Following today’s decision by the RBA to leave the cash rate on hold at 0.1 per cent, new research from RateCity.com.au shows almost half of all borrowers are in the dark about their rate.
A RateCity.com.au survey of Australian homeowners found 46 per cent of people with a mortgage do not know their rate.
The RBA has made it clear that rates are not moving up for the next three years. But new home loan rates are still dropping.
Home loan rate cuts in the past month on RateCity
- 87 banks have cut at least one home loan rate, including
- 39 variable home loans, and
- 78 fixed home loans.
However, the rate changes are only for new customers or people willing to fix.
The latest RBA figures show the average home loan rate for existing variable borrowers is 3.16 per cent, while the average new customer rate is 2.67 per cent.
Sally Tindall, research director at RateCity.com.au, said: “The average borrower is paying about half a per cent more than they should be.”
“If you don’t know your rate, then you won’t know whether you’re getting ripped off. Check your rate, but also check what your bank is offering new customers and ask them to match it.
“If you’re on a variable rate, it’s your right to haggle,” she said
Tips for haggling with your bank to get a better deal
- Don’t put up with overpaying, call your bank and negotiate a better rate.
- Before you call, check what your bank is offering new customers for the same home loan, but also find out what other lenders are likely to offer you.
- If they refuse to budge and offer you a better rate, you can always take your business elsewhere, especially if you are on a variable rate.
Lowest owner-occupier rates on RateCity.com.au
|Variable||Reduce Home Loans|
|1-year fixed||Tic Toc, Greater Bank, Hume Bank, RACQ, QBank|
|3-year fixed||RACQ, QBank|
|4-year fixed||Westpac, St George, Bank of Melbourne|
|5-year fixed||Newcastle Permanent, Aussie|
Home loans above are available Australia-wide. LVR restrictions may apply.
Big four banks – lowest owner-occupier rates
|1 year fixed|
|2 year fixed|
|3 year fixed|
|4 year fixed|
|5 year fixed|
|Lowest variable rate|
Note: Westpac's rates are for a loan to value ratio of 70%.