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%.
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.