November update: RBA keeps cash rate on hold at 3.25 percent
The Reserve Bank of Australia (RBA) has left interest rates on hold, making it the first Melbourne Cup day in six years that rates remain unchanged.
The cash rate was held steady at 3.25 percent today, after the RBA reduced the cash rate by a total of 100 basis points in May, June and October.
Despite no movement today, variable borrowers are hundreds of dollars better off compared to earlier this year, given the rate cuts so far in 2012.
RateCity found that for a typical $300,000 home loan variable borrowers will save almost $700 in repayments by the end of the year. That’s because variable borrowers have seen their interest rates fall by 67 basis points on average this year – which equates to savings of about $1300 for a $600,000 variable rate mortgage.
RateCity also calculated that the major four banks’ variable home loan customers will save a combined $1.19 billion this year from lower interest rates.
Savers, on the other hand, have seen a 57 basis point reduction to the average savings account rate this year, which would make a significant difference to those who rely on their returns.
Switch and save thousands
While most borrowers have enjoyed the rate reprieve from cash rate cuts so far this year, many stand to save even more money by comparing home loans and switching to a cheaper deal.
For instance, if a borrower with a $300,000 mortgage switched to the cheapest rate on RateCity at the start of the year, they could have saved an extra $1000 in repayments on top of the rate cut savings of nearly $700.
There is a lot of money to be saved by using RateCity and comparing your home loan to what’s on the market and negotiating with your lender or switching to a better deal – so jump online to RateCity.com.au and see how much you could potentially save!