RBA rate cut: Mozo's five need to know numbers

GUEST OBSERVER

Mozo’s Kirsty Lamont shares the five-need-to know numbers

A year on since its last record low rate cut, the Reserve Bank has again slashed the cash rate to a new historical low 1.75 percent. Here's the five numbers you need to know: 

36 percent

Just 36 percent of lenders passed on the full rate cut last time the RBA slashed the cash rate.

$8.88 million

This is how much lenders stand to profit in additional interest each day if they play scrooge and hold onto a potential 25 bps rate cut.  In fact, three out of the Big 4 banks raked in a collective $386.7 million from failing to pass on the last RBA rate cut in full last May. 

1.18 percent

Even if lenders pass on a rate discount, home borrowers still have good reason to refinance onto a better deal with the average Big 4 variable rate 1.18 percent higher than the lowest variable rate on the market right now.

$43

This is how much an average borrower could save in monthly repayments if their lender passed on the full rate cut. Alternatively, if you ignore a 0.25 percent discount and keep your repayments the same, you could save more than $20,000 in interest over the life of the loan.   

3.60 percent

Savers can be rewarded with interest rates up to 3.60 percent despite a record low cash rate. This special rate is on ME’s Online Savings Account to customers prepared to make a weekly Tap & Go purchase with their linked Debit MasterCard.

Kirsty Lamont is marketing director of Mozo.