate, which has dropped to 7.56 per cent).
RateCity's chief executive officer Damian Smith said the universal movement in rates was a welcome outcome, and pointed to how competitive the home lending marketing is at present.
"The combination of a very slow lending market, along with changes in exit fee arrangements that make it easier to switch out of variable rate loans, has forced lenders to move rates down quickly. That's good news for the millions of Aussies with variable rate mortgages, as well as for new home buyers," he said.
