While speculation around future RBA cash rate decisions has only increased in fervour since the consecutive June and July cuts, an industry player has called for the attention caught up on the macro level to be dialled back in on borrowers.
“Forget about what the Reserve Bank is doing and focus on the interest rate [your customer] is paying,” said Canstar group executive of financial services, Steve Mickenbecker.
Mickenbecker noted that any rate above 3.47% is over the lowest quarter of loans and action should likely be taken to secure a better rate.
Financial comparison website Canstar is still seeing “stragglers” who are adjusting their rates following July’s 25 basis point cut.
Over the last week, Canstar reported that 24 lenders reduced their variable home loan rates across 138 loans by an average of 0.19% for owner occupiers paying P&I. Additionally, 17 lenders decreased 192 fixed rate loans.
“There is still plenty of opportunity for existing borrowers to get a better deal now by negotiating with their lender or moving to another,” said Mickenbecker.
“The real fun has been in fixed rate home loans.”
Three-year terms have fallen by an average of 0.27% in the last week, while five-year fixed rates are down 0.44%.
“There’s not been a five-year fixed rate on Canstar as low as today’s 3.19%,” said Mickenbecker.
“Whether you are a borrower or a saver, now is the time to compare rates as there will almost certainly be a better deal out there.
“Borrowers have an opportunity to future proof repayments for five years at a low rate and to not have to think too much about the Reserve Bank.”