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Rates remain on hold for the 33rd month, but here’s how to get a rate cut

Rates remain on hold for the 33rd month, but here’s how to get a rate cut

The RBA has  resisted calls to cut the official cash rate, but will be looking closely at this month’s employment data, whether wages growth remains flat and potentially the next round of inflation figures, before they pull the trigger.

Sally Tindall, research director at RateCity.com.au, said borrowers might have to wait until August before getting a rate cut.

“Australia didn’t get a rate cut, but it’s still not off the cards. Based on [the] statement from Phillip Lowe, it’s likely they’ll hold off until they see more consistent trends in employment and inflation,” she said.  

“But consumers don’t have to wait for the RBA to save money on their home loan.

“The downturn in the market is putting pressure on banks’ bottom lines. What they need is more business on their books.

“The best way for borrowers to get a rate cut is to turn themselves from an existing customer into a new one,” she said.

How to get yourself a rate cut

“Go online, find out what your bank is offering new customers, but also see what others are offering, because ultimately the lower the rate, the more money you’ll have left in your pocket,” said Tindall.

“Call your bank and ask them to match the rate offered to new customers, and if they aren’t prepared to budge you are well within your right to take your business to another lender; that’s the beauty of a variable home loan rate.”

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This article was reviewed by Research Director Sally Tindall before it was published as part of RateCity's Fact Check process.



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