A leading financial comparison site is urguing borrowers to beware "desperate banks" that will employ tactics to encourage spending, not saving.
Spokesperson Michelle Hutchison said the past two rate cuts were "a blow to lenders, which are already experiencing a tougher home loan market."
"Some lenders are getting desperate and we've noticed new tactics they are using which are encouraging borrowers to spend their money rather than save on their home loan."
"For instance, some borrowers with savings sitting in their home loan are being told they can absorb their savings by paying smaller than the minimum home loan repayments," she said.
She said yesterday's decision to keep the rate unchanged wouldn't deter banks from finding ways to recoup losses from previous cuts.
RBA keeps rates on hold again