The winners and losers of the RBA rate cut, who are you?
Within 24 hours of the RBA’s decision to cut rates, lenders have already started announcing whether they will pass the cut on to their customers.
The decision to cut the official cash rate this time around will also represent winners and losers across the country, according to a new study by Mozo.
Mozo found that home loan holders with stable incomes will be the biggest winners after the RBA rate cut, as they are in first place for refinance your mortgage at some of the best rates on the market.
“Another drop in official interest rates will be great news for many home loan clients, with historically low interest rates providing significant opportunities to switch lenders and reduce their monthly payments,” Kirsty said. Lamont, director of Mozo.
Mozo calculated that the average variable mortgage rate now stands at 3.19%, down 3.34% from last month. This means that a loan of $ 400,000 for a homeowner making principal and interest payments could result in a monthly savings of $ 33 on their mortgage.
Consult the database, Home loans good currently offers the first variable mortgage rate at a very low rate of 2.17% (comparison rate of 2.20% *), followed by Reduce home loans at 2.19% (comparison rate of 2.23% *) and TIC Knock offers 2.19% (comparison rate of 2.20% *).
“Perhaps the biggest challenge for people with mortgages looking to save will be getting to know the names of small lenders who continue to offer the most competitive interest rates,” Lamont said.
On the flip side, avid savers will be hit again, with 76 of deposit takers cutting rates this year and dropping the highest 6-month term deposit to 1.20% from Judo bank, 54 basis points above the average rate of 0.66%.
Best 6 month term deposit rates
|Provider||6 month term deposit||Balance after 6 months|
|Judo bank||1.20%||$ 10,060|
|Vic Bank||1.15%||$ 10,058|
|Mutual Bank of Firefighters||1%||$ 10,050|
|Bank of health professionals||1%||$ 10,050|
|Mutual Bank for Teachers||1%||$ 10,050|
Source: Mozo.com.at October 28, 2020 at $ 25,000
When it comes to on-call savings accounts, Mozo found that the current average savings rate currently sits at a paltry 0.57%. However, ING and My state bank the two share the main savings rate of 1.50%, while Westpac still offers a rate of 3% to customers under 30.
Top 5 Interest Rates for Current Savings Accounts
|Provider||Product||Best current rates||Over $ 10,000 after 12 months|
|ING||Savings maximizer||1.50% (0.10% base rate)||$ 10,150|
|MyState Bank||Bonus saver||1.50% (0.15% base rate)||$ 10,150|
|Australian unit||Active saver||1.25% (base rate 0.25%)||$ 10,150|
|MOVE Bank||Bonus saver||1.20% (0.25% base rate)||$ 10,121|
|Up||Saver account||1.10% (base rate 0.10%)||$ 10,111|
Source: mozo.com. as of November 3, 2020, conditional bonus rates at $ 10,000
Ready to upgrade to a better home loan deal? So make your next stop at our home loan refinance comparison tool.
^ See information on the Mozo Experts Choice Home Loan Awards
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