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Surge in mortgage searches as lenders cut rates
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Surge in mortgage searches as lenders cut rates

Surge in mortgage searches as lenders cut rates

by Sasha Karen | June 06, 2019 | 1 minute read

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.

RBA
June 06, 2019

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.

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“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
standard
variable
rate

New
lowest
variable
rate

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
Union

 

3.59%

18 basis points

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