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ISCOVER
Steven Cross
Australia’s majors have kept more than 50 per cent of all the Reserve Bank’s rate cuts, according to new research.
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Data from RateCity found the majors have withheld, on average, 0.55 per cent of all rate cuts, and this could soar as high as 0.70 per cent within the year.
According to RateCity, the major lenders are effectively charging customers with a $300,000 mortgage an extra $3,314.
The average standard variable rate is currently 7.40 percent. But if the major banks followed the Reserve Bank and passed on all of the rate cuts in full, the benchmark standard variable rate would now be 6.86 percent.
Michelle Hutchison, spokesperson at RateCity, said the major banks aren’t setting a good example for lenders in Australia.
“Since September 2008, each of the major banks has kept 55 basis points on average from their variable rate customers, which is estimated to be about two million households,” she said.
“The major banks set the benchmark for interest rates in Australia so if they retain some of the rate cuts and increase their rates further than the Reserve Bank’s cash rate it’s likely that the rest of the home loan market will follow.”
