Variable borrowers are being urged to make 2013 the year to save more on their home loans, following announcements that at least three lenders have cut variable interest rates out-of-cycle – but one of those lenders warns, ‘not so fast’.
Michelle Hutchison, spokesperson for financial comparison site RateCity, says it's the first time the site has recorded three lenders cut variable home loan rates out-of-cycle.
"While there have been several rate increases out-of-cycle, we've never seen lenders drop variable home loan rates while the cash rate remains stable. Lenders have room to move after keeping an average 0.42 percentage points of the RBA’s 1.75 percentage point cut to the cash rate since November 2011, from variable home loan borrowers. If these three lenders can afford to cut variable rates out-of-cycle, other lenders – including the major banks – have no excuse to sit on their hands.”