Mozo's five numbers you need to know after the Cup Day RBA decision

Mozo's five numbers you need to know after the Cup Day RBA decision
Mozo's five numbers you need to know after the Cup Day RBA decision

GUEST OBSERVER

The Reserve Bank has left the cash rate unchanged despite a weaker than expected underlying inflation result last week.

Financial comparison site Mozo.com.au shares the five need-to-know numbers after the RBA’s Melbourne Cup Day rate decision:

Mozo's five numbers you need to know after the Cup Day RBA decision

With experts forecasting a rate cut as early as February after today’s decision, home borrowers shouldn’t rush to fix their home loan as they’re better off making the most of a competitive variable rate from as low as 3.35 percent.  

Mozo's five numbers you need to know after the Cup Day RBA decision

This is the difference in monthly repayments for a home borrower on the average variable rate compared to the most competitive rate on the market. 

 Mozo's five numbers you need to know after the Cup Day RBA decision

If you’d rather haggle than refinance, Mozo’s annual mystery shop of the Big 4 banks reveals the average home borrower can save up to $2,996 in repayments annually simply by asking their lender for a better deal.

Mozo's five numbers you need to know after the Cup Day RBA decision

Investors claimed the largest discounts in Mozo’s annual mystery shop with lenders offering up to 1.45% off the standard variable rate compared to last year when no additional discounts were offered. This suggests the banks are now open to negotiating on investor rates again.

 Mozo's five numbers you need to know after the Cup Day RBA decision

The difference between the average one and two year term deposits and the average ongoing savings rate is sizeable - up to 87 bps. Savers should hedge their bets by putting extra cash away in a competitive term deposit before the next rate cut.

Kirsty Lamont is director, Mozo, and can be contacted here

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Interest Rates

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