Surge in mortgage searches as lenders cut rates
One online comparison website has noticed a significant rise in traffic regarding home loans and refinancing following the RBA’s decision to cut the interest rate on Tuesday.
According to comparison website Finder, traffic to its home loan section saw an increase of 654 per cent in traffic over two days, variable rate related information rose by 564 per cent, and refinancing saw a rise of 369 per cent after the Reserve Bank cut the official interest rate to 1.25 per cent.
As of publishing, 21 lenders have cut their rates after the decision, and there is a possibility that lenders could cut their rates further throughout the rest of the month.
Lenders also tried to anticipate the rate cut, with Finder data showing 49 lenders cutting rates on 778 different products during May.
According to Graham Cooke, insights manager at Finder, this boost in traffic shows that Australians are becoming more financially literate.
“It’s great to see Aussies being proactive and looking for better value,” Mr Cooke said.
“This historically low rate will open lots of eyes to just how good the current offers are – and that’s the case for variable and fixed rates, alike.
“Generally speaking, for those with an average home loan size of just less than $400,000, a 25 basis point drop could save you $60 a month or more. That’s more than $21,000 over thirty years.”
For those looking to refinance, Mr Cooke said now is a good time to do so, especially if an investor is sitting on a high rate.
“We know the RBA cut the rate in part to help stabilise falling property prices, but many experts are predicting another cut this year, if not two,” he said.
“Rates have never been this low. If your current home loan has a ‘4’ or a ‘5’ in front of it, you could be getting a much better deal.”
The lenders who have announced a cut to their rates following the RBA’s decision, according to Finder, are:
|
Bank |
New |
New
Loading form...
|
Cut |
|
CBA |
5.12% |
3.54% |
25 basis points |
|
NAB |
5.11% |
3.54% |
25 basis points |
|
Newcastle Permanent |
5.10% |
3.47% |
25 basis points |
|
Bank of Queensland |
3.44% |
25 basis points |
|
|
Greater Bank |
3.57% |
25 basis points |
|
|
Macquarie Bank |
3.34% |
25 basis points |
|
|
RACQ |
3.44% |
25 basis points |
|
|
ING |
3.34% |
25 basis points |
|
|
Athena Home Loans |
3.34% |
25 basis points |
|
|
Homestar |
3.24% |
25 basis points |
|
|
Reduce Home Loans |
3.19% |
25 basis points |
|
|
Virgin Money |
4.84% |
3.47% |
22 basis points |
|
Westpac |
5.18% |
3.78% |
20 basis points |
|
St.George |
5.16% |
3.63% |
20 basis points |
|
BankSA |
5.15% |
3.59% |
20 basis points |
|
Bank of Melbourne |
5.14% |
3.59% |
20 basis points |
|
Suncorp |
4.52% |
3.59% |
20 basis points |
|
RAMS |
5.21% |
3.21% |
20 basis points |
|
Credit Union SA |
3.59% |
20 basis points |
|
|
ANZ |
5.18% |
3.63% |
18 basis points |
|
Community First Credit |
3.59% |
18 basis points
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