Media Release

Interest Rate Update: 30 Lenders announce rate cuts, 158 home loans under 4.6% from next month

  • 30 lenders have announced rate cuts this month
  • Aussie is the latest to announce rate cut
  • Time for borrowers to switch – over $32,000 up for grabs!

February 10, 2015, Sydney – "Over one-quarter (or 26 percent) of lenders have now made interest rate cut announcements including all four major banks, according to finder.com.au.

"However, just one of the 30 lenders has passed on the rate cuts to existing and new customers so far, which was BankVic with an effective date of February 9, 2015. Loans.com.au was first to drop its rate for existing customers with its rate-linked home loan while cuts for other borrowers will take effect on February 23, 2015.

"So most borrowers won't receive a rate reprieve until February 22 on average, which means it will be in next mont's statement.

"The latest to make a rate cut announcement was Aussie, which followed the pack and will drop its variable home loan rates by 0.25 percentage points, effective February 23, 2015.

"With all lenders so far passing on at least the full 0.25 percentage point rate cut, we estimate that by next month there will be 158 variable rate home loans under 4.60 percent, out of almost 1,400 home loans monitored by finder.com.au/home-loans.

"These lenders that will offer introductory or ongoing variable home loan rates under 4.6 percent include Commonwealth Loans.com.au, HSBC, UBank, Heritage Bank, Yellow Brick Road, CUA, BankVic, Bankwest, IMB, Aussie, Macquarie Bank, Bank of Sydney, AMP, Citibank, ING Direct and more.

"It's a great time for borrowers to find out what rate they will be on once the rate cuts come into effect and compare it to other home loans. Variable rate borrowers shouldn't accept an interest rate over 5 percent next month and should renegotiate with their lender or switch to a cheaper deal.

"For instance, if you have the average variable home loan rate of 5.5 percent and it falls to 5.10 percent, switching to 4.60 percent for a $300,000 home loan could save you $91 per month or over $32,000 over 30 years.

"This money is up for grabs and it's up to borrowers to jump online, use sites like finder.com.au, talk to their lender or switch home loans and take the cash on offer."

Click here to view a table of the lenders that have so far announced rate cuts and we will be updating this page as we hear more announcements:
www.finder.com.au/rba-cash-rate

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For further information

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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