RBA holds but home-owners can triple savings by refinancing: RateCity

The Reserve Bank has left the cash rate on hold today at 0.25 per cent but has left the door open to a future cut.

While home-owners won’t be getting an RBA cut from their bank this month, they can still save thousands by refinancing.

New figures released by the RBA today show the average existing mortgage holder had a home loan rate of 3.19 per cent in August, yet new owner-occupier customers were offered, on average, a rate of just 2.69 per cent.

RateCity.com.au database

• Lowest variable rate is 1.89%
• Lowest big four bank variable rate is 2.19% (Westpac, intro rate for 2 years, reverts to 2.69%)
• 87 lenders have at least one fixed or variable rate below 2.50%
• 12 lenders have at least one fixed or variable rate below 2%

RateCity.com.au analysis shows the average owner-occupier would pay $33 less a month with a 0.15 per cent rate cut, but if they refinanced to the RBA average new customer rate their monthly repayments could drop three times as much.

RateCity.com.au research director, Sally Tindall, said mortgage holders don’t need to wait around for the RBA to save money.

“While home-owners didn’t get any reprieve from the RBA this month, they can still make significant savings by shopping around."

“If you’re fortunate enough to still have your regular income and a decent amount of equity in your home, you’re in prime position to capitalise on the refinancing boom."

“According to RBA data, the average existing home loan customer is on a rate that’s half a percent higher than a new customer."