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Media Release

Has your lender passed on the rate cut?

  • Lenders still dropping rates almost 6 weeks after cash rate cut: 20 variable home loans in past week
  • Just 60% of variable rate home loans have passed on cash rate cut
  • Why now is so important to compare home loans side by side

March 16, 2015, Sydney, Australia– Borrowers are being warned to check their home loan interest rates, as the February cash rate cut is still trickling through to the home loan market, according to one of Australia's biggest comparison websites finder.com.au.

March 17, 2015 marks six weeks since the Reserve Bank cut the cash rate to a record low 2.25 percent. 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.

Out of more than 1,300 variable rate home loans monitored by finder.com.au, 815 (60 percent) have so far passed on the cash rate cut, while 547 are yet to pass it on.

Michelle Hutchison, Money Expert at finder.com.au, said 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 are 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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Disclaimer

The information in this release is accurate as of the date published, but rates, fees and other product features may have changed. Please see updated product information on finder.com.au's review pages for the current correct values.

About us

More than 3 million Australians turn to finder.com.au every month to save money, time and make important life choices. We compare virtually everything from credit cards, phone plans, health insurance, travel deals and much more.

Our free service is 100% independently-owned by two Australians: Fred Schebesta and Frank Restuccia. Since launching in 2006, we’ve helped our users make more than 17 million decisions.

We continue to expand and launch around the globe, and now operate in the United States and United Kingdom. For further information visit www.finder.com.au.

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