With home loan interest rates at record lows already, RBA officially cut the cash rate by 0.25% to just 1.25% p.a. – the lowest it has ever been.

While many lenders are passing on the full rate cut to their standard variable rate home loan customers, however, not all lenders are doing the same.

Is your lender passing on the full rate cut?

Among the big four banks, both NAB and CBA have announced that they’re passing on the full rate cut of 0.25% (25 basis points) to all variable rate home loans for both new and existing customers.

What this means is, a borrower with a mortgage balance of $500,000 on a standard variable rate of say 5.36% (principal and interest repayment) can save up to $77 per month or $27,851 over 30 years, when the full rate cut is passed on.

Surprisingly, ANZ is choosing not to pass on the full rate cut, reducing its variable home loan rates by only 0.18% and holding back 0.07% or almost 30% of the rate cut.

Westpac too is also only passing on 0.20% of the rate cut deciding to pocket 20% of the rate cut.

Which lenders passed on the full rate cut?

• AMP: 0.25% (25 basis points) effective 21 June 2019
• Bank Australia: 0.25% (25 basis points) effective 24 June 2019
• Bankwest: 0.25% (25 basis points) effective 25 June 2019
• BOQ: 0.25% (25 basis points) effective 25 June 2019
• IMB: 0.25% (25 basis points) effective 21 June 2019
• ING: 0.25% (25 basis points) effective 18 June 2019
• Macquarie Bank: 0.25% (25 basis points) effective 21 June 2019
• ME Bank: 0.25% (25 basis points) effective 27 June 2019
• Pepper Money: 0.25% (25 basis points) effective 24 June 2019
• UBank: 0.25% (25 basis points) effective 28 June 2019

Which lenders only passed on a partial rate cut?

• Bank of Melbourne: 0.20% (20 basis points) effective 18 June 2019
• Bank SA: 0.20% (20 basis points) effective 18 June 2019
• Bendigo: 0.20% (20 basis points) effective 28 June 2019
• Citibank: 0.20% (20 basis points) effective 14 June 2019
• Heritage Bank: 0.20% (20 basis points) effective 21 June 2019
• RAMS: 0.20% (20 basis points) effective 18 June 2019
• St George: 0.20% (20 basis points) effective 18 June 2019
• Sun Corp: 0.20% (20 basis points) effective 21 June 2019

Give us a call on 1300 889 743 or fill in our online assessment form if you would like your rate reviewed by one of our specialist mortgage brokers.

How do I take advantage of record low interest rates?

The variable mortgage is at the lowest rate it’s been since the 1960s, while the one-year fixed rates are pushing below 3 per cent, a near-record low.

If you’ve haven’t been monitoring your home loan interest rate in the last couple of years, you could be on a significantly higher interest rate.

And if you’re with a major lender, then you’re definitely overpaying as there’s a difference of 0.75% p.a. on average already between the variable rates offered by the big four and other smaller lenders.

The majors are often slow to pass on lower rates to their existing customers, while they often have special introductory offers to attract new customers with rates as low as 3.55%.

To work out if you can get a better rate:

• Find out your interest rate and then check your lender’s website to see if they are offering a lower interest rate to new customers.
• Find and compare the best rates available on the market. Often, there are better rates on offer by other lenders.
• You should call your lender or let your broker ask them to match the current best offer and if they can’t or won’t, it may be better off simply refinancing your home loan with a different lender.

Even though not all lenders are passing on the full RBA cut, some lenders are offering their lowest rates to the home buyers with big deposits or large equity held for existing owner-occupiers seeking to refinance.

You owe it to your self to shop around for a better home loan rate or better yet let your mortgage broker do the work for you.

Am I eligible for a refinance?

You should consider refinancing to take advantage of the current mortgage rates if:

• You owe less than 80% of the property value.
• Your home loan is variable i.e. not fixed.
• Your loan is over 24 months (2 years) old, otherwise, a short term loan fee may apply.

How to take advantage of refinancing rebates and cashback offers?

Did you know some lenders will actually give you cash backs of anywhere between $2,000 and $3500 to refinance your mortgage with them?

You can take advantage of these low mortgage rates and strong competition between the lenders to refinance at a competitive interest rate with a different lender.

The cashback is typically paid within a month of your loan being advanced, either to your nominated account or via a cheque.

These offers only last for a short time so please call us on 1300 889 743 to find out if you qualify.

Are further rate cuts coming?

Industry experts and analyst are expecting another cash rate cuts by the RBA (Reserve Bank of Australia) this year alone. With the RBA governor suggesting that the cash rate could go down to 1.00%.

Irrespective of further rate cuts or not, our specialist mortgage brokers know which banks have the most competitive variable interest rates on the market.

Please call us on 1300 889 743 or enquire online to find out if you qualify.