Following the RBA’s cash rate cut, all eyes are on lenders to see if they intend to pass this cut on. A full list of lenders who have announced their lowering rates is below.
|AMP Bank||0.20%||20/05/2016||Effective 23 May for existing customers|
|Australian Military Bank||0.25%||27/06/2016|
|Auswide Bank||0.20%||25/05/2016||0.15% for investors|
|Bank of Melbourne||0.25%||23/05/2016|
|Bendigo Bank||0.20%||30/05/2016||0.15% for investors|
|Coastline Credit Union||0.25%||16/05/2016|
|CUA||0.25%||19/05/2016||0.20% for investors|
|First Option Credit Union||0.25%||9/05/2016||Effective 1 June for existing customers|
|G&C Mutual Bank||0.12%||6/05/2016||0.12% only applies to some products|
|Greater Bank||0.25%||9/05/2016||Effective 16 May for existing customers|
|Loans.com.au||0.25%||4/05/2016||Effective 23 May for existing customers|
|Mortgage House||0.25%||6/05/2016||Effective 27 May for existing customers|
|P&N Bank||0.14%||5/05/2016||On one product. No change for the others.|
|Pacific Mortgage Group||0.25%||16/05/2016|
|Queensland Police Credit Union||0.25%||23/05/2016|
|Reduce Home Loans||0.20%||5/05/2016|
|Summerland Credit Union||0.25%|
|Suncorp Bank||0.20%||25/05/2016||0.15% for investors|
|Teachers Mutual Bank||0.25%||12/05/2016||Effective 1 June for existing customers|
|Yellow Brick Road||0.25%||9/05/2016||Effective 25 May for existing customers|
|Your Credit Union||0.25%||1/06/2016|
The table above shows all lenders who have identifed a rate cut. Cuts listed are the max rate cut applied to variable rate products For a full rate table click here. Calculate your change in monthly repayments here.
So has your lender cut?
If not, there’s still time as lenders are expected to be passing on the cash rate cut for another couple of weeks. If you’re sick of waiting for your lender to take action though there’s never been a better time to take the lead.
With the cash rate at a new historic low, and lenders working even harder to compete for customer’s business, negotiating a better rate from your lender or taking your business elsewhere has never been easier.
If your lender hasn’t moved their rate, or you’re currently paying above 4 per cent, now is the time to use the market to your advantage. Contacting your lender and negotiating an interest rate cut should be your first step but if you’re not making any headway it could be time to switch lenders.
Time to refinance
If you’re considering refinancing to get a better home loan rate the first step is doing some sums to make sure it’s the best move for you. A home loan may have a better interest rate than the one that you’re currently on but if you’re near the end of your loan and you will have to pay application fees to start up a new loan it may not be worth the time and money.
If you do work out the costs and refinancing is the best way to go then the next step is starting to search the market. Using the RateCity comparison table is a great way to sort home loans by interest rate and comparison rate to get a good understanding of the loan’s competitiveness.
You can also use the search filters to find loans that are best suited to your needs by selecting the features you want, the purpose of your loan and the amount you need to borrow.