40% of variable home loans yet to pass on February rate cut: Finder

While the majority of variable home loans available have dropped their interest rates following February's rate cut, 40% of variable loan rates stay on hold, according to comparison website Finder.

Of the 1,358 variable loans monitored by Finder, 815, or 60%, have had their interest rates cut since the Reserve Bank dropped the official cash rate on 3 February by 25 basis points. The cash rate now sits at a record low of 2.25%.

Some lenders are still continuing to pass along the Reserve Bank's cut, with Finder noting that interest rates were cut on 20 variable rate loan products in the past week.

Lenders who dropped variable rates in the last week include Commonwealth Bank, RAMS, Western Credit Union and Catalyst mutual, according to Finder.

Finder's Michelle Hutchison says borrowers should be proactive about keeping track of their home loans.

"While it's not surprising to see some lenders being slow to pass on the cash rate cut to their variable home loan customers, it's disappointing that some are taking advantage of the situation," she says.

"Many borrowers aren't aware of what interest rate they are being charged and may not realise that their lender hasn't passed on the rate cut."

She urges borrowers to compare available rates on the market and to consider asking their lender for a discount if they have failed to pass along the Reserve Bank's rate cut.