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“Competition to get new customers” has resulted in lenders making nearly 200 cuts to home loan rates in the past month, despite the RBA’s decision to leave the cash rate unchanged, new analysis has found.
Mortgage comparison site RateCity.com.au has revealed that interest levels on 106 variable rate home loans have been cut by an average of 0.17 per cent since 1 September. The analysis said fixed rates also dropped within the same period, with 74 rates reduced by an average of 0.23 per cent.
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RateCity.com.au data insights director Peter Arnold noted that a significant portion of rates on offer are now under the 4 per cent mark and further cuts are imminent.
“The cash rate is on hold, yet we are still getting home loan cuts as there is so much competition to get new customers and we don’t expect that to change in the near future,” Mr Arnold commented.
“There are now 834 home loans with rates under 4 per cent with ongoing variable rates as low as 3.35 per cent, and three-year fixed rates starting from 3.59 per cent,” he elaborated.
According to comparison site, while a typical RBA rate cut of 0.25 per cent can save customers $45 a month on a $300,000 home loan, switching from the average standard variable rate of 4.62 per cent to one of the lowest available could save them $220 per month.
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