Mozo's five need to know numbers after the Reserve Bank's September rate decision
With the beginning of spring property season, the Reserve Bank has elected to leave the cash rate unchanged at 1.5 percent.
Mozo's Kirsty Lamont has shared the five numbers you need to know after September’s rate decision:
Just 10 percent, or eight out of 83 lenders in the Mozo database, passed on the full 25 bps August rate cut to home loan customers. The average cut was a miserly 11 bps.
Fixed rate competition continues to grow, with new record low 2 year fixed rates hitting the market in recent weeks. The most competitive 2-year fixed rate is now 3.66 percent.
Borrowers can make the most of low rates by boosting mortgage repayments to build equity faster. Mozo’s calculations show that the average borrower could save $60,283 in interest and knock almost 7 years off their mortgage simply by putting an extra $50 each week towards paying it off.
In another blow to at-call savings accounts, which were already delivering seriously lacklustre returns even before the August rate cut, 57 providers cut rates last month by an average of 23 basis points.
The good news for savers is that term deposit rates are up for terms of 1 year and over. The best 1-year rate on the market is now 3.11 percent. Given the RBA is not likely to raise rates any time soon, savers can benefit by moving cash from at-call accounts into a competitive 1 year term deposit.
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