A home loan comparison website urges borrowers to keep their eyes on their mortgage rates as the February cash rate cut is “still trickling through to the home loan market”.
Finder.com.au reminded homebuyers that Tuesday marks six weeks since the Reserve Bank of Australia announced the historic cash rate cut of 2.25%. The website said many lenders, particularly variable rate home loans, are still yet to pass on the cuts to their customers.
"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,” said Michelle Hutchison, Money Expert at finder.com.au.
Forty-per cent of the over 1,300 variable rate home loans are yet to pass on the rate cut, the website claimed. Only 815 are currently offering lowered rates.
The following lenders, according to Finder.com.au, dropped their variable rates just last week:
2.Big Sky Building Society
4.Family First Credit Union
6.Hunter United Credit Union
7.Illawarra Credit Union
9.Western Credit Union
“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,” Hutchison said.
“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.”
It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan