Mozo has suggested borrowers can give themselves a rate cut by refinancing to a better deal.
Mozo's database shows that the average rate is currently 4.73 percent, whereas the lowest rate in our database is just 3.86 percent.
Rebeccah Elley, Mozo’s money editor took a look to see just how much a homeowner with a $600,000 mortgage would save by giving themselves a rate cut:
| Average mortgage rate – 4.73% | Average mortgage rate after 25 basis point rate cut – 4.48% | Lowest rate in our database – 3.86% | |
| Monthly repayments | $3,414 | $3,328 | $3,121 |
| Interest paid over 25 years | $424,142 | $398,456 | $336,247 |
"Even if your provider gives you a rate cut, the savings made on an average home loan won’t be anywhere near what you could get by switching to one of the best deals in the market."
If you would like to see how much you could save by refinancing, punch in your details into the Switch & Save Calculator, which will pull some of the cheapest mortgage deals available for your situation.