Check your rate is competitive
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Check your rate is competitive
Posted on Monday, March 16 2015 at 4:43 PM
Investors and home owners are being urged to check their home loan interest rates, as the February cash rate cut is still trickling through to the home loan market, according to comparison website finder.com.au.
It’s six weeks since the Reserve Bank of
Australia (RBA) cut the cash rate to a record low 2.25 per cent. And while many
lenders announced rate cuts last month, some variable rate home loans are still
yet to pass on the cuts.
In fact, in the past week there were 20 variable rate home loans that dropped their rates
from 10 lenders including Commonwealth Bank, Big Sky Building Society, Catalyst
Mutual, Family First Credit Union, Heritage Bank, Hunter United Credit Union,
Illawarra Credit Union, RAMS and Western Credit Union, according to finder’s
home loan comparison database.
Of the more than 1300 variable rate home
loans monitored by finder.com.au, 815 (60 per cent) have so far passed on the
cash rate cut.
Money expert at Finder Michelle Hutchison
says some lenders could be taking advantage of borrowers by delaying their rate
reductions.
“While it’s not surprising to see
some lenders being slow to pass on the cash rate cut to their variable home
loan customers, it’s disappointing that some are taking advantage of the
situation.
“Many borrowers aren’t aware of what
interest rate they’re being charged and may not realise that their lender
hasn’t passed on the rate cut.
“It’s up to borrowers to keep their
lenders on their toes by keeping track of their home loan, finding out what
their rate is and whether their lender has passed on the latest rate cut.
“If they haven’t yet passed it on,
borrowers have a right to ask for a discount or compare home loans side by side
and switch to another lender.”
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