With many lenders yet to pass on the cash rate cut after almost 6 weeks, now is an important time to compare your home loan.
According to comparison website finder.com.au, just 60% of variable rate home loans have passed on cash rate cut.
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.
Tomorrow 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.
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.
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.”
SUBSCRIBE & DON'T MISS A SINGLE EPISODE OF MICHAEL YARDNEY'S PODCAST
Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.
NEED HELP LISTENING TO MICHAEL YARDNEY'S PODCAST FROM YOUR PHONE OR TABLET?
We have created easy to follow instructions for you whether you're on iPhone / iPad or an Android device.
PREFER TO SUBSCRIBE VIA EMAIL?
Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.