Home Loan Rates Falling Under 3%

Hottest Home Loan Rates

While most banks are not passing the full 0.25% cut to their mortgage rates, Reduce Home Loans is among the non-bank lenders passing on the full cut to those looking to refinance for a better rate.

Reduce Home Loans announced that it will be passing the rate cut in full for those looking to refinance. The cheapest variable interest rate brought down to 2.89%; one of the hottest rates in the market.

At the same time, most of the big 4, and other non-majors have failed to pass the rate cut in full.  Those major and non-major banks that are passing on a cut are not applying the cuts until weeks after the RBA decision to lower the cash rate to 1%.

According to financial comparison site Mozo, banks will pocket $971,000 in interest a day by delaying their cuts to later dates for customers.

RateCity Research Director Sally Tindall reminds borrowers that the rate cuts themselves aren’t netting them the best potential in savings. 

“while an extra $100 a month as a result of the two rate cuts “might feel like a win for families, that doesn’t necessarily mean they’re on a good home loan wicket” – Sally Tindall, Research Director at RateCity

Shopping around for a better rate is the best way to go in this competitive market.